Hewlett-Packard, the world's largest maker of personal computers, is to buy struggling smartphone maker Palm for 1.2 billion dollars, the companies said Wednesday.
The move will help HP compete in a smartphone market that is growing much faster than the market for PCs, as consumers increasingly use hand-held devices to access the internet, DPA reported.
HP has seen itself shunted aside as competitors like Apple and Google dominate smartphone sales. Despite well-reviewed phones and operating systems, Palm was never able to gain traction among US buyers who preferred the offerings of larger competitors.
The Silicon Valley companies announced the deal this afternoon, saying it has been approved by both boards of directors.
"The smartphone market is large, profitable and rapidly growing," HP executive vice president Todd Bradley said in a statement announcing the deal. "Palm's innovative operating system provides an ideal platform to expand HP's mobility strategy and create a unique HP experience spanning multiple mobile connected devices."
Bradley, who runs HP's personal-computer division, is a former Palm chief executive.
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