Hewlett-Packard has made a surprise statement announcing it will stop making hardware for its WebOS platform, which it purchased from Palm. In the announcement, HP explained that it will discontinue operations for webOS devices, specifically the TouchPad and webOS phones.
However, HP has said that they will continue to look for partners to develop their webOS software, which HP acquired from Palm just over a year ago for $1.2 billion. This software was used on its TouchPad, Pre, Pixi, and Veer, which will all now be discontinued.
The Rise and Fall of webOS
The decision to halt hardware production for webOS devices marks a significant shift for HP. The webOS platform was initially seen as a promising competitor in the mobile operating system market, especially against giants like Apple’s iOS and Google’s Android. When HP acquired Palm, the tech community had high hopes that the company would leverage its vast resources to make webOS a formidable player. The TouchPad, Pre, Pixi, and Veer were all part of this ambitious plan. Unfortunately, despite the innovative features of webOS, such as its card-based multitasking and Synergy integration, the devices failed to gain significant market traction.
Several factors contributed to the downfall of webOS hardware. The market was already saturated with well-established competitors, and HP’s devices struggled to differentiate themselves. Additionally, the timing of product releases and marketing strategies did not align well with consumer expectations. The TouchPad, for instance, was launched at a time when the iPad had already solidified its dominance in the tablet market.
HP’s Strategic Shift
By dropping the webOS hardware, HP now hopes to cut its losses and concentrate on its enterprise and printer businesses. This strategic shift is aimed at refocusing the company’s efforts on areas where it has traditionally been strong. HP’s enterprise solutions and printer divisions have been consistent revenue generators, and the company believes that doubling down on these sectors will provide more stable and predictable growth.
Moreover, HP may even look to sell its Personal Systems Group (PSG), which is currently responsible for sales of its PCs and webOS devices. This potential sale could be part of a broader strategy to streamline operations and focus on core competencies. The PSG division has faced challenges in maintaining profitability amidst intense competition from other PC manufacturers and the declining demand for traditional PCs.
Despite the discontinuation of webOS hardware, HP’s commitment to finding partners to develop the webOS software indicates that the company still sees potential in the platform. By licensing the software to other manufacturers, HP hopes to keep webOS alive in some form. This approach could allow webOS to find a niche market or be integrated into other types of devices beyond smartphones and tablets.
In conclusion, HP’s decision to stop making hardware for its webOS platform reflects the company’s need to adapt to changing market dynamics and focus on its strengths. While the discontinuation of webOS devices is a setback, HP’s strategic shift towards its enterprise and printer businesses, along with the potential sale of its PSG division, could position the company for long-term success. The future of webOS remains uncertain, but with the right partnerships, it may still have a role to play in the tech ecosystem.
Source: PC World : Yahoo Finance
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