HP CEO Says Palm Wasn't Purchased To Surge In Smartphone Market

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News Posted: Thu, Jun 3 2010 8:26 PM
Well,this will surely come as a disappointment to many, and it mayhonestly make others a bit excited. Hewlett-Packard, who decided to ponyup just over $1 billion earlier in the year to acquire Palm and theirassets, has now openly stated that the purchase wasn't about cellphonesat all. On the surface, this doesn't make a lot of sense. Palm hasalways been known to consumers as a mobile device company, with the Treoand Pre/Pixifamilies being some of the company's most popular. And HPhas been in the mobile device market for awhile now, mostly with thecreation of Windows Mobile-based business smartphones.



So why would HP spend over a billion dollars on a phone company, but notuse the purchase to further their phone efforts? According to the CEO,it's simply all about the IP. Here's CEO Mark Hurd's exact quote on thematter:

"We didn’t buy Palm to be in the smartphone business. AndI tell peoplethat, but it doesn’t seem to resonate well. We bought it for the IP. TheWebOS is one of the two ground-up pieces of software that is built as aweb operating environment…We have tens of millions of HP small formfactor web-connected devices…Now imagine that being a web-connectedenvironment where now you can get a common look and feel and a commonset of services laid against that environment. That is a very valueproposition."


Now, we understand the point about WebOS being a greatoperating system.And we already knew that WebOS would likely find its way onto tabletPCs and printers before too long. But we never imagined that HP wouldsimply ignore the phone market altogether. Honestly, this means theworld now has one less major smartphone platform to choose from, andless competition in a market is never a good thing in a situation likethis. Only a few WebOS smartphones were ever made available, and nowthat HP is basically killing that family, who really expects developersto continue developing apps for the WebOS app market?

We understand how HP could utilize WebOS in their existing productrange, and we're sure that using that environment will provide them withgreat advantages. But to have such an amazing mobile OS and simplyignore the smartphone market seems like an opportunity missed to us, andeven if it makes business sense somehow, it certainly saddens us to seea major OS option fade away, leaving iPhone OS, Android and Symbian^3to battle it out with Windows Phone 7.
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HP says it's in the smartphone market, after all

http://www.engadget.com/2010/06/03/hp-says-its-in-the-smartphone-market-after-all/

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rapid1 replied on Fri, Jun 4 2010 11:56 AM

HP has been messing around in the Solo OS environment for quite some time now. So this actually makes sense to me. I also don't think he means there will not be a smart phone etc. What I think is as a corporate Giant you don't give away your secrets in a news conference unless it is a release or pre-release one.

If they had an OS that ran everything PC's/Printers/Laptops/Smart Phones/Tablets/Netbook's etc that HP makes you have a concentrated front over everyone like Apple does. The major plus here is HP is the largest singular manufacturer for computers alone in the US, then you throw in everything else they make (which is huge).

When looked at in this way and realizing HP is the largest singular production company period in one of the largest inducers of product development, and usage/adoption (the US) at least on the PC/computing device market this make total sense.

So in the end where Apple has a 10% worldwide PC market share HP probably has 40-50%. If they were running the own OS they would be competition for Google and Microsoft as well as sending Apple at least in this aspect (users running there hardware on there own OS) down ratings wise. This could be huge if it is done correctly, which with these statements he made seems like it very well may be!

Think about this ( http://www.engadget.com/2010/06/02/hp-zr30w-has-30-inches-of-ips-goodness-1-07-billion-colors-and?icid=sphere_blogsmith_inpage_engadget ) display, and then think about Google TV. You can also throw in one of those all in one display (touchscreen) computers. Then all running on HP's own OS just like Google and there Android TV announcement. You see what I am saying. Your home smart phone, TV, and Home/Mobile computers all run on one Linux OS. This also mean your connected or can be so to "YOUR" network 24/7. You wife gets home before you and messages you from the home TV, Laptop, her smart phone to yours to pick something up on the way home. You are 100% on the home personal network 24/7 and HP owns it all product wise. Not to mention that is one awesome HD display unit!

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AKwyn replied on Fri, Jun 4 2010 12:58 PM

From the ads that I've seen. It seems like HP is trying to make their products unique and artistic like they're trying to distance themselves from when they purchased Compaq and you know how that went. I also feel that with the intense competition from Apple, this purchase kind of makes sense, I can kinda imagine HP having their own OS like they did back in the 1970's. I don't know if he can deliver the promises that he could do with WebOS but I'm sorta entertained by the possibilities. I take a picture on my Palm Pre and I can either send it to my computer for storage or I could send it to a printer running WebOS for printing without even docking my phone on the printer.

I'm not a solid fan of either smartphone yet but I might be taking a look at Palm now that HP's bought it.

 

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So I guess that really is the end of palm. Even if that dabble in the smartphone biz I doubt it will be for long with that kind of attitude. Kinda sad they almost invented the market.

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rapid1 replied on Sat, Jun 5 2010 12:54 PM

One thing if you think about it HP/Compaq killed Palm initially anyway as there only real major competition in that market was the iPaq. So the IP's are very valuable to HP which I see as a great value myself. Then of course on top of that most of there recognized name acquisitions such as the Envy line etc stay around although under HP's definite management.

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