Jon Rubinstein, Chairman and Chief Executive of Palm, expressed his opinion on the new games Palm phones at the 2010 International Consumer Electronics Show (CES) in Las Vegas, Nevada, January 7, 2010.

Hewlett-Packard Co. also revealed that it would buy out Palm Inc. It has offered a $1.2 billion deal to buy Palm Inc. The former company is of the opinion that it can resurrect the beleaguered smartphone manufacturer. The company claims that it can put Palm in direct competition with companies like Apple Inc. and RIM.

This news that was made public on Wednesday has come as a surprise to the Wall Street. Earlier it was being conjectured that the company would shift its focus on probable Asian bidders for a takeover. Asian company most anticipated to bid for the takeover was China's Lenovo.

Analysts reveal that HP has a deep interest in Palm.

Avi Cohen at Avian Securities, "PC companies don't need cellphone-type margins to make the model work; they can be much more price-aggressive in capturing share and will certainly drive margins down for everyone else".