Palm allready in talks with the chinese mobile giants.

"Huawei and ZTE are potential buyers. It makes sense: they don't have an operating system or a brand, but they have cheap manufacturing costs and money to invest and develop the brand," said IDC analyst Francisco Jeronimo in London. "Consumers don't associate Chinese brands with quality products and don't pay a premium for such a mobile phone ... Palm would be perfect for them."

Huawei and ZTE are two of China's biggest success stories, banking on demand from a strong domestic market and growing success overseas, where they compete with the likes of Ericsson (ERICb.ST) and Nokia Siemens Networks [NOKI.UL].