Hewlett Packard buys Palm. At last the PC giant enters the smartphone market!

HP issued a statement following its announcement: 'Palm's innovative operating system provides an ideal platform to expand HP's mobility strategy and create a unique HP experience spanning multiple mobile connected devices.

'Palm possesses significant IP assets and has a highly skilled team. The smartphone market is large, profitable and rapidly growing, and companies that can provide an integrated device and experience command a higher share. Advances in mobility are offering significant opportunities, and HP intends to be a leader in this market,'  said HP executive vice president, Todd Bradley.

The deal gives HP automatic entry into the smartphone market, where it has been conspicuous by its absence. It also rescues Palm, and its critically acclaimed webOS technology, which was regarded by many as the best alternative to Apple's iPhone OS and Google's Android.

HP is also known to be targetting the tablet market with a product to rival Apple's iPad. HP's tablet has so far been shown off running Windows 7 but it is almost certain that HP will release a tablet running webOS.