Analyst: Dell could make a bid for Palm

According to the latest analyst musings, carriers weren't too impressed with Dell's first stab at a smart phone—a rejection that could send Dell back to the drawing board or on the hunt for a buyout target. Well, eWeek now says there's a good chance Dell could aim big and make a bid for Palm.

Michael Dell himself confirmed last week that his company has a smart phone (or at least an MID) in the works. "It is true that we are exploring smaller-screen devices," he stated. After Dell's press conference in China a couple of days later, eWeek says an analyst for Yankee Group said purchasing Palm could be beneficial to the PC maker.

Another analyst, Endpoint Technologies Associates president Roger Kay, also seems to think that's possible: "Dell still has a pretty good cash position, and certainly could make a purchase, and an important one." However, Kay goes on to say, "I'd be wary of a Palm acquisition . . . Those are ex-Apple guys, and they're as difficult to herd as cats."

Naturally, Palm's upcoming Pre handset has generated a lot of buzz, and Michael Dell may want to see the device don his company's logo. On the flip side, Kay points out that the hype surrounding the Pre could make a takeover bid riskier and more expensive for Dell at this point.

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