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The Shape Of Things To Come: HP Breaks Rank

May 03, 2010, 21:34 (0 Talkback[s])
(Other stories by Robin Bloor)

"Set aside the fact that HP paid $1.2 billion. The price is not the issue. Either HP needs to be in this business or it doesn't. It is already in the business. It sells Windows Mobile handset But that's a "hobby" in Steve Jobs' terminology. And with the acquisition of Palm, mobile is no longer a hobby for HP. HP has decided it has to be a player in the business, and imho, it is right on the money. In fact, it's pretty much force majeur. The gipsy with the crystal ball can't see a future for HP without a mobile platform.

"A Platform To Stand On

"Look at HP in perspective. In the past 5 years or so it has done some things well and some things badly. But there is no argument that it revived its PC business in the face of fierce competition from Dell, Acer, Lenovo et al. And the HP guy most responsible for reviving the PC business is Todd Bradley, who in his previous incarnation was in charge of hardware at Palm.

"Todd knows exactly what HP is buying and probably has a good idea of where Palm thought it was going. But Palm was derailed. It launched the Pre last year to great fanfare and much critical acclaim. But the praise didn't morph into market share. Consumers shrugged – and they have continued to shrug. So Palm put itself up for sale – following a poor set of quarterly figures in March, where targets were missed by a mile or more. HP has stepped in swiftly, beating off Lenovo in the process, so it is rumored."

How quickly they forget-- Palm's WebOS is Linux-based --ed.</>

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