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TCL Purchases Palm with its “Double+” Strategy Overseas

January 07th,2015

In the history of the mobile communication terminal industry, Palm has always been a pioneer. However, after being stuck in a period of recession, such a brand that has always enjoyed popular support will be back to consumers once again.

On January 6, TCL Communication officially announced during the opening ceremony of Consumer Electronics Show held in Las Vegas that it will purchase Palm Inc., a USA company holding Palm’s brand and relevant use rights. After the purchase, Palm Inc. will still keep its headquarters in Silicon Valley, in order to utilize the area’s unique advanced technologies and talent advantages.

Palm has always had a huge number of loyal users, so it will be good news for its fans when it decides to return to the market. It is more surprising that TCL also announced that it will rebuild Palm with a totally new mode. Each fan will have the opportunity to participate in the production process of Palm’s new products from concept to marketing, including technological orientation, user experience, construction of ecosystem, marketing, supply chain, and business mode. It ultimately aims to enhance the target users’ sense of participation by means similar to crowd sourcing, which will not only increase the loyalty of its users, but also genuinely implement the users’ new ideas, in order to increase the value of product technology. TCL Communication also said that it will support and offer guarantee to Palm’s brand rebuilding with its capacity for 120 million mobile terminal devices, capability of controlling the global supply chain, over 5000 technical developers, and a huge team offering localized service in over 170 countries and regions. As one of TCL’s main businesses, TCL Communication was ranked fifth around the world in terms of sales volume during the third quarter of 2014. The Alcatel Onetouch and TCL Onetouch belonging to it have already occupied the second largest market shares in Latin America, and also ranked in the top five in the North America market in 2014. TCL Communication keeps its foothold on whole-product line and global arrangement, and strives to transform into a mobile Internet solution supplier based upon intelligent terminals, which will meet the users’ demands in terms of hardware, software, application, and service. An insider said that, after this purchase, TCL Communication will further increase its competitiveness within the mobile market in North America depending on Palm’s strong brand recognition in North America. In addition, it will also be actively improving the previous product line structure, which mainly aimed at the low- or medium-level.

For the plan after purchase, TCL Communication announced that it will not only aim at advancing innovation of the hardware in the new-generation of Palm products, but also equip the products with applications and services which will directly meet users’ demands. Products will be released in the US market at first, but the specific time for release will be announced later. TCL Corporation announced at the beginning of 2014 that it will carry out “Double+” strategic transformation, namely “Smart + Internet” and “Product + Service”. Within one year of the announcement of its transformation strategy, TCL Corporation had carried out several activities related to cooperation and purchase, and also released cross-border products installed in TV+ smart television platforms with several domestic giants related to broadcasting and Internet. In October of 2014, it founded a commercial cloud platform jointly with Cisco and an Internet service company based on video communication. Recently, it has also established strategic cooperation with Wanda Group to jointly build up smart commercial real estate via commercial smart system solutions and Internet applications, and a service based on commercial cloud. However, TCL Communication purchased Palm and planned to rebuild it with a new business mode totally different from the traditional hardware manufacturing mode, which will be a strong complement to the smart and Internet industrial platform constructed by TCL Corporation centering on user experience. Furthermore, it is looking forward to the effect generated by cooperation with its fans, the economy, and a strong brand.