Report: Palm Still Likely To Launch Handset With Verizon Wireless
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With the recent introduction of two new Android handsets by Verizon Wireless (NYSE: VZ), Palm (NSDQ: PALM) seemed to be losing the popularity contest. But now there’s evidence emerging that Verizon may still launch a Palm webOS device early next year. A launch of that magnitude could give the platform a much-needed jolt, especially as rumors float around that Palm is appearing more and more like a buy-out candidate.
SEE ALSO: Verizon Wireless Focuses On Network Performance In Lieu Of Having Snazzy Smartphone Line-Up
In a research note to investors, All Things D reports that Kaufman Bros. analyst Shaw Wu says a Palm smartphone on Verizon’s network could happen in the first half off 2010 based on checks with supply chain sources. Wu provides three reasons why Verizon would want to carry a Palm phone: despite heavy promotion and favorable reviews, the Motorola (NYSE: MOT) Droid and HTC Droid Eris have not met expectations; Palm’s exclusive is still expected to expire at the end of 2009; and finally Verizon continues to sound interested in the webOS, including public comments by CEO Lowell McAdam.
If this is true, then more than ever Palm sounds like a perfect buy-out candidate for Nokia, which has been considered the most interested buyer. The webOS did launch with favorable reviews, but it’s been difficult for Palm to move fast given its always dwindling cash balance. A big company, like Nokia (NYSE: NOK), would be able to provide the financing to get to market quickly, while also having the resources to raise the platforms’ visibility. For Nokia, it would mean supporting yet another operating system, but it would gain a much-needed foothold into the U.S.
Wu wrote: “It’s too early to declare game over,” even though many investors “have written off Palm as a legitimate competitor and assumed Android will be the platform of choice at Verizon and other carriers. We believe Palm still has sizable advantages with its multi-touch capability and vertical integration.”
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