Too Late for HP in the Smart Phone Market?
Is HP’s purchase of Palm for $1.2 billion seems too little too late for HP to compete in the smart phone market? As the largest manufacturer of computers in the world it does seem like HP should be in the smart phone market, and yet few people realize that HP already sells the iPaq which isn’t even in the top 20 in the smart phone market and falling rapidly. The iPaq is primarily sold to businesses and relies on the Microsoft operating system. Which is not where the market appears headed. So HP’s purchase of Palm may have saved the brand for a while, but the odds are not great for success against the power of Apple and RIM (iPhone and BlackBerry) to name a few. However, it’s definitely worth watching given HP’s market power. Remember HP acquired Compaq and EDS and Dell acquired Perot Systems to grow hardware and services markets, and the smart phone is critical.
Apple Purchases Fast Chip Manufacturer
While HP purchased Palm, Apple announced its purchase of Intrinsity “known for making zippy versions of a computer chip often found in mobile devices.” Surely this gives Apple more power for its future while making HP’s seem even later to this dance.
No Surprise – Now a Degree in Video Game Design
George Mason University now offers a video game design. Given the size of this market it’s no wonder that such a degree is now offered. It’s a marvel that video game design degrees are just getting started and surely more schools will offers degrees in this space. No doubt HP and Apple will have a role in the video game future, and between smart phones, iPads, and computers this evolution is interesting to observe.
Could be HP wanted their own mobile operating system rather than to paying Microsoft for theirs on every mobile device HP sells. With mobile-ization of all kinds of devices a major growth trend, the Palm acquisition may be a big plus to HP margins at the expense of Microsoft.
Leon,
Good points...thanks for the comment.
Peter