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Jason Perlow and Scott Raymond

Ditching iPAQ for webOS was HP's biggest historical mistake

By | September 12, 2011, 1:18pm PDT

Summary: HP should have held onto its iPAQ range to the bitter end, and is still suffering the consequences today of making possibly its biggest mistake to date.

There is something ominously beautiful about the iPAQ, even today, years after it became defunct.

It’s hard to remember a name of a device prefixed with the lower-case ‘i’, before the likes of Apple and trampled every product with the moniker.

But there was a time, a carefree time, when the UK market was swamped by Windows Mobile devices of all generations, from HP’s iPAQ range to O2’s xda range — and the U.S market was revelling in a touch-screen PDA revolution, too.

It was a time where the tie clips came off, the top shirt button was left undone, and email was synchronised effortlessly over the air with Exchange on a native Windows-powered device.

Nothing could knock it from its perch. That is, until Apple came along and manhandled it to the ground; pressing down on its neck with its mighty foot on the curb of the sidewalk, not before wringing its neck in chilling cold blood.

But we aren’t complaining. As consumers and enterprise users, like the folly gathered at a public hanging of the King in true vive la revolution style, we cheered in delight that the old ways were gone. A new wave of consent and free speech had enabled us, to download applications as and when we see fit, and to synchronise all of our Gmail and Exchange accounts, when we choose to. (Image Source: Flickr)

But when Compaq threw itself into the arms of HP in 2002, HP carried on the line of iPAQs — a series of Windows-powered smartphone slash PDA devices, which led the way into the smartphone revolution we see ourselves in now.

HP outsourced much of the manufacturing to Taiwanese giant HTC; probably why the build quality of the iPAQ was elite amongst its Palm competitor. Had HTC designed the TouchPad, perhaps it would not have floundered so epically.

Out of nowhere, Mark Hurd, known to be on his last legs amid a career-killing sex scandal, made the decision for HP to buy Palm. A rival to HP, Palm sold Palm OS-powered smartphone slash PDA devices, which also led the way into the smartphone revolution we see today.

HP tried to compete with its new Palm acquisition, but failed. Though Microsoft barely dented the market, there was little choice out there for end-consumers, and people recognised the booming Windows tag far more widely than Palm’s diminishing brand.

Palm faltered, but was given the cardiac massage it needed back to life by HP’s marshals of the dark forces. At this point, the relationship between HP and Microsoft began to change.

As HP began to learn of Windows Phone 7, an altogether different operating system to its previous device software, and realised that half of its products were defunct, old and seriously behind on the times. Half of the iPAQ range did not even have wireless compatibility, designed as disconnected devices for embedded-only systems.

But Microsoft wanted to go a different way and take the new version of its Windows Mobile software elsewhere. It wanted to take away the PDA element of the operating system and make it a true rival to Apple’s iPhone.

HP went with Palm as its mobile operating system, leaving Windows Mobile 6.5, the last version of the ‘Windows Mobile’ branding, out to pasture. Only the iPAQ Glisten ran Windows Mobile 6.5, and the phone itself went into limited production.

While it would not disappear for good, left as the one and only option for the latest iPAQ branded smartphones, it is widely discontinued and only sold on older models of iPAQ devices.

This effectively ended the HP-Microsoft relationship. Though they ended on good terms, Microsoft came off better in the custody battle as it held onto Windows Phone 7, while HP had to make do with newly acquired Palm’s webOS.

Though this may sound like a bad thing, HP was excited at the chance to do something with a new operating system. It had the phones, the devices, the schematics and design tools to make new Palm products under the HP name: it was a set thing, and everyone was ready for it.

The in-between the acquisition and present day is not that important, for the sake of this article. No, instead the fact that webOS basically replaced Windows Mobile devices is the kicker here. In short, it shouldn’t have.

iPAQ’s were small, handheld, and some even had mobile network hardware. Sure, the operating system was a bit slow, but it was reliable, dynamic, enforceable by set and group policies, and it was an IT administrators’ ideal handheld. webOS, on the other hand, was the IT administrators’ worst nightmare. Not only was it an alien platform, but it barely had a shred of ‘Microsoft-ability’ in there.

But had it continued, and development strengthened, the iPAQ range could have become larger, and thinner, with more memory and greater hard disk space. The technology was already there; they just had to make the screen wider. You would have, in the space of a year of development, an iPad competitor.

With the iPAQ, HP had a legitimate competitor to BlackBerry. With the range of touch-only phones and QWERTY-keyboard integrated models, iPAQs had the potential to take on the giant that is Research in Motion.

But by orphaning Windows Mobile, HP had taken the iPAQ out into the woods, where nobody could hear, and nothing but a bottle of bourbon and a shotgun over its shoulder.

Microsoft, though does nothing with older versions of Windows Mobile, focusing instead on its new flashy Windows Phone models, still does not want to let go of the legacy mobile operating system. Having said that, it would not be in Microsoft’s interest to sell off or license in full older versions of its Windows Mobile software, as it wants Windows Phone on as many of its pre-conditioned, perfected third-party phones as it can.

HP doesn’t have a stake in this anymore, and Microsoft said goodbye without turning a blind eye.

Had HP not focused its effort on owning its own ecosystem — hellbent on owning the handsets and operating system that it could not do with Microsoft, perhaps the iPAQ could continue down the line into the modern world we live in today.

Had Palm not have been bought, throwing in the iPAQ towel in favour of webOS phones, HP would not have had to get rid of it only a few years down the line. HP barely got anything out of Palm, and killed off the old dog long before its time was due.

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Topics

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

Disclosure

Zack Whittaker

I interned briefly at Microsoft UK Ltd. in 2006 but have since cut my ties. 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 US 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. Since then, I remain as an automatic student member of the organisation as a result of my studies at the university.

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 which is not CBS Interactive, these will be disclosed in each relevant post to ensure transparency.

(Updated: 13th February 2011)

Biography

Zack Whittaker

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

In between studying, drinking, and occasionally sleeping, 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.

Despite his young age, he may appear inexperienced and misguided, but don't be fooled. At the grand age of 22, he has already totalled up many years of work, education, knowledge and general (mis)adventure.

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RE: Ditching iPAQ for webOS was HP's biggest historical mistake
PNO3 15th Feb
@mswift@... you ever have the privilege of owning a Jupiter Class Handheld? one of the best products when it came out. but they never went anywhere with it. Now, years later, net books are the hot thing, when in reality we had that but better years ago with the Jupiter Class Handheld. Instant on from cold start, flash storage for low heat and good speed, and amazing battery life. personally, dropping ether those or the nonstop servers that they got from digital was there biggest mistake.
it all comes down to one thing... Become Microsoft Partner, and prepare for your death, while MS, walks off to find another victim.
@tatiGmail
troll somewhere else. The article really make sense.
@owlnet No it doesn't and the "troll" is speaking the truth.
@tatiGmail
Last time when I checked WebOS is not Microsoft's product, not in realtime, probably in your dreams.
@tatiGmail

Seems to me those hundreds of billions the computer makers have made selling Windows computers over the last couple decades contradicts your statement.

Furthermore, your statement is completely irrelevant with regard to this article seeing as how webOS is the issue.
@tatiGmail HP would have been so much better off if they had just used Android instead of webOS.
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I still use my iPaq 3115.
aquart 12th Sep
I have hundreds of MSReader and Mobireader books on it. Pictures. Music. A UNIVERSAL REMOTE. Notes. Calculator. WiFi. But I am having a problem downloading NYPL books which is making me look at the Nook Color.

The Universal Remote is the big selling feature for me. Nothing like being able to mute an idiotic TV in a doctor's office or the gym or a bar.
@aquart I too have an iPaq 2150 that I read on for years. I also used it to sync my Outlook Calendar for my work. (I was a hairstylist and had lots of clients phone me away from the salon) I was the next best thing to my computers. Unfortunately we must move on sad I am now retired and I have a Windows 7 Smartphone and a Kindle 3 so I gave my iPaq to my 6 year old grandson (they had to disable the internet on it though :-))
@aquart You should do that while half the bar is watching the basketball game. That would be fun to watch. Not their reactions; them beating the stuffing out of you.
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Itanium, Alpha
facebook@... 12th Sep
I can think of a dozen other biggest historical mistakes. Itanium and alpha chipsets come immediately to mind.
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Izzard of Woz
Robert Hahn 12th Sep
This one, too:

???It was one of those informal meetings. It wasn???t a big deal. We just sort of asked for five minutes and showed Woz???s board. We were told, ???HP doesn???t want to be in that kind of market???."

In April Wozniak filed a formal memo to Hewlett-Packard???s legal department requesting the release of his technology (as he was required to do under his employment contract). It was granted and Wozniak left the company, sold his HP 65 calculator, (Jobs sold his VW), and that seed money, along with the Apple I prototype, was the beginning of Apple Computers.
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saved HP billions in M$ tax.
@The Linux Geek You sure are funny !! happy And BTW they ditched your linux based WebOS
@1773
No, they are trying to sell it at a profit.
Soon HP will ring the cash register with webOS. just watch!
@The Linux Geek The BOM for HP Touchpad is around $300 (hardware only) and they are selling it for $99. Add to it the cost of acquiring Palm and development costs of webOS (development is not free as you may think). In what world is that profit ? Maybe in you delusional/imaginary world.
@The Linux Geek
Now let us see:
$3 billion towards - WebOS
$1 billion towards development, preproduction and sales promotion
$399,000,000 (nearly half billion) for a million devices of touchpad and this excludes the phones, and now consider channeled phones, that total would become more than half billion for devices including phones and pads.
That totals to $4.5 Billion+.
Now HP made nearly less than $100,000,000 on touchpads and I think they might have made even less than that with retailer agreements. And now they might not have made even a million on the phones. Now tell me where are HP's profits that you think off. Please publish it, that way the HP investors would be happy. If you can't please STFU.
@1773 Wouldn't have needed to if they had used Android. wink
@The Linux Geek
But the hard fact is WebOS(linux) didn't save HP, rather it pushed HP near extinction. I would pay tax and survive rather avoid tax (get free stuff/GPLed code) and die.
@Rama.NET
see my above comment!
@The Linux Geek
Are you working for HP?
It would explain why HP is in trouble.
@The Linux Geek
I would pay tax and live instead of avoiding tax by using alternatives and die suddenly.
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A little thick
Robert Hahn 12th Sep
I have one of the first T-Mobile 2125's. It still works.
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Who is it to blame? The media. Ever since Vista, the media started to control the tech world. They made people believe everyone can make an operating system, and will be better than Windows. So, HP tried, Intel (Nokia) tried, other people are trying and new guys jumping in. Hard lesson to learn. I don't think anyone has learned. Lets just watch who will fall next.
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@jk_10 .. Rather it is a fact that while owning one's own OS is nice especially when one is an OEM it is NOT easy as all that. There is more far more to it than simply owning an OS one has to have a plan and heart enough to stick it out during the lean years when no one but you believes in your vision. HP simply did not have what it took they were to tied up in the modern corporate culture of the quick buck to develop this thing as it should have been.

Pagan jim
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An interesting historical note
baggins_z 13th Sep
the "quick buck" mentality can almost certainly be traced back to the government regulation mandating quarterly earnings reports. Yet another example of unintended consequences of government meddling in private enterprise.
0 Votes
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The computer companies all treated their PDAs like computers, not consumer gadgets. That was the brilliance of Apple: consumer gadget paired with online store.
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Interesting
Mr_Tech Updated - 13th Sep
So if someone starts selling a product called iPa(insert letter here) who is going to sue first: Apple or HP/Compaq
@Mr_Tech

Indian Pale Ale? Done! happy
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Actually .... you're wrong.
Oknarf 13th Sep
Specifically at what you left out. "The in-between the acquisition and present day is not that important, for the sake of this article..." But this is precisely where HP lost it all. After buying Palm they took too long, 2 years too long to get any product out the door. The Touchpad arrived DOA because it was at least a year late, the Pre3 never got out the door and they launched the Veer instead. All horrible decisions that proved to be nails in the coffin of webOS. I don't blame HP for buying Palm and switching to webOS, where it all fell apart is in their complete and total failure to execute. Period.
@Oknarf
You are right. There was nothing wrong with the product. The design team acted as if any tablet features that could be used by consumers were poison. They also did not do enough to get support from from the outside designers of WebOS software. Did not do any market research to find what business and consumers wanted/needed. Did not evaluate to see what Apple was doing right. I don't know who was in charge of the program, but there wasn't any engineers or even marketing people involved. Only IDIOTS!!!
Someone has very rose tinted glasses towards Windows Mobile. The truth for everyone else was very much the opposite.

Back in it's day WM was very good but also very flawed. It was the best because there wasn't any competition not for any other reason. It was so complicated to do even the most basic thing. Take bluetooth pairing for example, an utter nightmare of over complicatedness and unreliability.
@bradavon
Rose tinted? - complete nonsense!
First of all, let's think about how far ahead of their time these devices were. Back in 2001 - 4inch touchscreens, handwriting recognition, multitasking OS, exchange integration, multimedia playback, 200MHz ARM processors, weeks of battery life, and so on and so on. Because the OS was left open, third party apps were abundant.

The devices got better and better with time, right into 2010. Honestly, Windows Mobile 6.5.5 is still the best mobile OS ever and certainly less flaky than Android, while being far more capable than iOS. Bluetooth issues? Complicated? What?

It seems to me that the rosey outlook comes from the Apple camp mainly. What did Apple REALLY bring to the game? iTunes - that is the sum total of it. They happened to possess a legion of fanatical iPap users already and then they released the iPhone. It had far less features and less impressive specs than Windows Mobile phones of the time, but because of iTunes and the fact it was only able to do one thing at a time (so that Apple users brains did not fail), it was a roaring applauded success.

The fact that Windows Mobile was already superior, completely evaded even supposed technology enthusiasts and put us in the sorry situation we have today, where the incomplete Android is the only OS which lets you do what you want when you want on your phone.

For all its flaws - there is nothing you can do on the iPhone that my Windows Mobile cannot do BETTER
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Hiring Leo Apotheker
The Star King 13th Sep
.., from Symbian, which is a good OS but was developed in days of much lower resources, to Windows phone.

So if HP failed by going its own way, then Nokia taking the opposite route should succeed.
iPaq small dead thing
In the bottom drawer since
Two thousand and three
0 Votes
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iPaq was terrible
rynning 13th Sep
Yes, I had one for work. (WM 5.5?) It could do everything, but nothing well or, especially, easy. The screen was nice for its time, but Windows Mobile was a pain to use. Microsoft tried to make it look like a PC with a 3" screen, complete with Start menu. (What kind of thought went into that?) Just to find my wi-fi network and connect was a tedious process every time I went home.

At least MS was smart enough to ditch it and start over, leaving HP and others holding the bag. We'll see if MS was too late in its decision. I don't blame HP for not hitching itself to MS this time...
Maybe the build of the iPAQ was elite, but the integration was not. I use my Windows Mobile 5.1 based iPAQ hx2755 to this day for password storage and light web browsing over WiFi using Opera. It has biometric security, storage encryption, and supports WPA-2 via Odyssey Client. Neat list of features, but unfortunately reboot-free reliability was never one of them.
iPaq nothing, I held onto my Jornada waiting for something better. When I could no longer repair it I got a netbook. When you poke around in the less populated area sometimes you still need a for real modem. The netbook also gives me way to back up my camera work.
@mswift@... you ever have the privilege of owning a Jupiter Class Handheld? one of the best products when it came out. but they never went anywhere with it. Now, years later, net books are the hot thing, when in reality we had that but better years ago with the Jupiter Class Handheld. Instant on from cold start, flash storage for low heat and good speed, and amazing battery life. personally, dropping ether those or the nonstop servers that they got from digital was there biggest mistake.
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Crazy talk
jorjitop 13th Sep
Apart from a few backwards sysadmins in some companies, nobody would buy iPAQ with WinMob 6.5. WebOS is the best competition for iOS and it will be sad if nobody takes it on and brings it to market with good hardware.

You are not old enough, Zack, to be nostalgic about historic operating systems.
You missed the real ditch... in 2002 when HP purchased Compaq, they had a much better line of PocketPC's known as the Jornada. Better design, batter life, and oh yeah a GSM version in Europe that was canceled one week before launch in the US because of the Compaq purchase. Yes 2002 HP had a smart phone!
Why would ANYONE buy Palm ? Especially at 1.2 billion dollars? HP would have done better to put out a Droid Tablet. Duh.
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wrigxyt 84 jwq
cdfwekrwe58-24379034322857505402669581862814 23rd Nov
zkelqi,xdbqkkjy61, ecmyg.
actually, web OS was the best thing to ever happen to iPAQ, what killed them was the inability to market it correctly, or even all. I have two of the iPAQ phones running windows, and one running Web OS. although the hardware are not that different, the speed difference is HUGE. The web OS blew windows out of the water. not to mention the huge support you can find from the linux community because web OS is linux based. The Only people who did not like Web OS were those who have never used anything but widows phones and are attached to the brand name.

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