HP Kills Off TouchPad, WebOS, and PC Division

[T-Rexx]

In a stunning development today, Hewlett Packard announced the end of its TouchPad tablet computer and every WebOS phone in production or planned. In short, HP is discontinuing support for ALL WebOS devices.

“Our WebOS devices have not gained enough traction in the marketplace with consumers. Continuing to execute our current device approach in this space is no longer in the interest of HP or its shareholders."

-Leo Apotheker, HP CEO

HP is considering licensing WebOS out to other hardware manufacturers as an alternative to Android and Windows Phone 7, but no specific plan to do so has been announced. WebOS has been struggling in the marketplace, with just 1.3% share of smartphones in the USA in August. HP acquired WebOS with its purchase of Palm for $1.2 billion just over a year ago.

In another stunning announcement today, CEO Leo Apotheker indicated his intention to end HP's manufacture of personal computers. Apotheker said he wants either to sell HP's PC division or spin it off as a separate company within the next 12 to 18 months. HP has been the world's largest PC maker for several years. The move is seen as an admission that its acquisition of Compaq in 2002 has not been successful.

HP appears to be following the lead of IBM out of the PC hardware business and into software services. IBM sold its PC business to Lenovo in 2005, a move which proved very profitable for IBM. Consistent with HP's refocusing of efforts on software, the company made a third important announcement today - it intends to acquire UK business software developer Autonomy for $10 billion.

HP does intend to hang onto its printer business, however.




http://www.wired.com/gadgetlab/2011/08/hp-webos-tablet-touchpad/

http://news.cnet.com/8301-1001_3-20094310-92/this-day-in-tech-hp-saying-goodbye-to-webos-pc-unit

http://www.nytimes.com/2011/08/19/technology/hp-plans-big-shift-toward-business-customers.html

 

[maxpowr9]

The only decent product HP made was their printers and they at least know that. Their desktops were mediocre at best and their laptops are not bad but they are getting reamed by other "low tech" Asian brands like Asus. They tried to go high tech and there is pretty much no market for those kinds of laptops.

 

[JB3]

In a stunning development today, Hewlett Packard announced the end of its TouchPad tablet computer and every WebOS phone in production or planned. In short, HP is discontinuing support for ALL WebOS devices.




HP is considering licensing WebOS out to other hardware manufacturers as an alternative to Android and Windows Phone 7, but no specific plan to do so has been announced. WebOS has been struggling in the marketplace, with just 1.3% share of smartphones in the USA in August. HP acquired WebOS with its purchase of Palm for $1.2 billion just over a year ago.

In another stunning announcement today, CEO Leo Apotheker indicated his intention to end HP's manufacture of personal computers. Apotheker said he wants either to sell HP's PC division or spin it off as a separate company within the next 12 to 18 months. HP has been the world's largest PC maker for several years. The move is seen as an admission that its acquisition of Compaq in 2002 has not been successful.

HP appears to be following the lead of IBM out of the PC hardware business and into software services. IBM sold its PC business to Lenovo in 2005, a move which proved very profitable for IBM. Consistent with HP's refocusing of efforts on software, the company made a third important announcement today - it intends to acquire UK business software developer Autonomy for $10 billion.

HP does intend to hang onto its printer business, however.




http://www.wired.com/gadgetlab/2011/08/hp-webos-tablet-touchpad/

http://news.cnet.com/8301-1001_3-20094310-92/this-day-in-tech-hp-saying-goodbye-to-webos-pc-unit

http://www.nytimes.com/2011/08/19/technology/hp-plans-big-shift-toward-business-customers.html

The bolded part is news to me. In all of the coverage from today, I did not see anything saying the Compaq acquisition was a failure, and that's why they want to exit manufacturing.

What I HAVE seen, though, is that the reason HP wants to offload their manufacturing arm is because it is low profit margin, and resource heavy. It isn't that business is bad, or even that HP isn't doing alright. Its that their management team feels that the best move for the company is to focus 'HP Proper' on enterprise and software instead of hardware.

 

[JB3]

The only decent product HP made was their printers and they at least know that. Their desktops were mediocre at best and their laptops are not bad but they are getting reamed by other "low tech" Asian brands like Asus. They tried to go high tech and there is pretty much no market for those kinds of laptops.

That's not the issue. Their computers sell well, as evidenced by HP's size and sales. They just don't result in a lot of profit for the company.

 

[wonderwort]

HP heavily promoted TouchPad........

I can believe that they are dropping it.

 

[TriBi]

Have used HP printers for quite some time. Would never have considered one of their computers/notebooks. Seems the marketplace thinks the same way and they have accepted that.

 

[maxpowr9]

That's not the issue. Their computers sell well, as evidenced by HP's size and sales. They just don't result in a lot of profit for the company.

You look YtY and their sales are marginally worse in their computer division. The only thing that is bolstering their sales is corporate and education sales since everybody hates Dell and Lenovo isn't that hot anymore.

 

[T-Rexx]

The bolded part is news to me. In all of the coverage from today, I did not see anything saying the Compaq acquisition was a failure, and that's why they want to exit manufacturing.

You are correct that the failure of the HP-Compaq merger is old news. That's why Carly Fiorina (who arranged that deal) was kicked out of the company in 2005, of course.

It's interesting that HP continued to try to make that merger work for so long, before finally giving up on the PC business.



http://tech.fortune.cnn.com/2011/08/18/h-p-spinoff-carlys-final-goodbye/?section=magazines_fortune

http://www.scribd.com/doc/37037239/Hp-Compaq-A-Failed-Merger

http://knowledge.wharton.upenn.edu/article.cfm?articleid=1053

 

[cityboy-stl]

^ Ha! That is what I was going to say. This is the end result of Carly Fiorina. HP was a good company before she got hold of it as I recall.

I'll never have an HP printer again either. The last one I had couldn't print 3 pages without jamming.

 

[andysayshi]

In a recent thread in here I posted a graph about a warranty analysis firm's experience with hardware repairs, and HP had a terrible record - more than 1 in 4 HP laptops failed within 3 years of purchase. That can't be good for their long term customers or reputation.

Download PDF:
http://www.squaretrade.com/pages/lap...iability-1109/

 

[Spiff]

Strange, their Touchpad has recently started a huge ad campaign (and likely a very expensive one), and their tv commercials are still airing. I'm not sure which is worse at HP, their products or their marketing department.

 

[TNniceguy]

It is right sad for the Touchpad. So much money wasted and I think WebOS is interesting. Apple's iOS and Google's Android have been so successful due to large developer base. The Touchpad and the Blackberry Playbook simply do not have the apps needed to support or encourage people to buy the product (especially at the same price point of the entry level iPad). I tried the Playbook for a week. Without a Blackberry phone, the Playbook lacked a native mail and calendar app. Like I said, I only had it a week before returning it. My money is on the Playbook going the way of the Touchpad.

Disclaimer: I'm an Apple fanboy.

 

[JB3]

You look YtY and their sales are marginally worse in their computer division. The only thing that is bolstering their sales is corporate and education sales since everybody hates Dell and Lenovo isn't that hot anymore.

Marginally worse, yes, but not bad enough for them to ditch it. The PC market is contracting, and everyone knows it will continue to do so.

The facts are that they're still the largest computer maker on earth, but they're choosing to ditch their manufacturing because it doesn't make enough profit. Even though they sell a ton of computers, the profits from them only make a third of the company's total.

 

[T-Rexx]

^ My guess is that it can probably be done.

People have gotten Android running on the HP Pre, another WebOS device.


http://technoreview.net/2011/08/install-android-on-webos-like-hp-touchpad.html

 

[JB3]

^ My guess is that it can probably be done.

People have gotten Android running on the HP Pre, another WebOS device.


http://technoreview.net/2011/08/install-android-on-webos-like-hp-touchpad.html

Apparently, at least according to HP, they're not killing off WebOS just yet. It sounds like (though this could be them trying to not get torn to shreds) they may still continue development, and just not produce any devices.

Also: If you can find a Touchpad, get one. Its still a great device for surfing the web, listening to music, and watching videos, and at $99 its an absolute steal.

 

[GayGeek]

Strange, their Touchpad has recently started a huge ad campaign (and likely a very expensive one), and their tv commercials are still airing. I'm not sure which is worse at HP, their products or their marketing department.

I was shocked to see this as well. I guess it's better to just cut your losses, but damn that must have been a tough call.

 

[presyden]

Oh great I just spent £600 on a new HP laptop!

It does have some great specs though for the price
Intel® Core™ i7-2630QM
4 GB DDR3
500 GB SATA 7200 rpm
AMD Radeon HD 6770M 1 GB DDR5
1 VGA; 1 HDMI; 2 headphone-out; 1 microphone-in; 2 USB 2.0; 2 USB 3.0; 1 RJ45
Beats sound system

 

[evanrick]

they are keeping their printer business? I wonder why? Maybe because HP charges $8,000 a gallon for their branded ink.

 

[looseliam]

From my recent experience with their printers, I'd say kill them off, too.

 

[JB3]

Oh great I just spent £600 on a new HP laptop!

It does have some great specs though for the price
Intel® Core™ i7-2630QM
4 GB DDR3
500 GB SATA 7200 rpm
AMD Radeon HD 6770M 1 GB DDR5
1 VGA; 1 HDMI; 2 headphone-out; 1 microphone-in; 2 USB 2.0; 2 USB 3.0; 1 RJ45
Beats sound system

There is no need to worry. The thread's title is misleading because they aren't killing it off. They're either going to sell it or spin it off. Regardless, it will still exist.