Palm is now in it's last throws. http://money.cnn.com/2010/03/19/technology/palm_target_price_zero/ This article now says that Palm only has $500 million in cash left and that their stock is worthless. WM7 will be coming out later this year so they will lose even more marketshare. Some investors are giving them another year before they're done. Apple Would have two reasons to buy Palm. 1. Patents. Palm has a deep catalog of patents and could be very useful to own them, not only in their suit against Nokia, but to have those defensively in case of future lawsuits. Apple can never be sure that someone else, like a Nokia, wouldn't buy Palm and use those patents against Apple in their current suit. I would hope that Apple wouldn't use those patents to sue others though (like HTC). 2. There is a lot of Apple engineers working at Palm and it would be good to bring them back to the fold rather than losing that talent to competing companies. Good engineers are always hard to come by in the Valley. I wouldn't want Rubenstein back but I would make a deal that makes him permanently retired. Clearly Apple does not need Palm for WebOS but Palm could prove itself valuable to any company looking to purchase them.