Full FeedHTC to buy Palm?
HTC front man, Peter Chou made three interesting comments on Friday. HTC is surprising just about everyone with the products they put out now under their own brand. How good are things for HTC? Check out these almost outlandish statements below:
We have increased production on the G1 and Touch Diamond
During a time when smartphones are taking over the market but economic woes have most players hedging their bets, HTC expects to move 1 million G1 Android phones and a whopping 3 million Touch Diamond phones. These are big numbers considering the G1 is a first generation product that has received fair to good reviews from the press while the Touch Diamond is a hot little Windows Mobile skinned phone that has yet to really make a dent in the USA. Upping production on these two products means HTC is hitting stride in the market.
HTC is insulated from the economy and we are not decreasing staff
Chou denied rumors his company is seeing reduced orders and denied the company is reducing their staff numbers. Is it possible that demand for all HTC phones is defying what is happening around the company?
HTC is looking at acquiring a US design company
While Chou declined to comment further on the issue, I am naming Palm as the most likely US company. A buyout of the legendary PDA company responsible for the mass adoption of smartphones (in my opinion) would do a few things for HTC but I am not sure it would do enough. Let me explain what I mean.
Palm can be had on the cheap. Yesterday, the company announced staff reductions as the US economy enters into a cost-conscious holiday season. Palm’s performance over the past year has been buoyed by the Centro, an inexpensive somewhat-smart phone for the masses. Upscale offerings like the Treo Pro have been slow out of the gate thanks to an expensive unlocked option launch and the ultra-slow adoption of a US carrier means a price outclassing: $549 for a decent phone vs. $199 for the manna from heaven iPhone. Not a tough call for many consumers or business customers.
And speaking of the Treo Pro, the phone represents something else. It represents Palm going back to HTC for production. Previously, they had moved away, favoring other manufactuers. Returning to HTC may be the smartest thing Palm ever did as it seems HTC is interested enough to swoop in and kick the tires. HTC has a good look at Palm technology and the new design is the best we’ve seen from Palm in years.
Would an acquisition of Palm by HTC do anything for High Tech Computers? The HTC brand is certainly gaining cache in the US as consumers become more aware of their products with impressive units like the Touch, Touch Pro (Fuze), Touch Diamond and others. Does HTC need a business brand? Could HTC bring Palm back to sexy?
Source: [Digitimes]
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Palm? What about MOTO?
on November 25, 2008 at 10:44 AM - LINKInteresting idea Mr. Berger. But Palm is more congruent with HTCs smartphone core competency. I could see Palm rising like a phoenix, or other mythical bird, from the ashes to regain a foothold in the US corporate market.
Adding Moto would add what to the mix? Cheap flip phones? Big headed Q9s?
I’d argue anyone can make a good flip phone, but not everyone can nail down a decent smartphone. I don’t think HTC would gain as much with Moto vs Palm.
Maybe HTC would find the bluetooth earpieces attractive? Someone has to.
on November 25, 2008 at 10:48 AM - LINKFair points Mr. Mason. Would be interesting to see what MOTO has in store for us with Android. They’re sure taking long enough to hash it out.
All HTC needs to pick up right now is a strong brand (a la Palm, Motorola, etc). It seems like they’ve got all of the other components of a successful CE company covered.
on November 25, 2008 at 11:05 AM - LINKPalm hasn’t got anything other than name and they are rapidly losing anything THAT represented years ago. They do not design their handsets - the Treo Pro =already is= an HTC (designed and built) product. The OS is Microsoft’s. MAYBE some tweaks are Palm’s.
HTC is already into all US carriers. They do not need Palm to sell to those carriers.
But if HTC actually DID buy Palm it would be as bad a deal as Access buying PalmSource - a deal that DID go down to the disbelief of all.
on November 26, 2008 at 08:52 PM - LINKHTC followed through with their purchase…not unexpectedly, it wasn’t PALM.
http://www.engadget.com/2008/12/03/htc-acquires-design-firm-one-and-co/
on December 3, 2008 at 06:39 AM - LINKAh yes, it was actually a design firm. Thanks for the update John.
on December 3, 2008 at 07:40 AM - LINK