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Following the $1.2 billion acquisition for Palm, many believed Hewlett Packard (HP) was looking for a fast-track way into the mobile device market, but that isn't the case, says HP CEO Mark Hurd.
"We didn't buy Palm to be in the smartphone business, Hurd said at the Bank of America Merrill Lynch technology conference earlier this week. "And I tell people that, but it doesn't seem to resonate well. We bought it for the IP. The WebOS is one of the two ground-up pieces of software that is built as a Web operating environment...We have tens of millions of HP small form factor Web-connected devices...Now imagine that being a Web-connected environment where now you can get a common look and feel and a common set of services laid against that environment. That is a very value proposition."
Hurd's comments certainly are in line with what HP has been crowing about ever since it purchased Palm, which is the IP portfolio. And while smartphones might not be on the agenda, HP did recently say that it plans on building a tablet around the newly acquired mobile OS.
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TechJunkie
June 04, 2010 at 5:56am
HP seemed to be doing OK without this aquisition. Had they not purchased Palm, they might have been able to keep the 9000 employees on the payrole a little longer. Just thinking about that makes me not want to purchase any HP products in the future.
someone87
June 04, 2010 at 6:12am
Really? You would not buy from a quality USA company because they laid off 9000 employees to stay viable int his market? If anything by buying Palm they probably kept more people on staff to work with the new product. It's not like HP is hurting for money, I believe they have 20 Billion $$$$ in cash laying around. HP has 48,000 in the last 5 years. What would have you rather happened to all the Palm employees? Get laid off because their company went under?
Every company lays off employees at one point or another, it's a wonder you buy any products from anyone.
TechJunkie
June 04, 2010 at 7:50am
They might be quality but that's not the point here. They purchased palm, not for the employees, not for the phones, but for WebOS and it's IP. I bet you, there will be no more palm products in 2 years and all the employees associated with palm will be let go. You stated they laid off 9000 emp. to stay viable but still has 20 billion in revenue and not hurting. That's an oxymoron. They laid off 9000 to raise revenue to line the pockets of the CEO, COO, and of coarse, the share holders. Besides Palm has only a few hundred employees....so yeah, a few hundred is better than 9000. So either way, palm will no longer be a viable entity.
Every company does layoff employees, but most layoff to stay alive in hopes business will pick up to rehire them. Corps. like HP, Microsoft, Dell, Etc, layoff only to raise more revenue even though they aren't hurting. There is a difference.
cynical
June 04, 2010 at 5:28am
Translation: If you worked for Palm, start updating your resume cause you're about to get shitcanned.
