categories

HOT TOPICS

Subscribe to our Feed

Should Dell Acquire Palm?

Posted on Tuesday, Mar 6th 2007

I wrote two pieces recently discussing potential turnaround strategies for both Dell and Palm.

::

The world is moving to a place where the laptop needs to become much more than just a laptop. An integrated mobile device is in the cards, that is the combo PC-Phone-Music Box. May be, even Camera. Dell needs to figure out a way to latch onto this trend, and find a hit product. iPod saved Apple. What will save Dell?

::

With the iPhone announcement, we enter an era when all the other smartphone providers need to now sit up and define their own clear positioning and path forward. With Steve Jobs working his PR machine, and the media lapping up the show and tell, it is imperative that Palm, for instance, decides where it goes next.

::

Of course, for both Palm and Dell, the driving force is going to be the iPhone, and how it moves the market. Here’s Frank Levinson’s piece, iPhone and the Future.

::

What makes this device different?

3 things –

1. The use of OSX – this choice empowers the device to be able to run Safari, mail and widgets. It continues to unify the Apple product line, not fragment it.
2. The use of a new consumer user interface (UI) and the deletion of so many buttons and choices (this was what we did about 16 years ago with Windows and 23 years ago with the first Mac and now we are doing it again).
3. The realization that Moore’s law scaling of silicon is continuing and this makes the possibilities of integration infinite.

::

Dell, in its turnaround, will require an iPhone like covergence device to remain in the game. Palm, certainly, is one such device, RIM’s Blackberry is another. Both Palm and Rim will need very compelling strategies of their own to position vis a vis the iPhone.

The reason I like a Dell – Palm marriage is that Dell has a long history of selling into the enterprise. If you read my suggestions for Palm’s positioning in the turnaround strategy article, one path they could go down is making Palm the business users’ device, that really integrates with the enterprise applications. Such a strategy would be synergistic with Dell’s channel.

However, both Dell and Palm have significant reinventing to do, at this point!

Hacker News
() Comments

Featured Videos

Comments

[...] suspects: Nokia and Motorola on the vendor side, and TPG and Silverlake on the Private Equity side. I was suprised that Dell isn’t bidding, and did some digging to see what’s going on, and found [...]

Sramana Mitra on Strategy » Blog Archive » Palm Changing Hands Tuesday, March 20, 2007 at 1:07 PM PT

[...] Should Dell Acquire Palm? [...]

Sramana Mitra on Strategy » Blog Archive » iPhone and the Future of Palm Friday, April 27, 2007 at 8:16 AM PT

[...] Should Dell Acquire Palm? [...]

Sramana Mitra on Strategy » Blog Archive » Palm's Fate Monday, June 4, 2007 at 4:10 AM PT

[...] especially, the lack of expertise building in the cellular phone business. I had thought that Dell would make a bid for Palm. They can still do that, as Palm engineers its own turnaround. But the overall strategy void is of [...]

Dell Needs a Convergence Device Strategy Badly - Sramana Mitra on Strategy Wednesday, October 17, 2007 at 8:30 AM PT

[...] and its shares jumped 10% in after hours trading to about $24. Earlier coverage is available here, here, and [...]

Dell Acknowledges Need For Convergence Device Strategy - Sramana Mitra on Strategy Friday, May 30, 2008 at 9:49 AM PT
`