U.S.-based smartphone manufacturer Palm announced that it is putting itself up for sale and will be searching for potential bidders as early as this week, according to three individuals familiar with the story, reported Bloomberg today. Possible buyers include Taiwan's mobile corporation HTC and China's computer firm Lenovo Group, according to The New York Times.

"The challenge for Palm is finding a buyer prepared to pay a premium for an immature platform when many potential suitors have already invested heavily in Android," said CCS Insight Analyst Geoff Blaber.

Palm is collaborating with Goldman Sachs Group Inc. and Qatalyst Partners to find a buyer, Reuters reported today. The phone-maker offers users its WebOS software amid a market featuring Apple Inc and Google Inc technology.

"Palm still has quite a good brand in the U.S. market, and some strong technology, so you can do something with it," said Technology Analyst Frank He, working for Hong Kong's BOC International Holdings Ltd. "The shares have gone down a lot and the company may become attractive to anyone looking for a turnaround play."