An investor's note from Barclays Capital yesterday acknowledged the Lenovo rumor. It mentioned that the costs of the acquisition and integration could be a deterrent for a company like Lenovo. But it also recognized that Lenovo has been "increasingly active in the mobile space" and that it would "not rule out inorganic means to expand its mobile biz." The analysts said they remain cautious about the likelihood of such a deal but could not dismiss the possibility.
Wall Street has not been overly optimistic about Palm's future, though it is seeing some progress through wireless carrier channels, where prices are dropping fast to entice consumers to check out Palm's offerings. Still, the competitive landscape is strong.