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HP: We Didn't Buy Palm to be in the Phone Market

By - Source: Tom's Hardware US

HP surprised everyone when it swooped in and purchased Palm for more than $1.2 billion. However, despite dropping more than a couple of pretty pennies on the smartphone company, it seems HP isn't even interested in that side of Palm.

When HP announced that it would be purchasing Palm, a lot of people speculated that the company didn't give a toss about smartphones and was actually much more interested in Palm's WebOS operating system. Indeed, it seems they were right. HP boss Mark Hurd just yesterday revealed to investors that he "didn't buy Palm to be in the smartphone business." Hurd went on to say that it just doesn't make sense for HP to spend billions of dollars trying to break into the smartphone business.

So what does Hurd want with Palm? Its IP, of course!

We didn’t buy Palm to be in the smartphone business. And I tell people that, but it doesn’t seem to resonate well. We bought it for the IP. The WebOS is one of the two ground-up pieces of software that is built as a web operating environment…We have tens of millions of HP small form factor web-connected devices…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 value proposition.

Basically, HP dropped more that a billion dollars to buy Palm but doesn't really care about smartphone. Instead they want to put WebOS on pretty much every small form factor web-connected device they make. Poor Palm.

Read more on ZDNet.

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Top Comments
  • 11
    sliem , June 4, 2010 5:41 AM
    "...That is a very value proposition."

    A very what?
Other Comments
  • -9
    polly the parrot , June 4, 2010 5:29 AM
    HP: Just go die. Nobody wants you.
  • 2
    dxwarlock , June 4, 2010 5:29 AM
    Quote:
    Instead they want to put WebOS on pretty much every small form factor web-connected device they make. Poor Palm.


    no...poor future customers
  • 9
    IFLATLINEI , June 4, 2010 5:35 AM
    They got ripped off.
  • 11
    sliem , June 4, 2010 5:41 AM
    "...That is a very value proposition."

    A very what?
  • 0
    back_by_demand , June 4, 2010 5:52 AM
    But will the smartphone part of Palm continue to run as an ongoing concern?

    If so will having the financial backing of HP allow it to put more into R&D and seriously compete with the HTCs, Samsungs, Apples and Androids of the world?

    As long as the smartphone side runs at a profit I think HP would be unwise to allow it.
  • 0
    drutort , June 4, 2010 6:01 AM
    now it makes more sense why some of the Palm guys had left, which we probably dont know about... esp those that deal specifically on areas with the smartphone and would be useless to what plans HP has for the Palm acquisition
  • 1
    Honis , June 4, 2010 6:04 AM
    They've already clarified the statement:
    http://www.engadget.com/2010/06/03/hp-says-its-in-the-smartphone-market-after-all/
  • 6
    thrust2night , June 4, 2010 6:20 AM
    We bought them because we like spending money for no reason. We plan on of-setting this cost by raising the prices of our (already expensive) ink cartridges by 50 percent.
  • 3
    eddieroolz , June 4, 2010 6:24 AM
    Hmm. I still think HP can do decently well if they would put some effort into developing a smartphone.
  • -1
    anonymous@guest , June 4, 2010 7:40 AM
    This seems incredibly short-sighted to me. The Smartphone business is one of largest tech market sectors and is continuing to grow. HP is already in the smartphone market (iPaq), purchased a company that has been in the smartphone business longer than anyone (Palm), and acquired what is widely regarded as a truly competitive smartphone OS that some would argue is the best on the market (WebOS).

    It really doesn't maket sense to me to buy WebOS just so they can use it on their printers and tablets. I mean, what else can they put it on ? The MP3 ship has sailed, HP already dropped their digital camera division, and WebOS is never going to take over Windows on laptops and desktops.
  • 0
    feeddagoat , June 4, 2010 8:23 AM
    I wouldn't be surprised if they still had a stab at the smartphone market. If they still plan a tablet PC of some sorts then getting the IP was worth the money over their first idea to use win7. If a tablet PC still emerges and is successful, they would be foolish not to use some of those aquired assets not to have a go. What i've found is what companies say and what they do are two different things. Could be a simple smokescreen for what ever reason such as owning rights to certain patients.
  • 0
    orionantares , June 4, 2010 8:36 AM
    Probably the only way we'll see webOS phones is if HP licenses the OS out to a smartphone company. I doubt that will happen though it would be a nice improvement if RIM did.
  • 0
    anonymous@guest , June 4, 2010 8:43 AM
    how about reviving BeOS?
  • -2
    tipoo , June 4, 2010 9:18 AM
    sliem"...That is a very value proposition."A very what?


    A very value. Like a coke bottle?
  • 2
    anonymous@guest , June 4, 2010 11:18 AM
    they just have to do the reverse of what apple did, release the webOS slate, then shrink it down and call it the SlateXS viola instant smartphone
  • 0
    anonymous@guest , June 4, 2010 11:27 AM
    Andy Grove at Intel had a philosophy that you must be number one or number two to make money in any market. Let's see, iPhone, Droid and Win7 are already leaders (rank them yourself as this is a contentious mess of which platforms and volumes), however, it would seem HP has wasted $1.2 Billion dollars on Palm. I thought Carly was the last dumb ass at HP? Did Hurd go to the same school?
  • 0
    dEAne , June 4, 2010 3:49 PM
    Yes I believe HP will do more that a WebOS, theirs lots of things on that. . .
  • -2
    Deadfred , June 4, 2010 4:06 PM
    Hey HP, my team of developers would have written a WebOS for far less than 1.2 billion dollars and it would have one important factor over Palms product. It would have worked without crashing every time you try to use it. What a tremendous waste of money. BTW: I have this bridge for sale....
  • 0
    jitpublisher , June 4, 2010 8:33 PM
    DeadfredHey HP, my team of developers would have written a WebOS for far less than 1.2 billion dollars and it would have one important factor over Palms product. It would have worked without crashing every time you try to use it. What a tremendous waste of money. BTW: I have this bridge for sale....


    Wake up, it's not just about having AN IP, it's about having THE IP. So they got the goods and eliminated a piece of the competition in one full swoop.
  • 1
    eccentric909 , June 4, 2010 8:50 PM
    DeadfredHey HP, my team of developers would have written a WebOS for far less than 1.2 billion dollars and it would have one important factor over Palms product. It would have worked without crashing every time you try to use it. What a tremendous waste of money. BTW: I have this bridge for sale....


    That's odd, my Palm WebOS phone has never crashed once. I don't think you actually know what you're talking about.
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