HP thinks it would be "silly" to not focus on the smartphone market. But it's clear that the company will face an uphill battle.
A senior executive with HP has stated that the former ‘world’s largest PC maker’ has plans to launch a new smartphone. HP’s Yam Su Yin told PTI that although the company couldn’t share details about an exact launch date, the smartphone was definitely being developed. Su Yin also underscored the importance that smartphones held today by saying that it would be “silly” if HP did not have a presence in the smartphone segment.
HP did make relatively well-known Windows Mobile powered iPAQ smartphones from 2004 to 2009 but since then the company has not been known for creating noise in the mobile segment. It purchased smartphone maker Palm in 2010 for $1.2 billion for its WebOS software but none of the resulting devices took the world by storm (although the WebOS powered HP TouchPad tablet developed a sizeable cult following on account of its discounted price and user-friendly operating system). HP CEO Meg Whitman has also stated that HP would ultimately start making smartphones again to target developing markets where people are buying smartphones and tablets in lieu of notebooks.
Considering the fact that smartphones are expected to see a 32.7% growth this year as per IDC data, HP would indeed be “silly” to ignore the smartphone segment. Since HP has sold off WebOS to LG, it’s highly likely that the next HP smartphone/thingamajig will run on Android, the go-to operating system for all companies wanting to dive into the deep-end of the smartphone pool. However, HP won’t just have to contend with the Apples and the Samsungs of the mobile world but rather more familiar competition like Acer, Lenovo and Dell who have already been making Android smartphones for sometime now. The presence of these PC-makers in the smartphone segment and their relatively benign influence highlights some thing else that should worry HP. These companies have fought a losing war against the big guys and are now getting squeezed by low-priced handsets with comparable specs. HP will also have to fight this battle on two fronts especially if it’s looking to make a mark in developing markets like India and China.
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The HP TouchPad tablet
At the end of the day though, HP’s intent at refocusing on the smartphone segment could only mean good news for consumers. If HP manages to come out guns blazing with good smartphones at competitive prices, then all our best wishes are with the company whose name was once synonymous with Windows notebooks.
Sources: The Indian Express, Business Insider
Do you think HP will be successful in their second outing as a smartphone maker? Let me know what you think on Twitter @postwar or in the comments below.