Analyst: HP is Going to Bet the Farm on Second Smartphone/Tablet Push
September 28, 2012 5:27 PM
comment(s) - last by
HP reportedly is poised to reenter a market it abruptly quit
Jeffries analyst Peter Misek made some surprising claims in a recent research note. He writes, "[W]e believe HP will aggressively attack the smartphone and tablet markets, which we believe are risky investments."
After failing with its acquisition of Palm and subsequent goodwill and inventory write-offs totaling $3.3B, recent comments from HP management point to a retargeting of tablets and smartphones. While the move makes sense strategically, we see it as a high risk move. On top of adding costs and working capital burdens to an already stressed balance sheet, there could be additional write-offs. We note that to date almost all PC OEMs have failed to gain significant traction in consumer tablets/smartphones.
Of course Mr. Misek has made some controversial predictions that he's been flat-out wrong about in the past -- such as his claim that phonemaker Research in Motion, Ltd. (
) would post a big fiscal Q2 2013 fiscal miss (instead RIM handsomely beat analyst outlook, post a smaller than expected loss).
some supporting evidence
, though, for this claim. New Hewlett-Packard Comp. (
CEO Meg Whitman
Fox Business Network
, "We have to ultimately offer a smartphone because in many countries of the world that would be your first computing device. We are a computing company."
The HP chief rejected rumors of a RIM purchase, commenting, "No, that is not a direction that we're going to head."
HP's first mobile effort ended in a (largely) self-inflicted trainwreck. [Image Source: IntoMobile]
But the real question, if this idea of a smartphone push is true is what direction HP
going to head in. The most logical option would perhaps be
Windows Phone 8
] handset, given its strong relationship with Microsoft Corp. (
). Google Inc.'s (
) Android is also a possibility.
But those with fond memories of webOS, don't get your hopes up for a comeback tour. Much of HP's webOS staff has
jumped shipped to Google
in recent months. Only a barebones skeleton crew has continued on working open-sourcing the webOS code. Given how outdated the code base is, and the lack of experienced personnel a revival of webOS seems the least likely scenario.
flippant treatment of webOS
, and thus is pertinent to the risk assessment. If there is one thing Mr. Misek is for sure right about it's that an HP smartphone and tablet push is high risk. After all it tried once and
quickly pulled the plug
This article is over a month old, voting and posting comments is disabled
RE: Every computing company needs to get into phones and tablets
9/29/2012 3:11:06 AM
The lack of intelligent and relevant comments on this post is amazing.
The news post stated that HP would probably go Windows 8 (though it did say "Windows Phone 8" even though Microsoft is trying to drop the phone part). If not win 8 then probably Android, so the point is HP is going to fit right in with "Android and now Microsoft" as it will be using both (though I think it strange you said Android instead of Google, since you said Apple instead of iOS and Microsoft instead of Windows.
At this point WebOS is dead to all but the enthusiast. HP will probably keep it around for use on its printers, and they may even make their upcoming phones and tablets so they can run the OS (though you will probably have to manually switch the OS). Other then that HP will continue to sell Windows 8 devices (servers, desktops, laptops, with tablets and phones in the future).
As for managment, HP had a pretty good CEO who made some bad life choices, so HP canned him. They then brought in a CEO who they should have fired within 24 hours of his announcing the dissolution of their hard ware side (but what to rich people know about running a company). They then brought in a new CEO who has proven successful at other companies and considering she inherited a sinking ship, is doing a very good job bringing things back in line. While it is too soon to make any absolute judgments, Meg Whitman seems to be doing great things with HP's resources.
I think it is also important to note that HP has been making touch enabled all-in-ones and tablet laptops for years before apple entered the mobile phone market. To me this implies that they are veterans at this type of thing. Throw in their patents and the ones they picked up from Palm and they will be a force to be reckoned with.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
HTC Hedges Android Bet With Colorful New Windows Phones
September 19, 2012, 2:42 PM
HP CEO: "We Have to Ultimately Offer a Smartphone"
September 14, 2012, 12:24 PM
Nokia Officially Announces 4.3" Lumia 820; 4.5" Lumia 920 w/PureView, Wireless Charging
September 5, 2012, 10:21 AM
Samsung Announces 4.8", Aluminum-bodied Windows Phone 8 Device
August 29, 2012, 11:55 AM
Microsoft Announces Windows Phone 8, Won't Support Current Handsets
June 20, 2012, 12:35 PM
Quick Note: Apple Watch to Get Brick and Mortar Boost From Best Buy
July 27, 2015, 3:00 PM
Can HTC Save Its "RE Grip" Smartband After Its Inexplicable Failure Launch?
July 17, 2015, 2:29 PM
Facebook's "Moneypenny" is Cross Platform Siri on Steroids
July 15, 2015, 3:59 PM
Apple Watch Sales Have Plummeted
July 8, 2015, 5:01 PM
Consumer Reports: Galaxy S6 and iPhone 6 Can't Keep Up w/ Galaxy S5
July 6, 2015, 4:57 PM
Apple iOS 8.4 Rolls Out w/ Fix to Crash-Causing Unicode Text
June 30, 2015, 3:24 PM
Most Popular Articles
Microsoft July 29 Windows 10 Launch: Freebies, Rollout, and What's Next
July 21, 2015, 2:40 PM
As iPad Sales Wane and Watch Flops, iPhone Saves Apple's Profit With Its Heroics
July 22, 2015, 6:13 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Google Scores Bizarre Court Win as Disgruntled Android Users' Lawyers Ruin Case
July 16, 2015, 5:58 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information