HP has just released its latest financial reports, and included in the reports is how much webOS actually cost the company, which is a massive $3.3 billion. This figure includes the purchase price of Palm and also the running costs of producing the HP TouchPad tablet, which was sold off for $200.
The Financial Impact of webOS
The $3.3 billion expenditure on webOS is a significant financial burden for HP. The acquisition of Palm in 2010 was initially seen as a strategic move to enter the competitive mobile operating system market. However, the subsequent development and marketing of the HP TouchPad tablet did not yield the expected returns. The TouchPad was launched in July 2011 but faced stiff competition from established players like Apple’s iPad and various Android tablets. Despite HP’s efforts, the TouchPad struggled to gain market traction, leading to its discontinuation just a few months later in August 2011.
The financial reports highlight not only the purchase price of Palm but also the ongoing operational costs associated with webOS. These costs include research and development, marketing, and production expenses. The decision to sell the TouchPad at a heavily discounted price of $200 was a last-ditch effort to clear inventory, but it further added to the financial losses.
Potential Buyers for webOS
It also looks like HP is looking to sell webOS, and a number of companies have been rumored to be interested in purchasing webOS from HP. However, it is unlikely that they will get anywhere near what they paid for Palm and webOS. The market for mobile operating systems is highly competitive, and webOS, despite its innovative features, has struggled to find a foothold.
One of the companies rumored to be in talks with HP to buy webOS is Intel. Although as yet it isn’t clear what plans Intel would have for webOS if they managed to buy it from HP, there are several possibilities. Intel could potentially integrate webOS into its own hardware products, such as tablets or hybrid devices, to create a more seamless user experience. Alternatively, Intel might leverage webOS’s technology for use in other areas, such as smart home devices or automotive systems.
Other companies that have been speculated to show interest include tech giants like Google and Amazon. Google could potentially use webOS to enhance its Android ecosystem or to develop new features for its Chrome OS. Amazon, on the other hand, might see webOS as a way to bolster its Kindle Fire tablet lineup or to expand its presence in the smart home market.
Despite the interest from these companies, the challenge remains for HP to find a buyer willing to invest in a platform that has not yet proven its commercial viability. The sale of webOS would mark the end of HP’s foray into the mobile operating system market, a venture that has been fraught with challenges and financial losses.
Source TechCrunch, Slashgear
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