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Does HP + Palm = Facepalm?
ChiefMonkeyGrinder submitted a bit of commentary on yesterday's news that
Hewlett-Packard was buying Palm. From TFA:
"When I first read the news that HP was buying Palm for $1.2 billion, my first reaction was that HP had lost its marbles ('clueless' was how I tweeted it). Why, I wondered, did it need to pay $1.2 billion for a dying platform when it could have used the increasingly popular Android for nothing? (OK, it probably picked up a few useful patents, as well.) I also thought that it didn't have the resources to enter the extremely competitive area of smartphones."
I totally thought âÅ too.
Your hair look like poop, Bob! - Wanker.
called expertise. Palm has a lot of talented employees, a lot of IP, and a lot of faithful users. These things will all be good for HP if they're really serious about competing in the mobile arena. Many companies fail because their business plan/marketing sucks, and not because they don't make a good product. I'm ambivalent about Palm's stuff, but other people, like my father, is absolutely fanatical about his Palm gear.
My guess is that HP, like Apple, sees computing appliances as the death knell for general purpose computers. They want to make sure they're still around for awhile.
That would be if facebook buys palm.
The author does state in the article that he was mistaken about the amount of resources HP has, which amounts to at least $25 billion USD in cash on hand, at least 10x more than HTC and Lenovo (the other big Palm suitors from the past week) have in cash.
When compared to the other major companies in the mobile space, like Nokia, RIM, HTC, or Motorola, Palm seems like a very 'cheap' purchase in order to acquire an entire new line of business, along with their entire patent portfolio.
Additionally, it seems other articles mention the same patent concerns since Apple is now going after HTC (but not Palm).
http://www.businessinsider.com/apples-htc-patent-suit-could-be-another-reason-for-someone-to-buy-palm-2010-3
http://www.engadget.com/2009/01/28/apple-vs-palm-the-in-depth-analysis/
www.google.com
What went wrong was that they premiered on Sprint. If they'd been on Verizon from the beginning, VZW would have had it's flagship next-gen smartphone six months earlier, and Palm would have it's device on the largest network in the US. I cannot for the life of me understand why Android and Palm phones debut on 2nd class carriers like TMobile and Sprint. Like it or not, there's really only two players in the business that can offer true national footprint - AT&T and Verizon. Not going on one of those cripples you right out the gate.