Palm, once one of the best smartphone maker during “90s, lost it”s shares to other giants running Symbian and Windows Mobile and to the mighty iPhone. Their shares rise following a rumor of it’s possible acquisition by mobile industry giant Nokia.

Palm, once the only leader of the smartphone market and pioneer of the handheld computing has seen many highs and lows since it’s foundation. During last few years, the company lost it’s market-share due to lake of innovation. Comparatively cheaper and advanced smartphones from Nokia, Sony Ericsson made palm to lose it’s smartphone share. In 2007, Apple stroked on the smartphone market which made Palm to introduce something new to survive in the market and thus the WebOS based Palm pre came. However, still iPhone’s market-share is growing among business professionals and it is estimated to grow further in following years.

Palm Pixi (Left) and Palm Pre

According to reuters, Palm Inc. shares jumped to it’s highest level in two years on Tuesday, 23rd September due to rumors that the smartphone maker may be a takeover target of current smartphone leader Nokia. The Palm Inc shares rocketed to about 10% due to this news.

However, representatives of both of the companies haven’t confirmed the deal. Nokia may be interested to takeover Palm due to it’s revival followed by the introduction of Palm Pre and Pixi. Nokia can kill three birds with a stone if the news is true. First, Nokia has poor presence in the US market, acquisition of Palm can greatly help Nokia to make their position strong in the American market. Secondly, Nokia is trying hard to develop a multi-touch based device like iPhone from last two years while Palm already has this technology. Third, Nokia can also control their dropping market share against Samsung and LG in touchscreen segment as till date they have failed to introduce a good and responsive touchscreen device. Moreover, it will also help Nokia to compete with Samsung, which offers the widest range of OS (Symbian, WiMo, Proprietary OS, Featurephone OS and Android) to their customers by offering Symbian, Palm and WebOS!

Rumors also says that competitor Motorola is also eyeing Palm but there are less chances of that as Motorola’s handset division is currently facing heavy loses and dropping market share. Analysts also say that buying Palm doesn’t guarantee success. However, for now we can just wait for official comments on this rumor and hope the best for customers!