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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

HP expected to reveal webOS' fate today: What's on the cards?

By | December 9, 2011, 3:45am PST

Summary: As HP’s chief executive Meg Whitman set to make her decision on the fate of webOS today, a look back at the two options she has: keep it, or ditch it.

HP’s chief executive Meg Whitman has reportedly called a company-wide meeting for 10.30 a.m. (PT) in what is expected to be “the announcement” of webOS’ fate.

With no firm hints to suggest which way the decision will sway, it will have been Whitman’s toughest call to date; a decision that has taken months to deliberate over.


HP TouchPad — (Source: Flickr)

With no easy decision to make, one has to ask: What does Whitman know that we don’t?

Outcome 1: HP keeps webOS

Even though the decision is split down the middle, indications have been seemingly positive in recent months.

It was only two weeks ago when speaking to French newspaper Le Figaro she hinted that: “the team of 600 people [is] in limbo” awaiting the decision.

Even should she decide to remove webOS into industry’s Recycle Bin, though salvaging the multi-billion dollar PC and tablet group, she still has to contend with the albeit-smaller multi-billion disaster that webOS was.

The $1.2 billion acquisition of Palm led to HP owning its own mobile operating system. But as the TouchPad flopped in the first month of it going on sale, the former chief executive took the decision only a fortnight later to pull the plug on the entire division that made the ill-fated tablet.

Though HP has its roots in hardware, Apotheker spun off the PC and tablet group and left its employees in indefinite hiatus. Whitman already un-spun the decision to mark her territory as the new chief, paving the way for a second ‘positive’ decision to bring the company back on track.

Since its firesale, however, the TouchPad gained posthumous relevance once again.

By gaining the marketshare traction that it did, it effectively gave the green-light for HP to continue selling the product. Why stick with one HP TouchPad when users can fall into the usual upgrading fray, and buy a newer, updated model a year down the line?

In giving HP carte blanche to continue with its somewhat backwards success, the TouchPad brand in itself may have been tarnished, but its unexpected popularity can be continued.

Outcome 2: HP ditches webOS

Whitman can go with Apotheker’s flow and decide to ditch the unit.

It was former chief executive Leo Apotheker’s decision to rid HP of the unit when he was still the top-brass at the technology giant, and split the company seemingly in two. The decision came just shy of 50 days since the flailing TouchPad launched.

But the company is sitting on a cash cow of patents, intellectual property, and beyond all else, a functioning mobile operating system. It could strip out the bits it doesn’t need, license off the rest to others, or sell along patents and other fragments of gold bricks it has at its disposal. It could generate billions; money that HP would need to seek and find a new venture to focus its efforts on.

It is likely that Whitman will want to break away from her disgraced predecessor and want to set her own agenda, rather than taking pointers from the ousted former chief executive.

Should she reverse both decisions by Apotheker, giving life back to HP’s PC and tablet group and leasing life in webOS, the company will be almost back to where it started over a year ago: in trouble.

Besides the obvious that the crowded mobile market was barely impacted by HP’s range of Palm smartphones or webOS-based HP TouchPads, its smartphones were the greatest casualty in the mess that followed.

While the TouchPads gained traction and popularity, the Palm smartphone range was reduced to a relic of the past; an antique to savour the memories of times gone by.

In its death, webOS was popular in tablet form. For smartphones, by rounding off the webOS division gives HP a sigh of relief as it finally gets rid off the bain of its existence.

Anyone want to place bets?

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Zack Whittaker, a criminologist who studied at the University of Kent, Canterbury, is a journalist, writer and broadcaster.

Disclosure

Zack Whittaker

I worked briefly with Microsoft UK in 2006 but no longer have any connection with the company. Regardless, I remain impartial and unbiased in my views.

I don't hold any stock or shares, investments or industrial secrets in any company, but have signed confidentiality agreements with a number of UK and U.S. organisations, whose names I am not at liberty to disclose.

I was involved with Kent Union, the University of Kent's student union, undertaking voluntary, non-salaried, elected positions between early 2009 and mid-2010.

No other company, body, government department, non-governmental organisation or third sector organisation employs me or pays me a salary in any capacity whatsoever.

As a freelance journalist, whenever expenses are given and taken by a company that is not CBS Interactive, these will be disclosed in each relevant post to ensure transparency.

I currently work with a UK law enforcement unit, but this is an entirely separate position which bears no connection to other work.

(Updated: 23rd October 2011)

Biography

Zack Whittaker

Zack Whittaker, criminologist who studied at the University of Kent, UK, is a journalist, writer and broadcaster.

After studying criminology at university, though still in his early-20's, he has already had a series unconventional work and voluntary positions. He has worked with researchers studying neurological illnesses like Tourette's syndrome (which he suffers from), has given lectures on the nature of disabilities in the public community, and occasionally ends up speaking on television and radio discussing the events of the day.

He first had academic work published at the age of 22, then still an undergraduate, and has been cited by a wide range of publications: from CNN, the Huffington Post, AllThingsDigital, The Atlantic Wire and CBS News.

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RE: HP expected to reveal webOS' fate today: What's on the cards?
Jimster480 9th Dec
I think they will drop it. Or spin it off/sell it
0 Votes
+ -
Open
Tim Patterson 9th Dec
There is already one popular closed, controlled mobile OS. For the rest of us who value freedom there is Android. For hp to stand any chance of WebOS adoption they must open source it and add an Android emulation layer to take advantage of the Market ecosystem. A robust app market is a must for any mobile OS to be successful.
@Tim Patterson
Agree I don't think WebOS can make it without the App Market place. They need to take some pointers from the Blackberry Playbook and make WebOS play nice with others.
@nickitnite It's real, honest-to-goodness Linux, so it already has tens of thousands of applications that can readily be recompiled/ported, just like the Nokia N900. Adding Android support only removes any incentive for native WebOS apps.
@Tim Patterson Those of use that liked closed platforms could use another competitor in the system. Especially with all the crapware that comes with Android phones. I have an Android, and am waiting to replace it with a new contract. It won't be an Android.
@hayneiii@...
+1. You said it better.
What get's me wondering is if the Touch-pad gained traction only after the sale off frenzy for $99. Couldn't Google take an older tablet like the original Transformer pay Asus to sale it at a extremely reduced price say$99 and reap the benefits of new Android Market customers?
0 Votes
+ -
"What's on the cards?" ??
IT_Fella 9th Dec
Actually...the expression is "What's IN the cards."
@IT_Fella British idiom, I grant you that. But as I've argued (behind the scenes) with Mr. Perlow -- cards are flat; they have nothing inside them. They do, however, have faces on them.
@IT_Fella That's the American expression. Zack is British.
@jperlow Or so I say. Unlike President Obama, I've never formally released my birth certificate.
@IT_Fella: Ah, but a collection of cards (plural) is 3 dimensional and cards implies a set, and what is included IN the set is the question. What's in the cards? Given HP's track record of late - I'm betting a Joker is indeed, in the cards....
I'm pretty sure it will be scrapped. They have a long standing relationship with MS that will continue with the announcement that the new HP Touchpad will be with Windows 8. I thought the whole point to the Palm buyout was for WebOS and ending the MS relationship & the license fees that go along with it. But the announcement of Windows 8 being on the new Touchpad pretty much kills the purpose for WebOS for HP. Hp either felt they couldn't make any money with WebOs or MS made an offer they(HP) couldn't refuse.
0 Votes
+ -
Ditch it
toddybottom 9th Dec
No one can compete with Apple in the iPad market. The market is littered with the dead bodies of those who have tried.

It is a sick market. We all lose.
If Hp were to keep WebOS, they could follow Amazon's lead. Hp could make a 7 inch,8 gb tablet & copy the specs of the kindle fire & call it something like "touchpad mini" and price it in the $149-$199 range.
What if HP open source WebOS?
I think they will drop it. Or spin it off/sell it

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