Mr. Arendsi reasoning is that “iPods are not quite as invincible as they look,” arguing that Appleis refusal in the 1980s to license the Macintosh operating system is similar to the fact that iTunes Music Store purchases will play only on an iPod.
With Palmis current net value of US$1.1 billion, Mr. Arends reasons that Apple could spend 2% of its shares to make the purchase “but immediately add 10% to sales and gross profits.” In addition, while the iPod is “the must-have product for Christmas 2005,” the deal would give Apple the must-have gift for later holiday buying seasons.
Not So Fast
While Mr. Spiers agrees that Apple should produce a PDA, he doesnit see the point in the company acquiring Palm. He sees “very little difference” between the Palm OS of 1999 and the one in use today and would rather see Apple put its expertise into creating an “end-to-end experience” in a PDA of its own creation.
Mr. Spiers also argues against device convergence in the form of a PDA/MP3 player/camera/cell phone/whatever. While he doesnit like carrying multiple devices when he travels, he sees such an all-in-one gadget “consolidating [bulk] into one bigger lump instead of two or three smaller ones.”