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  • Hewlett Packard Dumps webOS Devices as Company Flatlines Against Apple


    Hewlett Packard dropped a bombshell Thursday. The globe's largest PC maker is making headlines on a day where it's difficult to take anyone's eyes off of another major downward push for US equities and stocks around the world. Nonetheless, HP is shaking things up by announcing plans to "spin off its PC business."

    As it turns out, HP is effectively dumping its newly acquired webOS smartphone and tablet business. Why? HP is shifting its focus to software and related services. According to CNBC, Hewlett-Packard confirmed that it is in talks to buy British software company Autonomy for $10 billion.

    According to the WSJ:

    H-Pís tablet is the TouchPad, an iPad rival that went on sale in July starting at $499. Earlier this month, HP cut its price 20 percent. HP got webOS when it acquired Palm Inc. in April 2010 for $1.2 billion. H-P may license the webOS software to others.
    The news, however, shouldn't come as much of a surprise, especially since HP Chief Executive Officer Leo Apotheker, who became the boss last November, has gone on the record prior to today's report saying that he is interested in expanding his company's posturing in software and cloud services. Consequently, as Bloomberg noted, Hewlett Packard has been aiming to "lessen its dependence on PCs, where growth has stalled as consumers flock to smartphones and tablet-style computers like those made by Apple Inc."

    HP says it will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction.

    HP today also announced preliminary results for the third fiscal quarter 2011, with revenue of $31.2 billion compared with $30.7 billion one year ago.

    Sources: HP, WSJ, Bloomberg, CNBC
    This article was originally published in forum thread: Hewlett Packard Dumps webOS Devices as Company Flatlines Against Apple started by Michael Essany View original post
    Comments 21 Comments
    1. Mes's Avatar
      Mes -
      Nice write-up & analysis Michael.
    1. feidhlim1986's Avatar
      feidhlim1986 -
      HP winding down consumer level business and focusing on enterprise hardware and software more maybe?

      At least their revenue is up.
    1. unison999's Avatar
      unison999 -
      I hate speculations therefore I hate Michael Essany's posts.
      This is an aweful post, nothing in the post supports the header.

      I fail to see how HP WebOS devices flatline considering there is no sales figure given, even the revenue number shows increase compare to last year. At this economy right now and able to generate higher revenue how does that show the tablet is "flatlining" and HP is going to dump it?
      Going for software and related services somehow also means HP WebOS devices flatline? Expansion of their business means they are giving up another? Something they just recently bought?
      And I quote "Hewlett Packard has been aiming to "lessen its dependence on PCs, where growth has stalled as consumers flock to smartphones and tablet-style computers like those made by Apple Inc."" So how does this mean dumping WebOS device? To me it screams more WebOS devices in the future to replace the PC devices.
    1. CustomSS1's Avatar
      CustomSS1 -
      Quote Originally Posted by unison999 View Post
      I hate speculations therefore I hate Michael Essany's posts.
      ...
      Sod off man, go cry somewhere else
      If you don't like his news then don't read it.

      I however, like many more members, like what he writes. Therefore I wont mind him writing many more texts like this!
    1. unison999's Avatar
      unison999 -
      Quote Originally Posted by CustomSS1 View Post
      Sod off man, go cry somewhere else
      If you don't like his news then don't read it.

      I however, like many more members, like what he writes. Therefore I wont mind him writing many more texts like this!
      Then you tell me in his article he wrote how does:
      1. HP making $500 million more money than last year.
      2. HP diversify by buying software company.
      3. Decrease dependencies on computers shifting to smartphones and tablet like computers.
      Equals to dumping WebOS when all these indications means they should invest more especially #3 when smartphones and tablet like computer is dependent on WebOS???
      Not to mention I've been bombarded with HP tablet commercials when I watch TV, how is that an indication of dumping WebOS??
    1. trek-life's Avatar
      trek-life -
      Quote Originally Posted by unison999 View Post
      Then you tell me in his article he wrote how does:
      1. HP making $500 million more money than last year.
      2. HP diversify by buying software company.
      3. Decrease dependencies on computers shifting to smartphones and tablet like computers.
      Equals to dumping WebOS when all these indications means they should invest more especially #3 when smartphones and tablet like computer is dependent on WebOS???
      Not to mention I've been bombarded with HP tablet commercials when I watch TV, how is that an indication of dumping WebOS??
      Or you could accept that you don't like his post and not bother reading them.
    1. Mes's Avatar
      Mes -
      Relax unison999. Before continuing, I suggest a simple Google search "HP+dump+webOS"

      Please be kind and respectful of our members.

      Thank you.
    1. FeartheSpear's Avatar
      FeartheSpear -
      I actually could not agree more with unison999. Yahoo news pulls this stunt all the time where they make a profound statement and then provide a loosely appropriate story that barely resembles anything said in the headline.
    1. raduga's Avatar
      raduga -
      If you're hesitant to embrace the rumor-filled and notoriously speculative Google Search, you could always try the links Mike posted:

      Quote Originally Posted by Michael Essany View Post
      Sources: HP, WSJ, Bloomberg, CNBC
      "Flatline" is in fact Michael's own choice of words. I don't see any other articles that use this expression to describe HP's insurgent tablet market; but the fact that HP is unambigously baling out on a project they spent enormous capital promoting and developing- suggests something's amiss.

      Maybe the tablets aren't flatlining. Maybe they're selling really well, but HP just doesn't like money.

      _________________________

      Quote Originally Posted by unison999 View Post
      I hate speculations therefore I hate Michael Essany's posts.
      This is an aweful post, nothing in the post supports the header.

      I fail to see how HP WebOS devices flatline considering there is no sales figure given, even the revenue number shows increase compare to last year. At this economy right now and able to generate higher revenue how does that show the tablet is "flatlining" and HP is going to dump it?
      Going for software and related services somehow also means HP WebOS devices flatline? Expansion of their business means they are giving up another? Something they just recently bought?
      And I quote "Hewlett Packard has been aiming to "lessen its dependence on PCs, where growth has stalled as consumers flock to smartphones and tablet-style computers like those made by Apple Inc."" So how does this mean dumping WebOS device? To me it screams more WebOS devices in the future to replace the PC devices.
      check this:
      http://www.businesswire.com/news/hom...n-plc-Business

      Quote Originally Posted by HP's press release View Post
      In addition, HP reported that it plans to announce that it will discontinue operations for webOS devices, specifically the TouchPad and webOS phones. HP will continue to explore options to optimize the value of webOS software going forward.
    1. sziklassy's Avatar
      sziklassy -
      This is what threads become here. People ripping on the writers and then a group of people either backing them up or ripping on them in turn. When did 100% of the useful comments cease being?
    1. unison999's Avatar
      unison999 -
      Actually did a bit of search.
      HP spent $1.2 billion to buy the company, then dumped more money to develop WebOS. Sales figure ontop of the amount invested end up costing HP a not so spectacular quarterly report, caused HP to re-evaluate WebOS and consider licensing WebOS instead of continue developement on this product.
      Isn't this a bit more informative than the shot gun blast going all over the place post?

      Problem is not in the WebOS, it is in the management. Buying a company for $1.2 billion, spend even more money to developing something then decide to stop support for the whole thing... That just killed the whole WebOS, who wants to license HP themselves give up on? Who would want to buy HP tablet now since the WebOS is given up on? HP just flushed $1.2 billion down the toilet. By doing all this in such a public manner, it is not Apple that killed WebOS it is the HP management.
    1. spazturtle's Avatar
      spazturtle -
      Quote Originally Posted by sziklassy View Post
      This is what threads become here. People ripping on the writers and then a group of people either backing them up or ripping on them in turn. When did 100% of the useful comments cease being?
      When they redesigned the website, sadly the majority of the sites user left that day.
    1. zoso10's Avatar
      zoso10 -
      Quote Originally Posted by spazturtle View Post
      When they redesigned the website, sadly the majority of the sites user left that day.
      So true, I hardly ever post anymore in fear that I'm gonna get dragged into an argument... I just read the articles and move on
    1. iDeadman's Avatar
      iDeadman -
      Quote Originally Posted by sziklassy View Post
      This is what threads become here. People ripping on the writers and then a group of people either backing them up or ripping on them in turn. When did 100% of the useful comments cease being?
      When crybabies get computers. I mean seriously, if you don't like the posts then write your own and try your hand at a website. There's plenty of sites where I don't like the writers and guess what? I just don't go to those sites. I bet these crybabies are the same people who turn into FOX News everyday. Can we TRY to focus on the information provided instead of bashing the writers for christs sake?!

      Quote Originally Posted by zoso10 View Post
      So true, I hardly ever post anymore in fear that I'm gonna get dragged into an argument... I just read the articles and move on
      So true, so true. A damn shame
    1. MetallicaFan1991's Avatar
      MetallicaFan1991 -
      Quote Originally Posted by spazturtle View Post
      When they redesigned the website, sadly the majority of the sites user left that day.
      Yeh I used to be a really active member. Few times a day and commenting all the time.

      Since the redesign, MMi sucks, I come here like once every two weeks and even then I dont comment.
    1. SnowLeo's Avatar
      SnowLeo -
      They should license it to RIM and combine it with QNX and put that on a touchscreen phone with a slideout keyboard, only then will it be an adequete match to a Nokia Windows phone lol. Even if samsung makes a webos phone with nice hardware itd be no different than a windows phone woth nice hardware. I love so many aspects of webos more than iOS incluiding multitasking, but id much rather use the jailbreak solutions that mimic those elements such as multiflow, swipenav, protap, and that cydia tweak for rounding the screen corners for the 500,000 iphone apps compared to maybe 2000 webos apps.
      But seriously, Steve Jobs is gonna die exactly how he wanted to-- the Supreme king of the most powerful company in the world, lying in his death bed as he watches all of his largest competitors crumble under his all powerful wrath.
    1. delusion950's Avatar
      delusion950 -
      HP wasted money on Plam, they couldve used it to invest in their software and hardware
    1. ikesmasher's Avatar
      ikesmasher -
      yea...Im not sure if they have big heads or what, but all of these companies trying to design ipad rivals and it should be clear that they dont work and they wont. The apple products are way to popular.
    1. hapishyguy's Avatar
      hapishyguy -
      So it means that we will get more HP laptops for cheap since they want to get rid out of the stock...
    1. iPod's Avatar
      iPod -
      So HP got Palm only to completely fail with it and now they're selling it again. Smart.