Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
What consequences the market could expect if Dell decided to move and buy palmOne
Posted on 7-May-2004 21:50 by Darryl Burling | Filed under: Articles


What consequences the market could expect if Dell decided to move and buy palmOne
The rumour mill is suggesting that Dell may buy Palm One. What changes would happen to the market if this really happen? Time for some speculation from our point of view.

If Dell did buy palmOne, the question would be - would they continue to license Palm OS or stick to Microsoft? I suspect that Microsoft would be offering Dell incentives to stay with them; incentives that palmSource canít match.

Now if Dell did buy palmOne and they switched them from Palm OS to Windows Mobile, the industry would be turned upside down. Microsoft market share would go from 40.2% to 80.9% (assuming hardware sales are constant). Dell would have 43.1% market share, and HP would have 25.7%. PalmSource would then have Sony's 9.3% market share and not much more. I canít see them surviving on that.

Thus if Dell did purchase palmOne and switch, expect either a quick death to palmSource or a Sony buyout of them. Furthermore, if this happened - the smartphone market would consequentially be geared much more favourably in Microsoft's favour and both Nokia and Sony Ericsson would have some serious thinking to do - especially Sony Ericsson given that they donít have their own Smartphone OS to use.

If Dell bought palmOne and does not switch them to Windows Mobile will palmSource devices retain their market share or continue to slip?

To prevent further slippage of palmOne market share Dell would probably want to minimise development in the high end handhelds and pull the features of the higher end Tungsten line into the popular Zire line and continue to sell the Zire cheap.

This would in turn commoditize the PDA market far beyond where it is now - which suits the Dell business model and makes it hard for competitors to stay in the game. It would probably spell the end for Toshiba's high end models, and place significant pressure on HP's high end devices. It would quite possibly force an exit to some of the less innovative manufacturers (e.g. Acer) and the high end devices that donít offer serious benefits.

Finally - whichever way Dell went with the OS, it will put more pressure on HP to get into the smartphone market. This may be just the pressure they needÖ HP entering this market segment will in turn, give some of the smaller smart phone manufacturers more competition than they can compete against as HP will look to innovative design to differentiate itself from the competition. Again, this would give Nokia and Sony Ericsson a bit of a shake up.

All this is purely speculation, but I can smell a serious shake up coming.









Twitter and LinkedIn »



Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:



Trending now »

Hot discussions in our forums right now:

BBQ season 2019 - 2020
Created by freitasm, last reply by Paul1977 on 9-Dec-2019 16:29 (53 replies)
Pages... 2 3 4


White Island eruption
Created by Fred99, last reply by Dratsab on 9-Dec-2019 21:48 (27 replies)
Pages... 2


Spark outage 7 dec
Created by funnyfela, last reply by Tracer on 9-Dec-2019 17:41 (68 replies)
Pages... 3 4 5


Can you help me with numeric psychometric tests?
Created by HelpAli, last reply by Dratsab on 9-Dec-2019 18:36 (38 replies)
Pages... 2 3


Spotify Android app No internet connection
Created by afe66, last reply by Dratsab on 9-Dec-2019 16:34 (17 replies)
Pages... 2


Calls suspended for exceeding the 'Fair Use' policy
Created by kiwibob1, last reply by SaltyNZ on 8-Dec-2019 19:12 (16 replies)
Pages... 2


Master telephone jack wiring
Created by ShobbysLead, last reply by cyril7 on 9-Dec-2019 14:36 (33 replies)
Pages... 2 3


Odd line behaviour
Created by Geektastic, last reply by Goosey on 9-Dec-2019 22:36 (10 replies)