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

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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.

Jane McEntegart
27 Comments Comment from the forums
  • polly the parrot
    HP: Just go die. Nobody wants you.
    Reply
  • dxwarlock
    Instead they want to put WebOS on pretty much every small form factor web-connected device they make. Poor Palm.

    no...poor future customers
    Reply
  • IFLATLINEI
    They got ripped off.
    Reply
  • sliem
    "...That is a very value proposition."

    A very what?
    Reply
  • back_by_demand
    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.
    Reply
  • drutort
    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
    Reply
  • Honis
    They've already clarified the statement:
    http://www.engadget.com/2010/06/03/hp-says-its-in-the-smartphone-market-after-all/
    Reply
  • thrust2night
    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.
    Reply
  • eddieroolz
    Hmm. I still think HP can do decently well if they would put some effort into developing a smartphone.
    Reply
  • 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.
    Reply