HTC decides against bidding for Palm, kills our buzz
Don't tell us we didn't try. In spite of all our pleading for HTC to acquire the troubled Palm, Inc. and produce a sparkling union of awesome, Reuters is this morning reporting that the Taiwanese hardware manufacturer has decided against the idea. According to an internal source, there "just weren't enough synergies to take the deal forward." Then again, this conclusion was reached after HTC reviewed Palm's numbers, so maybe that's just a nice way of saying that Palm's financials are worse than we might think. We're also told that now only Lenovo remains as a serious contender out of Asia, following the stalling of talks between Huawei and Rubinstein's crew. Such a deal would make plenty of sense given Lenovo's cash reserves and mobile aspirations, but it'd be nowhere near as exciting for our geeky imaginations.
[Thanks, ninellec]
[Thanks, ninellec]























Who wants to carry all that dead weight..
But it WOULD be nice to see WebOS running on CAPABLE hardware, which Palm can't seem to produce.
@jellotime91 smart move, no need to be stuck with an albatross
@cherryboom I use and love an iPhone, but HTC makes indeniably great hardware (apart from a few drawbacks). Cutting edge screen sizes and resolutions, sleek product design, amazing UI design, record setting CPU speeds and amounts of RAM..
@jellotime91
HTC is not quietly brilliant just because they say so. Proven.
@cherryboom
HTC HD2, even running windows mobile, pile of rubbish, is far superior than the iPhone. Their hardware is superb and off the top of my head, I can't recall any other device manufacturer that matches them on hardware. HTC consistently brings out good hardware.
@cherryboom Have you heard anything about processor speed?
@ounkeo Um, right, that's your opinion.
You're entitled to that.
And my opinion is that although the HD2 is a great phone, and HTC consistently produces some of the best hardware in the game, for various reasons, nothing is better than the iPhone.
That's just my opinion based on my personal experience, no need to attack me on it either dudes!
@cherryboom
When it comes to having all of your comments downranked you are the champ.
@ounkeo The HD2 hardware is unrivaled when you compare it to the 3GS, but overall the iPhone is more desirable because of the software environment.
That being said, I wonder what HTC will put out when the iPhone HD or whatever you'd like to call it gets released.
@jellotime91
Yeah, and then Palm will need to be split into two companies, one for the software, and one for the hardware in order to survive... oh wait!
@anus1220
I don't get how the iphone O S is more desireable? It really hasn't changed in 3yrs. After adding features that others already had its still not much more than a simple bunch of icon grids. But hey can't argue ifans...its like arguing neo cons when you argue with fools on lookers can't tell the difference between the two
@McKirf Deja vu won't work its magic this round for the hardware
"kills our buzz"
Well someone had to do it, I'm glad the speculation is over, it was likely to do more harm than good to Palm.
@jellotime91
In the short term it may make sense but I think long term HTC will regret it.
They are positioned PERFECTLY for this type of deal. They already have a good market presence and having their own mobile OS would be amazing.
@jellotime91
I'm surprised that there's no word here of Huawei, the people who Palm themselves approached to buy them out. They're the most likely candidate to seal the deal.
Also, HTC's rejection means they feel secure in their legal battle against Apple.
@ounkeo Sales tell a different story.
@ounkeo No amount of hardware running windows 6.5 can be superior to iPhone. For starters. IPhone gas better apps, better web browser, better multi media due to iTunes integration, better gaming platform. Even exchange server integration is better on the iPhone and reading office attachments on the iPhone is also better. Anyone who thinks the HD2 is better needs to know that even T Mobile has given up on their iPhone trade up program to the HD2. Apparently the number is in the low hundred at best. In fact the main tag line for the HD2 is - do you want a phone with a ridiculously large screen? Strange but true!
@Yankees Win
Agreed. It's not like HTC needs them... Def not looking good for Palm tho...
@SCXFAN
Most people who bought an iPhone doesn't even have a little bit knowledge of hardware inside.
If we discuss hardware, sales figure doesn't mean anything.
@ounkeo
Great hardware is only 1/3 of the equation. HTC and Palm are learning that great hardware or OS software by itself doesn't mean success in the market. People dismiss Apple products based on geeky details, and miss the fact that their overall strategy which marries hardware, software, and user services into a seamless system is the proven winner.
@cherryboom You can make the same argument about any phone then, including the iPhone. What's so special about it? It's just a stupid screen with a 5 megapixel camera and a metal case...
@n8equalsd HTC has their hands full with Android & WM7 devices. It would have been really difficult for them to compete against themselves with a first party OS especially when Palm will be flexible to licensing.
This could be a lucrative decision unlike some people are thinking. Reactions--- http://j.mp/palm-for-sale-reactions
@Ed T
Exactly. Thank you.
And I love how my comment still got down-ranked by freaking fan-droids...
iPhone OS has proven itself time and time again to be the better platform. To summarize, it has way better apps, better performance because of proper hardware and software integration, smoother GUI because of GPU-acceleration, it's a way better gaming platform, better multimedia experience, better web browsing than any other phone (even though some recent phones are a tiny bit faster, they still don't render as well), and hey, iPhone 2G got updates from 1.0-3.x... And I think that's pretty damn impressive. Let's see the G1 make it to 4.0 fandroids, then you can accuse apple of abandoning consumers. And I don't know about you, but I really like getting updates as soon as they come out, not waiting for my country and carrier to allow me to have it...
@jellotime91 Yes, and this is why Rubinstein announced that he was open to the idea of licensing webOS.. HTC can stick with its core competency (building awesome hardware) and not be saddled with the rest of the Palm troubles.
That said, I do not expect HTC wants to add yet another OS type to its stable .. unless carriers are demanding HTC webOS devices (which they could be doing?)
@jellotime91
You are all mostly clueless.
1. Palm can license their OS to HTC. There it is the whole 'HTC HARDWARE+WEB OS" thing you idiots think you want, and costs HTC a few billion less dollars.
2. HTC would ruin its relations with microsoft and google by having its own OS
3. Merging companies costs billions. Palm isnt exactly the most desired company.
@jellotime91 Clueless is right... iPhone OS doesn't contain any magic code that the others don't have. It's got spit and polish to look pretty, but it does nothing MORE that Android, WebOS, or Maemo can't do. Apple has a strong application developer community, a fanatical iPhone following, and a good marketing. That's it. The OS is simple and intuitive, intended for mainstream consumers and minimalists. Most people on the planet are NOT technically inclined, and Apple caters to that, holding their hand while spoon feeding them in its walled garden.
And before you try to tell me about hardware, don't. The hardware in the iPhone 3GS is nothing amazing either (despite what iFans will try to tell you), and trust me, I know. (If you don't trust me, go into my profile and check out my website, last post in May, read it.)
If you want to get on a soapbox, it's best to know what you're talking about before you do. Thanks.
@Electrofreak
*last post in March
FFS Engadget, my arm for an edit button.
@Electrofreak
@OSXSucks
Neither of you have any right to call me "clueless", everything I said about iPhone OS is true, and honestly, I'm very technically inclined but I am not a developer, so I don't need an open source OS (Which, in many cases, is not very open at all because of carrier preferences).
I'd take a more fluid operating system, close to 200k apps, a stronger developer community, and a great jailbreak community over any other platform out there. Not to mention proper media integration, great content creation, and an app for pretty much everything you can think of..
I'm allowed to have my preference, you're allowed to have yours. I don't think you're "clueless" because you prefer Android, and I certainly won't be personally insulting you based on your preference.
Oh, and, screw edit buttons, how about a comment system where I don't have to return to the main article every time to reply to a comment, even though the reply button is right there but just doesn't do anything? OR how about a website that doesn't stand out as the ONLY website that crashes mobile Safari every freaking time I visit it... Engadget needs to step it up. Gizmodo's comment system is easily 100x better.
@OSXSucks
1. I know that, but if HTC shown interest in purchasing Palm, it would make an HTC phone running WebOS more likely.
2. Really? Because I seem to remember a little company called Palm making devices with its own OS as well as Windows Mobile without having any problems.
3. Noted, I believe the first sentence I said was "Who wants to carry around all that dead weight?".
Please don't direct your comment at me if you want to talk to other people who happened to latch onto my comment so that theirs would be seen.
@Yankees Win But it's not about Palm's WebOS - it's about getting access to all the patents that make the Apple patent infringement claims go away, because they would have a smartphone patent portfolio that would kill Apple in any suing-countersuing situation.
No... But... But... No... Think of the possibilities! A world with an HD2 running WebOS! All gone! No...
@ThundaChunky Hopefully Palm will license Web os! The Web os EVO cannot die!
@ThundaChunky
I know, HTC hardware running webOS would be legendary. :'(
Palm: Getsuga TENSHOU!
HTC: Backs off...
@Bort Simpson hahahaha good one
@Bort Simpson
I love Bleach! You know we love that in the hood yo! Hey Bart how have you been?
@Bort Simpson Where you been, boy? I need you to get daddy a beer, ok?
dislike
@nerd was looking for that button as well. I don't want to like this!
Must... not... like!
NOOOOOOOOO! I was looking forward to this marriage of these two companies.
@imGoingNameless It was a little obvious this wouldn't happen, in spite of all the pleas to have it done. By my estimate, HTC might have sold 12M smartphones last year (multipled Q2 by ~5), I gave up after 10 mins of Googling.
800M+ in market cap/12M phones is a ridiculous price (for HTC). Not to mention the fact that Palm is losing money left and right, so you not only have to pay a boat load per unit you ship, but you also have to turn things around. HTC doesn't make the margins that some other OEMs due primarily for 2 reasons, they use cutting edge technology while bringing tremendous value to the market and they have the disadvantage of being a small outfit (I think the situation looks much worse when you combine smartphones with featurephones).
The market is rapidly growing, so to base it on 12M units is "conservative" but at the same time, this assumes all the devices would go to WebOS...so in reality, the number is heavily inflated. I think Palm would've been much more likely for LG or Samsung (assuming Samsung knows Bada sucks, but that might be giving them too much credit), but there wasn't much point in dampening the mood until it was announced. Plus, LG and Sam were already distant enough horses as LG has expressed their contempt for having their own OS & Samsung is trying to keep going the unsuccessful route they've been going for a while.
HTC could never afford this unless it somehow would've saved them within the lawsuit (have to assume they have a losing case now, would have a winning case with Palm patents AND the lawsuit will hurt them big). The stars were never really aligned on this one.
@juanvaldez
Surely the patents would have been desireable if nothing else
@Cy Starkman Apparently not!
@Cy Starkman
I thought the same thing but obviously they didn't see any that they felt were worth the price.
@Cy Starkman
I think you are spot on here. All along the real value of Palm has been the patents, not WebOS. That, coupled with an ugly balance sheet doesn't make this a good deal for HTC. Plus, if most of those patents are software (I honestly don't know) this really makes no sense for HTC.
I know everyone was excited for a HTC WebOS device, but I think the reality is that WebOS is dead. The value here is likely patents, people, name, WebOS in that order.
HTC realized that Palms patents are all.... meh?
@Wesscoast Yes, that is the OTHER not-yet-written-about angle on this.
Go Dell Go!
These new handsets from Dell look killer!
They look like a marriage between an HD2 / Palm Pre (vertical slider)
Go Dell Go!
Go Dell Go!
These new handsets from Dell look killer!
They look like a marriage between an HD2 / Palm Pre (vertical slider)
I'm wondering if this has something to do with the fact that Palm itself isn't quite ready to be bought out:
http://www.engadget.com/2010/04/22/palm-ceo-still-thinks-company-can-go-it-alone-open-to-webos-lic/