Nokia picking up Palm? Unlikely, says analysts

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We talked about this early last week and then again on the most recent BBCool podcast – but the fire’s been put out. I don’t have enough fingers and toes to count how many times Palm’s rumoured to have been in the real estate listings, but reports got more intense last week when it was noted that Palm’s been talking about a possible purchase. Nokia and Motorola were the front runners for the buy, but now Nokia’s been taken out of the equation by a slew of analysts.

This doesn’t make any sense,” she said, stressing that buying Palm would be a huge strategic about-face for Nokia, which uses the Symbian operating system in its enterprise devices as opposed to the Palm and Windows Mobile platforms used by the U.S. company.

“While there are three versions of the Treo and it operates on cellular standards, the product line is in many ways a single offering,” Casey Ryan, an analyst with Nollenberger Capital Partners, told clients in a recent note.

“If the Treo line becomes unpopular, or if a competitor successfully mimics the Treo and wireless carriers lose interest in the product, Palm’s results are likely to be negatively impacted,” Ryan warned.