Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

HP making another run at tablets with Windows 8

By | October 27, 2011, 2:41pm PDT

Summary: Although HP announced that the PC unit is staying put, Windows 8 tablets might have been the saving grace.

Now that Hewlett-Packard has announced that it will be keeping its personal computer unit, tablets are back in the spotlight.

Specifically, those powered by Windows 8, which might have had an affect on HP’s decision to keep the PC group.

See also: HP: We’re keeping the PC unit

Newly-instated CEO Meg Whitman has evidently brought a new (and perhaps sorely-needed) perspective to HP, as evident during a conference call on Thursday.

“HP tries to do a lot of things. I’m a big believer in doing a small number of things and doing them really well,” said Whitman, adding that she and her team are deciding on “what are the real bets we’re going to make in 2012.”

Tablets, especially those for both consumers and enterprise customers, present a major opportunity. HP has a chance to take advantage of the growing “consumerization of IT” trend while it’s still in its infancy.

“Over time, companies are going to want employees to bring their own devices,” Whitman explained. “How do you control personal devices and security? We want to have products highly desirable by consumers and the CIO.”

Todd Bradley, executive vice president of HP’s Personal Systems Group, added that we’re in the “beginning stages in a new segment in personal computing” with tablets. Acknowledging that the tablet space is a competitive business that is moving very quickly, Bradley remained optimistic about the direction that HP is taking with this strategy.

“I think the work we’re doing with Microsoft is extraordinarily compelling,” Bradley asserted.

Besides mentioning more work with Windows 8 and trying to meet the challenge of bringing personal devices to the workplace, HP executives weren’t any more specific as to what products we will see. Nor are we likely to hear any major announcements before HP reveals fourth quarter earnings on Monday, November 21.

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Rachel King is a staff writer for ZDNet based in San Francisco.

Disclosure

Rachel King

Rachel King has no business relationships, affiliations, investments, or other potential conflicts of interest relating to the content posted in this blog.

Biography

Rachel King

Rachel King is a staff writer for CBS Interactive in San Francisco. Before serving as a contributing editor at ZDNet in New York City for two years, she previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish America Magazine and the New York Daily News, among others. Rachel has a B.A. in Mass Communications and History from the University of California, Berkeley and a M.S. in Journalism from Columbia University, where she served as art director for the student magazine, Plated.

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cartergregoryl 3rd Nov
Hi
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0 Votes
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Now how will anyone feel confident about spending around say 500$ for another HP tablet, when they know that few months down the line probably HP would once again take a decision to discontinue the product ?
dependent on HP to keep the ecosystem alive. The W8 app ecosystem will be huge and dynamic and youll be able to leverage it for the life of the tablet.
all of the parts are easily obtained, and the whole structure is supported, and maintainable, and, most importantly, won't be "orphaned", like what happened with the webOS tablets.
I support Microsoft's efforts to put Windows on a tablet. That said, I don't think it will sell as well as the iPad. The iPad is a media consumption device. What will the Windows 8 Tablet be? Microsoft will charge device makers a royalty for the software, say $100. On top of the minimum price for 10" hardware at $300, that is already $400. If targeted at a certain segment of business users, it will sell well even if more expensive than the iPad. But I don't think the consumer will bite.
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@mstrsfty
I, for one, would like a tablet that can do more that just media alone.
And where did you derive the cost at 100 dollars from?

Microsoft does not charge OEM's 100 dollars for Windows 7, so why choose that amount?
plain
I remember when everyone predicted the great price hike when MS switched netbook oems from XP to W7. It was all about how they got xp for $15 and W7 was going to cost them so much more that the W7 netbook market would implode. Never happened. Netbooks with W7 didnt cost more.
0 Votes
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bad bet!
Linux Guru Advocate 27th Oct
@mstrsfty windoze takes HP nowhere! it's a dud.
Linux and android are the future.
@Linux Guru Advocate

At the risk of suggesting time is directional. you are looking into the past ,not the future. Most of us have other things to do than downloading distros and UIs. I'd also prefer some applications, even games and some assurance that I will get an upgrade to the OS.

Just turn around, the future is the other way wink
0 Votes
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@Linux Guru Advocate
Is this comedy hour?
0 Votes
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Your numbers are a little off
toddybottom Updated - 28th Oct
@mstrsfty
I'd be extremely surprised if the cost of a license was $100.

Regardless, you are going with the assumption that iOS is free for Apple. It isn't. There is a cost associated with iOS that is a part of every iOS device sold. How much? I don't know but it is certainly more than $0.00.

Where Apple is really far ahead is that they've forced suppliers to give them preferential prices for the supplies that go into making their devices.
there will be "subsidies" involved in order to get people to buy into the ecosystem of Windows 8 tablets, and so, the prices will be very affordable and lower than iPads.
my roomate's half-sister makes $76 an hour on the laptop. She has been fired for 9 months but last month her paycheck was $8478 just working on the laptop for a few hours. Go to this site NuttyRich.c0m
HP should make the tablet an alternate input to the desktop in the corporate environment. The tablet and desktop keep common file structure (hard disks or cloud) and the operator has the choice of desktop keyboard and mouse and touch on the tablet (alternating between inputs) with the work showing on both screens. The desktop or tablet are capable of performing the corporate tasks alone and update the other unit automatically. This allows the more portable tablet to integrate with the corporate software requirements that is lacking with other tablets. The tablet could also serve as a full size keyboard to the desk top unit and alternate between Keyboard/mouse and touch screen input. Let the customer have their cake and eat it too. Windows 8 would be required to make the transition for corporate use.
ultrabook. In fact I'd love to see an ultrabook with a 360 degree hinge that I could open into a tablet. happy

The keyboard could just disable when it hinged around. Just dont rely on venting out though it.
@Johnny Vegas
+1
@Johnny Vegas

I've got an Acer convertible. Just hanging out until I can get a Win 8 beta.
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I wonder if MS have given HP cash to help with "development costs" ?
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@Alan Smithie

I would suspect so. Cash to also put WebOS on the back burner which is a shame.
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Do you have proof?
toddybottom Updated - 28th Oct
@dave95.
A far more likely explanation is that WebOS was put on the back burner because WebOS didn't sell. At all. It was a financial disaster. Why was it a financial disaster? It wasn't because of MS tablets or phones, it was because of the iPad and iPhone. Yet you believe that atrocious sales and gigantic losses are less likely the cause of HP killing WebOS than an MS OS that doesn't even exist yet? Like I said, if you are going to make statements that on the surface are unbelievable, you are going to need to provide a lot more evidence. As of yet, I've seen none from you.
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@NZ

Financial disaster? You have to spend money to make money in this industry. Just look at Apple, how much did they spend on R&D for the iPad and iPhone before releasing it in the market? Buying chip companies. Assigning 1000 engineers to work on those Chips. Strategically investing billions early in supply chain and back-up supply contracts with other vendors for the iPad.

HP did not invest enough in the TouchPad before putting it out. They were foolishly chasing the first gen iPad hardware instead of the slimmer sexier second gen. Skating to were the puck has been instead of where the puck is going to end up. The hardware was ugly and bulky when compared to the iPad 2 and Samsung 10" and the UI was ridden with bugs. Let's not blame this all on the iPad, HP/Palm have themselves to blame for the lackluster sales of the TouchPad.

Many also believed the purchase of WebOS was sign that HP wanted to loosen the noose a bit from Microsoft in the consumer market. Have their own OS and ecosystem. That CEO is out, new CEO is in and WebOS in now seen as an afterthought. Oh and now Microsoft and HP are best of friends again. Hmmmm.
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Yes, it was a financial disaster
toddybottom 28th Oct
@dave95.
"You have to spend money to make money in this industry."

How much did HP pay for Palm? Was it $1.2 billion? And that was just for the software. Apple's R&D from 2003 to 2007 was $3 billion so under $1 billion per year. HP spent the money for software that people hated on hardware that people hated. It wasn't a matter of not spending the money. HP spent the money. The problem is that they brought a tablet that wasn't called iPad into the iPad market. They could have sunk another $10 billion and it still would have failed.

"The hardware was ugly and bulky when compared to the iPad 2"
"Let's not blame this on the iPad"

Isn't that exactly what you just did? Why are you allowed to say "WebOS failed because of the iPad" but when I say the exact same thing, I'm wrong? I'm blaming the failure of WebOS on the iPad and iPhone. Absolutely. WebOS (and the devices it was placed on) was not a competitive product to iPhone and iPad. You said so yourself. I agree. In a market that did not include iPhone and iPad, WebOS probably would have done quite well. So yes, WebOS's failure can absolutely be blamed on iPad. You just said so yourself. I'm not saying Apple did anything wrong. Neither are you.

However, let's take a step back. You started by blaming the death of WebOS on MS in your first post. Now you are saying WebOS failed because it wasn't anywhere near as good as iPad 2. So which is it? I was disagreeing with your first post where you blamed MS for the failure of WebOS. I am agreeing with your second post where you blame iPad. So which is it? Are you going to stick with your first post or your second post?
@NZ

Amazon seem to be selling many Kindle Fires in this "iPad market". They are taking a financial hit in the short term but if they stick with it, it will payoff in the long term. This is what HP needed to do with WebOS, but didn't. I am putting the blame on their doorsteps for failing to find an entry like Amazon, you're blaming everything on the iPad. WebOS and the TouchPad failed under the previous HP CEO for not investing enough and sticking with it. And for releasing a buggy bulky bug-ridden device.

With the new CEO Whitman, there seem to be a renewed interests in consumer PCs and tablets. And a renewed interests in Windows on consumer tablets, not WebOS on tablets. I "suspect" Ballmer is working behind the scenes to make sure WebOS never rear its head again.

So recap, HP helped killed WebOS the first go around with their own foolish mistakes, and my guess is Ballmer is working on keeping it dead with new contract deals with HP. Got it?
0 Votes
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Kindle Fire is not a tablet
toddybottom 28th Oct
@dave95.
It is a high end eReader that is highly subsidized by Amazon because it is really only good for consuming content purchased on Amazon. It is a fine business model and I believe Amazon will be successful with it. It is not a competitor to the iPad though. It is not a tablet.

" HP helped killed WebOS the first go around with their own foolish mistakes"

Yes, ultimately the blame lies at the feet of HP. I don't disagree. However, let's not be coy with each other. The iPad is what killed WebOS because the iPad is so superior.

As far as you suspecting that Ballmer is keeping WebOS dead: you could suspect anything you want and we will have to let the rest of ZDNet's readers decide who's evidence is more compelling. You have no evidence and you have admitted as much. My evidence is that WebOS was a proven market failure. It was a financial disaster. There is no point in spending good money after bad. WebOS was bad money spent. One of the major problems with WebOS is that it had absolutely no ecosystem and absolutely no hope of ever growing one. Apple has iTunes. It is the biggest, baddest, strongest ecosystem in the mobile and digital media world. No one else comes close. The potential appeal of a Windows 8 tablet is that it will leverage the biggest, baddest, strongest ecosystem in the desktop world. Will that be enough? We can't know since Windows 8 isn't even in Beta yet. However, there is little doubt that HP realized their devices aren't going to go anywhere with no ecosystem. Since Apple is not going to allow HP to use the iTunes ecosystem (and why should they?) and Android has proven to be another absolute profit disaster for all the OEMs who have gone there, HP is making the best decision they can by going with a provider that does have an ecosystem. It might end up not being the right ecosystem (will desktop apps work well on Windows 8 tablets?) but at least there is an ecosystem there. Unlike WebOS that was doomed from day 1.
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very good
0 Votes
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They had my interest with WebOS, not so sure about Win8. Looks like they've reverted back to kissing-up to Microsoft. Instead of paving their own future path with WebOS, they're back to relying on a company who's future in this segment is just as uncertain. They may get a few corporate interests with Windows Tablets but I fear consumers will largely ignore them in the market next to the iPad. If it's ignored by consumers then there's no "consumerization of IT" by HP. That phrase was coined because consumers wanted to use their own beloved gadget or phones at work, IT had to bend.

If you want an idea how expensive these tablet "PCs" will cost just take a look at how much the HP Slate is currently priced ($800). And the Slate have low specs with a measly 5 hour battery life and 8" screen. Just how much would a more powerful Win8 tablet PC that requires internal fans to keep cool and running intel chip cost consumers? And how will they market this Win PC a year from now seating next to the cool iPad device that's half its price?

Consumers I don't think want yet another Windows PC in the form of a tablet, that's been tried and tried again and failed to garner much attention.
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iPad killed WebOS, not MS
toddybottom 28th Oct
@dave95.
Just like iPad is about to kill the Playbook and there is no way that RIM is kissing up to MS. WebOS was out on the market and it didn't sell. Are you going to suggest that MS convinced people not to buy WebOS tablets? No. It was consumers who decided not to buy WebOS tablets because they were too busy buying iPads.

iPad has decimated the "tablet" market. It is a sick market. We all lose. You just admitted that you lost because you were interested in WebOS.
@dave95. I paid $399 for my Atom based Dell Duo, which has a better processor than the HP Slate. While it's not the greatest machine, there are similar priced Windows slates out there such as the Acer W500.

I'm running W8 Dev Preview on the Duo and it's as snappy as my iPad 2.

In fact I've shown both devices to my iPad carrying friends and some of my clients and they were more interested in Windows 8, especially as it can truly multitask and can be a hybrid PC/consumption device.
@dazzlingd

How is the battery life on that Duo? There's a reason why it's priced around $400 - $500. Bulky, unattractive, Windows 7 is not really iPad or metro touch friendly. The Win8 Tablet Samsung showed was said to be around $800.
You seem convinced that Windows 8 tablets will not be competitive with iPads. You might be right (you probably are right).

Don't you wish there was more than 1 choice in the tablet market? Wouldn't that be better for consumers? I think it would. I would like to have my choice of multiple good tablets. Wouldn't you?
@NZ

"don't you wish there was more than 1 choice"

Yes, which is why I've been pulling for Amazon from the start to secure that second spot. I knew Amazon was the only company besides Apple that "gets it". You may brush it off as just an eReader or consumption device but guess what? This is what most use the iPad today for, consuming info and entertainment. Games, web and social media. I agree it's not iPad level and it won't really threaten iPad sales as the market continue to skyrocket, but it will be seen as the next best tablet for consumption.??
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Then why bring it up?
toddybottom 28th Oct
"I agree it's not iPad level and it won't really threaten iPad sales"

Thanks. You've just successfully countered your own argument.
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@NZ

How so? Amazon it seems is currently selling plenty of tablets (pre orders). Isn't this what it's all about? Sales and a presence? They introduced a tablet/eReader that would more than likely succeed next to the hot selling iPad in the coming months. Something others are struggling with now. It looks like a solid "choice" for anyone looking for a 7" pure consuming device with an Apple-like content and media ecosystem. Unless Amazon totally screw things up, let's welcome the number 2 selling tablet device into the market. Amazon proving That you don't have to go directly at Apple to succeed. Frankly it was wise of them not to challenge Apple directly, playing the spec and price matching game. There's other points of entry into this market. End of the day it's an added choice for consumers.
0 Votes
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Racing to higher margins
P. Douglas Updated - 28th Oct
I think HP and other OEMs can stem the race to zero (profits) by deciding to compete in areas other than price and features. I think HP should hire great hardware designers to build super slick hardware.These designers should be teamed up with great software designers / developers, to create differentiating user experiences that build on top of Windows. Simply put: HP should try to differentiate its computer systems through integrated hardware and software design, and supporting by services.

I believe therefore HP should experiment with a set of higher end PCs, whose user experiences go beyond the vanilla PC experience. Designers will be crucial: because if an OEM throws a bunch of generic apps together on a boring machine, the effort will likely flop or not do so well, because the user experience is not compelling. Among other things, it will be important that many of the software that make up HP PC user experiences, be exclusive to HP PCs. Therefore HP will have to create first class software, not available anywhere else.

Internet radio could e.g. be integrated into consumer PCs. Mapping beyond what is found in browsers could also be integrated in. HP PCs should be known for the experiences a number of them provide beyond the vanilla Windows experience. If HP doesn???t follow this course, it will likely be forced to compete largely on price like it is doing now. (Differentiating its PCs the same way on the business side, should probably be even more profitable for HP.)
As I am tire of not having automatic updates for my smartphone, android is not all that interesting, it has far too much variation for a centralized update so you are fairly stuck with the system you bought without updates. There are parralels in the android tablet market as well. I think I will be going with Windows 8 when it become available. I won't be going to the completely closed system of Apple.
0 Votes
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holidays in Dubai
cartergregoryl 3rd Nov
Hi
Your blog is very nice. I have really learnt a lot from this blog thanks
holidays in Dubai

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