HP: We didn't buy Palm to be in the smartphone business

Posted:
in iPhone edited January 2014
Hewlett-Packard chief executive Mark Hurd said today his company didn't buy Palm to enter the smartphone business, but rather plans to use its technology to power "small form factor web-connected devices."



The comments, reported by ZDnet were made at Bank of America Merrill Lynch technology conference.



Hurd said HP isn?t going to "spend billions of dollars trying to go into the smartphone business. That doesn?t in any way make any sense. We didn?t buy Palm to be in the smartphone business."



Hurd added, "and I tell people that, but it doesn?t seem to resonate well. We bought it for the IP [intellectual property]. The webOS is one of the two ground-up pieces of software that is built as a web operating environment."



One of two web operating environments



Apart from Palm's webOS, Hurd likely had in mind Google's Chrome OS, which similarly acts as an extended web browser capable of running Rich Internet Apps authored in web standards. Other mobile operating systems are based on a Java Virtual Machine, such as RIM's BlackBerry OS or Google's Android; provide a conventional native environment for apps like Symbian or iPhone OS; or rely on a middleware platform like Microsoft's upcoming Windows Phone 7, based on a mobile version of Silverlight.



Focusing on a web-based operating environment, Hurd referenced the "tens of millions of HP small form factor web-connected devices" and said, "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 [attractive] value proposition."



HP's comments may provide some cover for Microsoft's Windows Mobile, which appeared to be rejected by HP in favor of new Palm webOS phones. HP may likely continue to sell Windows Mobile devices, although it is not a significant vendor of smartphones.



However, HP is rumored to be working toward mobile handheld devices that use a form of the webOS, pitting them against not just Google's Chrome OS, but also Windows 7, which Microsoft has been working to install on netbooks and more recently Slate PCs (like the now discontinued one HP demonstrated on stage at CES next to Microsoft shortly before Apple unveiled its iPad).



Where will HP's webOS enter the market?



If HP is indeed uninterested in pushing into the smartphone realm, it also means there will be one less competitor in Apple's iPhone market, currently dominated by RIM's BlackBerry (in North America) and Nokia's Symbian (globally), and facing new competition from Android and potentially even Windows Phone 7 later this winter.



However, depending on what HP means by "web connected devices," webOS may show up as part of an enterprise push into mobile tablets, currently a market Apple has captured for itself. Google's tablet strategy is currently fractured between Android and its upcoming Chrome OS, while Microsoft is similarly working to find some viable mix of Windows 7 and "Windows Embedded Compact 7" (the company's most recent name for Windows CE, the core operating system underneath the Zune HD and Windows Phone 7).



Asus just announced its "Eee Pad" as a competitor to Apple's iPad, but it won't be ready until at least the beginning of 2011. Versions of the device will run either Windows 7 or Windows Embedded Compact 7. Whether HP will also enter the market with consumer-focused tablets remains to be seen, but it appears that Palm's webOS is now dead as a smartphone platform.
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Comments

  • Reply 1 of 51
    masternavmasternav Posts: 442member
    they'd better ramp up the SFF IAD ASAP and cover themselves with MS PDQ!





    (small form factor)(internet application device)
  • Reply 2 of 51
    sheffsheff Posts: 1,407member
    This means WebOS tablet is on the way. One problem with that though is that Andoid and Chrome OS will come out with a tablet about the same time HP will be able to crank out their own. This may not have been the best choice for HP, but at least they can use the WebOS team to try to come up with a Sense-like UI for the Android powered tablets.
  • Reply 3 of 51
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by AppleInsider View Post


    Hurd said HP isn?t going to "spend billions of dollars trying to go into the smartphone business. That doesn?t in any way make any sense. We didn?t buy Palm to be in the smartphone business."



    It made sense to Apple and now it's their most profitable product category. But, I'm glad to see HP isn't just doing something because others can do it.



    They're well managed so I expect they will trim any fat they can and come out ahead with WebOS products. I doubt they'll break any paradigms, but that's part of HP's corporate success.
  • Reply 4 of 51
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by sheff View Post


    This means WebOS tablet is on the way.



    Maybe, but this is an incredibly stupid thing for them to say. As Apple has shown, having a large installed base of apps and developers is a big help in getting acceptance of the tablet.



    HP just told the developers and customers that it doesn't want them. So by the time they get around to releasing the tablet, they'll have lost a lot of their customers.



    Besides, why would it cost them billions of dollars to get into the smartphone business? I thought Palm was already in the smartphone business.
  • Reply 5 of 51
    anantksundaramanantksundaram Posts: 20,404member
    Could be strategic FUD. They are finally learning from the master.......
  • Reply 6 of 51
    macdanboymacdanboy Posts: 39member
    HP better work on the quality of their products first. With a 3 year failure rate of over 27% for their laptops, I can only imagine that hardware will be the biggest disappointment regardless of what OS they go with. Give up HP and continue to supply Walmart with the $399 wonder boxes that I get to replace with real hardware within 15 months of purchase.
  • Reply 7 of 51
    myapplelovemyapplelove Posts: 1,515member
    tell us something we don't know hp... yawn...



    I just wonder how since you knew what piece of crap your slate was (the product of supposed intense research in you Bristol laboratory) with windows why you leaked those specs comparisons to the ipad, to profess it's supposed superiority to pc morons at engadget....



    In any case nice to see the good people at hp thinking of transitioning from snake oil salesmen to actual product delivery. Too bad that when they do enter the market 80-90% of it will consist of the ipad. That's the cost of not having any balls to innovate for years on end and just sitting like ducks assembling parts and sticking in windows to them and having the cash flow in.
  • Reply 8 of 51
    mdriftmeyermdriftmeyer Posts: 7,503member
    Quote:
    Originally Posted by solipsism View Post


    It made sense to Apple and now it's their most profitable product category. But, I'm glad to see HP isn't just doing something because others can do it.



    They're well managed so I expect they will trim any fat they can and come out ahead with WebOS products. I doubt they'll break any paradigms, but that's part of HP's corporate success.



    It made sense because the state of smart phones, before the iPhone, were not impressive.



    Now, the world has major battles with highly competitive products.



    There is only the iPad and half-ass tablet PCs to compete against and they want to be the second major entry into that space--good for HP.
  • Reply 9 of 51
    dluxdlux Posts: 666member
    This is supposedly from the same interview:



    "It isn't precisely ... a smartphone play," he said in the transcript. "All the way from a purely voice product up through a smartphone capability through a tablet through a notebook ... that's where we expect to go."





    I can't find the original article (at least on pcmag.com) but this is where I read that:



    http://www.precentral.net/hp-ceo-we-...#comment-95031



    Needless to say, the Palm/WebOS fans are quite stirred up by this, and I can't say I blame them.
  • Reply 10 of 51
    they went into this much trouble acquiring palm just to rip off apple? ...
  • Reply 11 of 51
    docno42docno42 Posts: 3,755member
    Confirms what I suspected - they bought it as a UI for their printers.



    Next thing you know they will be declaring the tablet is a "hobby"...
  • Reply 12 of 51
    Quote:
    Originally Posted by DocNo42 View Post


    Confirms what I suspected - they bought it as a UI for their printers.



    Next thing you know they will be declaring the tablet is a "hobby"...



    Not just printers.

    Home servers

    Digital photo frames

    PDAs

    Tablets
  • Reply 13 of 51
    dr millmossdr millmoss Posts: 5,403member
    Quote:
    Originally Posted by doyourownthing View Post


    they went into this much trouble acquiring palm just to rip off apple? ...



    You mean compete with Apple? The big news here is that HP is trying to put some daylight between themselves and Microsoft, and they aren't running to embrace Google to do it.
  • Reply 14 of 51
    cvaldes1831cvaldes1831 Posts: 1,832member
    Hurd is alert enough to know that the smartphone market can't realistically support six platforms (iPhone, RIM, Symbian, Android, webOS, Windows Mobile/Phone). That's a fight they're not going to win at this time.



    Palm webOS has a chance at succeeding as a tablet/handheld device OS since RIM and Symbian aren't actively competing.
  • Reply 15 of 51
    dick applebaumdick applebaum Posts: 12,527member
    Quote:
    Originally Posted by sheff View Post


    This means WebOS tablet is on the way. One problem with that though is that Andoid and Chrome OS will come out with a tablet about the same time HP will be able to crank out their own. This may not have been the best choice for HP, but at least they can use the WebOS team to try to come up with a Sense-like UI for the Android powered tablets.



    I suspect that HP/Palm can focus better than Google Android. It sounds like HP has a Tablet strategy, with hardware and OS in some stage of development... I don't see that from Google.



    Balls to the wall, HP could deliver a tablet this year, in time for Christmas (consumer) and in time for budgeting (enterprise)



    I like their chances!



    .
  • Reply 16 of 51
    -ag--ag- Posts: 123member
    Quote:
    Originally Posted by cvaldes1831 View Post


    Hurd is alert enough to know that the smartphone market can't realistically support six platforms (iPhone, RIM, Symbian, Android, webOS, Windows Mobile/Phone). That's a fight they're not going to win at this time.



    Palm webOS has a chance at succeeding as a tablet/handheld device OS since RIM and Symbian aren't actively competing.



    Most markets. We are usually given 2 choices.



    Its either them or us.

    (and by markets it can mean anything from fast food, to political parties, to computers).



    The reason for this is that after a while other companies come into the market and stir things up and decide they want a piece of the pie.



    Suddenly the market is awash with choice.



    But its not sustainable.



    Its basic human nature that we will follow the stronger of the multitude of companies out there.



    In some cases even if they do not have the greatest of intentions.



    Eventually whittling it down to the 2 major players like we had before the boom.



    its one of the reasons we have the Mac vs PC argument and not Mac vs PC vs Linux (x7 common variants) vs Sun vs UNIX etc etc etc
  • Reply 17 of 51
    kilimanjarokilimanjaro Posts: 192member
    Quote:
    Originally Posted by AppleInsider View Post


    Hewlett-Packard chief executive Mark Hurd said today his company didn't buy Palm to enter the smartphone business, but rather plans to use its technology to power "small form factor web-connected devices."



    Hurd said HP isn?t going to "spend billions of dollars trying to go into the smartphone business. That doesn?t in any way make any sense. We didn?t buy Palm to be in the smartphone business."



    Holy cow..!

    HP is actually have plans to use webOS..!

    Hopefully they'll make webOS powered tablets with design similar to their Envy laptops, now that'll rock somebody's boat at Cupertino.. LOL
  • Reply 18 of 51
    kilimanjarokilimanjaro Posts: 192member
    Quote:
    Originally Posted by Dlux View Post


    Needless to say, the Palm OS fans are quite stirred up by this, and I can't say I blame them.



    I believe what you're trying to say is: "Palm fans", because truth to be told Palm OS is dead.. Palm has stopped supporting its old OS when the company announced the new webOS.



    Yeah Palm fans should get excited about this, since it's a shame that Palm can't make more webOS powered devices other than the Pre and Pixi. With HP's cash and business prowess, there is more possibility to see webOS powered devices in the future..
  • Reply 19 of 51
    dluxdlux Posts: 666member
    Quote:
    Originally Posted by kilimanjaro View Post


    I believe what you're trying to say is: "Palm fans", because truth to be told Palm OS is dead.. Palm has stopped supporting its old OS when the company announced the new webOS.



    Yeah, I meant to write 'WebOS'. Original post corrected.
  • Reply 20 of 51
    nvidia2008nvidia2008 Posts: 9,262member
    Quote:
    Originally Posted by kilimanjaro View Post


    Holy cow..!

    HP is actually have plans to use webOS..!

    Hopefully they'll make webOS powered tablets with design similar to their Envy laptops, now that'll rock somebody's boat at Cupertino.. LOL



    Envy is nice but it's too stupidly priced for average users to consider... They might as well buy a Mac with those Envy prices! WTF
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