Why HP’s big bet on beleaguered Palm will flop

invisibleSHIELD case for iPad“Why is HP spending $1.2 billion on Palm?” Dan Frommer asks for Forbes.

“Not just to get into the fast growing smartphone industry, but to end its reliance on Microsoft Windows as the basis for its hardware gadgets,” Frommer writes. “This is an ambitious task, and could obviously have a big payoff if it’s successful. HP will invest hundreds of millions of dollars into the project, and will certainly make some noise.”

But the odds of this working are very low, and HP’s plan will probably not be successful,” Frommer writes. “The problem is that WebOS, despite its nice user interface and some nice technical qualities, is a failed platform. Consumers haven’t found a need to buy Palm devices instead of Apple or Android devices… And, as importantly, developers haven’t found a need to develop for WebOS, either. Without unique apps, there’s no reason to have a unique platform.”

Frommer writes, “So the odds are likely that HP’s big bet will be a flop, and that it’ll have to go crawling back to Windows or Android, whichever is the dominant consumer electronics platform in a few years.”

Full article here.

MacDailyNews Take: Oh, goody, we get to use our new quote already: “HP’s acquisition of Palm means that not only is HP sick and tired of being stuck with and dependent upon perpetual laggard Microsoft, but, more importantly, yet another smartphone/slate PC OS will live to confuse the market. This will significantly benefit the one company that has repeatedly proven its ability to distinguish itself above all others: Apple. The more confused the marketplace, the faster customers will flock to Apple’s trusted brand and quality products.” – MacDailyNews Take, April 28, 2010, 4:45pm EDT

39 Comments

  1. @Ampar

    “Rubinstein’s predecessor, Ed Colligan: “”We’ve learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They’re not going to just walk in.””

    If you take the statement as it reads (maybe not as intended) he is correct. No PC maker has yet made a decent phone.

    It took Apple the Mac maker to make a decent phone.

  2. There is potential in this acquisition it will really depend on how innovative HP can be.

    If they choose to come out with crap boring hardware and not fix some of the weaknesses of the WebOS (security, good dev SDK), then it will be a waste of time.

  3. @Ampar

    I gather that the original statement was directed at Apple, so I am not giving him credit for anything, merely using his words in a way he didn’t intend.

    After reading that comment so often on MDN I just needed to finally get that comment out.

    Thanks for the opportunity.

    I feel better now!

  4. I remember, not too long ago, when Jon Rubenstein, the tratorious mofo, was saying how the iPhone OS was too over weight and bloated and how thw WebOS was a better mobile OS. Well, now that that these OSes are being used for more than just phones, I argue that the WebOS is just too weak and a dollar short for a viable platform in the tablet market. I hope HP regrets every penny they spent on this shell of a company and I hope Rubenstein stays around to want the slow miserable death of WebOSto its final days. I ate traitorous bastards.

    As far as the IP goes, I don’t know how much time they have, but last I checked, they only last 17 years and Palm is no spring chicken. I hope Mark Hurd sticks around long enough to regret this purchase.

  5. HP Has been sick and tired of Micro$haft for quite a long time, and I believe would jump at the chance to be a licensee for OS X.

    HP desperately wants to differentiate it’s products, but in the land of Android and Micro$haft, that’s virtually impossible. That’s the reason I believe that Android will fail. Smart organizations will be driven to a more vertical model, because you just can’t make enough money paying for the OS.

    We’ll see if google continues to give it’s software away for free once it’s ad model either reaches maturation or it gets some serious competition from the likes of Apple, RIM, Nokia or Micro$haft. Let’s face it, there is some real money to be made in taking a piece of the Ad market, you could really use it to subsidize your hardware.

  6. Obviously HP is seeing future for the WebOS but where? Building printers and scanners with it? New IP phone system for corporations with cool interface and “porn on hold” feature?

  7. Those who think that HP have just bought a big warehouse full of Pres and Pixies are thinking way too small. And those who are thinking that HP will just stick WebOs inside a HP branded phone are also thinking way too small. If you’re thinking about a possible tablet running WebOs, I think you’re still thinking WAY too small.

    I’m thinking this way. HP could do an Apple! They don’t just buy an OS and stick it inside some box. They take their new acquisition and reengineer it as the basses of a whole new OS. One which is very vertically scaleable, addresses all of the problems (security etc) of WebOS, adds a huge dollop of new features and functionality as well as an excellent SDK and some killer API’s.

    Bye bye NextStep hello OSX!
    Bye bye WebOS hello ??????

    Something which just like OSX works on a cell, can power a tablet, a netbook, a home entertainments/media system, even a basic laptop or desktop compute,r but has no legacy hardware that it needs to support.

    HP haven’t just bought a cellphone company. If they do this right they’ve just stepped up to the starting line of the race for the mobile computing age. Apple are already up and running and out in the lead. Google are going but running behind (you can debate how far behind amongst yourselves). HP just stripped their tracksuit off and are warming up (let’s hope they don’t pull a muscle) and Microsoft are still in the changing rooms trying to convince the officials that a Table running Win 7, IS a mobile device.

  8. I think this os the day Palm the company, the brand and the technology dies. If would have liked to see Palm make it on their own. But one interesting thing would be if HP ported WebOS to other devices like a Tablet. Don’t know how that would so in the market but surly it would interesting to see.

  9. Microsoft are still in the changing rooms trying to convince the officials that a Table running Win 7, IS a mobile device.]

    Big Ass Table, on a dolly, is a mobile device.
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