Maszman Speaks! » Palm

HP’s tablet dilemma

Tom — Tue, 23 Aug 2011 17:22:25 +0000

When HP dumped its WebOS (that they bought with the Palm acquisition) and associated devices, it began selling TouchPad tablets at $99 in most of their markets. Unsurprisingly, they’re selling like hotcakes now since they’re a decent if not stellar device. ButÂ some people are saying HP should keep on doing this, totally ignoring the realities of actually making money. But there’s another wrinkle here. People are buying them at $99 because that’s what they seem to be worth. If you read that Techcrunch article their argument includes HP downgrading a number of important features that would further cheapen the device in the eyes of consumers and further erode its perceived value. Doing so would force HP to again lower the price. It’s a downward spiral.

HP is not Microsoft. Losing billions in a market just to maintain a presence is not a strategy they or their stockholders were willing to employ. They had a choice of either improving the TouchPad to the point its price and perceived value were equal (which they don’t seem to have been willing or able to do in the time they had available) or admitting defeat. Either one is costly, but at least there’s an end in sight now.

Daring Fireball: A Simple Explanation for Why HP Abandoned Palm and Is Getting Out of the PC Business

Tom — Mon, 22 Aug 2011 13:24:10 +0000

Daring Fireball: A Simple Explanation for Why HP Abandoned Palm and Is Getting Out of the PC Business.

HP kicks Windows 7 to the curb, will use webOS in Slate

Tom — Tue, 25 May 2010 17:54:16 +0000

HP kicks Windows 7 to the curb, will use webOS in Slate.

HP To Buy Palm for $1.2 Billion

Tom — Thu, 29 Apr 2010 13:15:50 +0000

Although they weren’t mentioned in any of the rumors I had heard, HP has announced they will buy Palm for $1.2 billion. It makes sense, in a way, as HP would probably love not having to depend on Microsoft for an OS for mobile and tablet devices.

Palm stock price headed for $0?

Tom — Fri, 19 Mar 2010 20:30:01 +0000

As I’ve mentioned before, I was a Palm user from way back but when it became time to replace my Treo, I ended up with a Droid. For me it made sense because Palm’s new WebOS was not compatible with its older PalmOS and if I was going to make the break, I wanted to go with the platform that looked like it would be around in a couple of years. But I had no idea how poorly Palm was really doing. In retrospect it was a smart move on my part, even if I felt a little funny about making it.

Palm’s new phones seem to be pretty good but no one is buying them. At this stage, Palm’s only chance for survival is being purchased. Apple would be a natural fit, given the genesis of the original company, but Microsoft has also been mentioned. But why would either buy Palm? Apple is happy with it’s iPhone and Microsoft’s new Windows Phone 7 is probably too far along to need much of a technology infusion. The irony is that Palm may have survived too long, had it failed sooner it might have made for a much more attractive package.

Withered Palm

Tom — Wed, 16 Dec 2009 14:31:29 +0000

I know I keep posting these, but the damage at Palm is worse than even I expected. I’d hesitate to call them a “one hit wonder” but you have to admit no Palm device made as big a splash as the first one did.

It’s tough being the first one in a particular market. You start with 100% market share and watch it decrease as competitors figure out how to make something similar. Your only defense is to keep coming out with the “next big thing”. Maybe it was the constant ownership changes, but Palm pursued a more evolutionary approach, when they could be said to have any approach at all, and it got them to where they are now. Let that be the cautionary tale.