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Larry Magid

Larry Magid

Posted: April 28, 2010 05:49 PM

Can HP Save Palm?

What's Your Reaction:

Hewlett Packard's decision to purchase Palm for $1.2 billion strikes me as a bold but possibly misguided move to give HP the technology it needs to compete with Apple, Google and Research in Motion (Blackberry) not just with smartphones but possibly iPad-like tablet computers.

On the positive side, Palm's Web OS is an excellent operating system for mobile devices. It's clean, well organized and easy to use. I was one of several reviewers who gave the Pre a generally positive review when it was released in June, 2009. I liked the way it synchronized data over the air and how it organized windows into "cards." I also appreciated that -- unlike the iPhone at the time -- it was a multitasking operating system that lets you run several programs at a time.

Yet, despite some good reviews, it never really took off. For one thing, it's hard for anyone to get in the way of the iPhone juggernaut. Also, Google started shipping its Android phones which stole Palm's cool factor. Like Palm, Android is multi-tasking and does a good job at organizing multiple applications. Also, it runs on multiple devices from multiple carriers.

Of course there's nothing to stop HP from doing deals with multiple carriers in the U.S. and abroad and developing some slicker and more impressive phones for the Palm OS. What's more, just as Apple proved by porting its iPhone operating system over to the iPad, it's theoretically possible to use Web OS for other mobile devices including tablet PCs. Though I doubt that Web OS could possibly be an iPad killer, it could give HP the software platform it needs to come out with a credible competitor.

While I am totally speculating about whether HP would use the Palm OS for a tablet, we do know that the company is working on a Windows 7 tablet or "slate" computer to be released later this year. It might be interesting for them to come out with both a Windows and a Palm OS version.

The big question is whether HP has enough marketing muscle to succeed where Palm failed. I have no doubt that the combined companies will be able to create very cool software and hardware, but I'm not convinced they will get the sales they need -- at least in the smartphone business -- to justify a $1.2 billion investment. Still, I have to say I'm happy about the deal if only because it rescues a real pioneer in the smart phone and PDA business. It was Palm, with its Palm Pilot, that created the first successful PDA -- the Palm Pilot -- back in 1997. Palm made the transition to smart phones but never made it big in this market. With HP as its new parent, perhaps it has a shot, but it's a long-shot.

 

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05:59 PM on 05/03/2010
Palm was a waste of HP's money. The patents are worthless - grafitii anyone? WebOS is nice but Android is nicer. And with the iPad already at 1M units, HP will be just another boring tablet who is late to the party, WebOS or not. As for HP phones, all I can do is laugh.
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11:56 PM on 05/01/2010
HP has canceled their slate.
05:37 PM on 04/29/2010
there used to be many mainframe computer systems - IBM crushed the competitio­n and it distilled into IBM, IBM clones like Amdahl and a few also rans - zombies
there used to by many mid range computer systems - UNIX crushed most of them and now rules the mid range with...
there used to be many desktop PC devices - the market shook out to leave only PCs and Mac standing. PCs now operate as servers
there is customer value in consolidat­ion
phones are going the same way - android and iphone
the rest are dying - they just don't know it yet
android is the multi vendor equivalent of the PC
iphone is the single source equivalent of the Mac
la plus ca change
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
10:06 AM on 04/29/2010
Seriously - Palm OS or Windows? At the risk of quoting "The Graduate":

"I have one word for you - Linux."

If you have a DVR from DirectTV, it is running Linux, and my code.
I've used the rest, Linux is best.
Standard is better than better.
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HUFFPOST SUPER USER
Robert Meek
01:00 AM on 04/29/2010
I have a Palm Centro PDA phone. It is my second. The first one died unexpected­ly, so they replaced it. All things told, I'm happy enough with it. It's smaller than I would like, the buttons are closer than I would like, but I bought it online - something I shan't do again. However, one can adjust to those things. The one thing about it I do not like is the browser sucks. It's ancient. It requires "mobile" web sites, like "m.youtubl­e.com" etc., where one finds quickly it is more often than not "no longer supported" - PALM should have seen this coming, and updated the browser along with the OS updates.
07:37 PM on 04/28/2010
While Magid was at UC Berkeley, the government filed its antitrust suit against IBM because IBM had monopolize­d the mainframe market, which at that time was pretty much the entire market for computers. However, when Reagan became President that suit was dismissed because the government finally had to acknowledg­e that, because of IBM's bad business decisions, most importantl­y its failure to recognize how important distribute­d data processing and mid-range computers (referred to at the time as minicomput­ers) were going to become, IBM no longer had monopoly power in the computer market.

HP is trying to avoid making the mistakes IBM made when it failed initially to recognize the paradigm shifts in the IT industry caused first by minicomput­ers and then by microcompu­ters (now commonly known as PCs). Even Bill Gates has acknowledg­ed that we are undergoing another paradigm shift as a result of the ubiquitous­ness of the Internet and the shift to ever smaller devices that people use to connect to the Internet.

Thus, the question is not whether HP can save Palm, but whether Palm can save HP from a drastic decline in its market share as the IT industry goes through yet another change.
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11:54 PM on 05/01/2010
You are correct sir. Except HP is too late to the party.
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Middle Blue
What's a micro-bio?
07:10 PM on 04/28/2010
In the past two years, I've had HP gear just fail repeatedly­. Several devices including printers which will never have Windows 7 drivers, laptops with keys that fall off, laptops with battery releases stuck closed and so much more. Acquaintan­ces who work with their profession­al services group say things I can't reconcile with the TIME article about how great HP is.

Couple that with my (shocking) HP customer service experience­s.......

So, IMO, HP is self-destr­ucting anyway, and it just doesn't matter what they buy.
12:56 AM on 04/29/2010
Oh Man!!! I agree. HP makes the worst junk imaginable­. My brother in law bought an HP PC and it stopped working after three weeks. When he sent it in for warranty repair they said they would not fix it because he had over used it. Keep in mind he only had it 3 weeks sending E-mail and checking facebook. Plus the service tech was really nasty about it He had no choice but to write it off as as $800 learning experience­. He replaced it with a ASUS and could not be more pleased. Bottom line, run screaming for any HP product!
04:19 PM on 05/01/2010
i dont know about hp but i agree about ASUS. what a beautiful beautiful laptop....­..........­can be on for days and not heat up at all.......­..........­..........­.dem thai are smart cookies
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sve
Behave youselves!
06:41 PM on 04/28/2010
$1.2B?! That's a lot of cash. You'll have to sell quite a few units to pay off that investment­. Couldn't HP just make its own smartphone­?
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10:13 PM on 04/28/2010
What if they're actually buying R&D and industry linkages . . . ?

The next generation is probably the real purchase here.
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11:55 PM on 05/01/2010
Palms patents were probably worth at least that.