Following the $1.2 billion acquisition for Palm, many believed Hewlett Packard (HP) was looking for a fast-track way into the mobile device market, but that isn't the case, says HP CEO Mark Hurd.

"We didn't buy Palm to be in the smartphone business, Hurd said at the Bank of America Merrill Lynch technology conference earlier this week. "And I tell people that, but it doesn't seem to resonate well. We bought it for the IP. The WebOS is one of the two ground-up pieces of software that is built as a Web operating environment...We have tens of millions of HP small form factor Web-connected devices...Now imagine that being a Web-connected environment where now you can get a common look and feel and a common set of services laid against that environment. That is a very value proposition."

Hurd's comments certainly are in line with what HP has been crowing about ever since it purchased Palm, which is the IP portfolio. And while smartphones might not be on the agenda, HP did recently say that it plans on building a tablet around the newly acquired mobile OS.

There are a couple of questions surrounding Palm these days, such as will the company be sold, and if so, who's going to snatch it up? According to a recent Reuters report, Lenovo has replaced HTC as the front runner to scoop the struggling smartphone maker up.

Nokia, Motorola, and Research in Motion (RIM) have all also been mentioned as possible suitors, though if you talk to Palm CEO Jon Rubinsteign (and the Financial Times did), Palm can get by on its own.

"I believe Palm can survive as an independent company. We have a plan that gets us to profitability," Rubinstein said, adding that Palm is working "fast and furious on new handsets." Palm is also considering licensing its webOS to other manufacturers, Rubinstein said.

Naturally, Lenovo had no comment on any potential interest in acquiring Palm.