HP is to stop offering devices powered by webOS, and is “exploring strategic alternatives” for the device software platform, following a wide-ranging review that could also see the company spinning-off its core PC business. In a statement, the company said that the former Palm device business has “not met internal milestones and financial targets.”
The company’s much-anticipated webOS-powered TouchPad tablet device (
pictured) was met with a lukewarm (at best) reception, and earlier this week it was reported that US retailer Best Buy was “sitting on more than 200,000 unsold TouchPads” – and was intending to return them to the vendor.
HP has also seen little operator support for its webOS powered smartphones, meaning the company has been unable to generate headway in a market that is dominated by Google’s Android platform. Its most recent device,
Pre3, has recently been made available to customers unlocked and unsubsidised, with reports claiming that operator interest was largely muted.
It was previously reported that HP was
considering licensing webOS to third parties, with some suggestion it would work with “one or two special companies” who could help build the webOS ecosystem. It obviously now feels it will be unable to generate enough support to create a viable business, especially with its own business failing to meet its own goals.
Last month, the company
restructured its webOS business, which at the time was described as a step toward “accelerating the global expansion” of the platform. This included a plan to engage with the app developer community, to develop new consumer and business apps. The company had high hopes for the platform, stating it would also
include webOS support in printers and PCs, in order to provide developers with the largest addressable user base.
HP has already said it is expecting significant costs related to the shutdown of the webOS business. It paid US$1.2 billion to acquire ailing smartphone maker Palm, which first developed the platform, last year, as part of a plan to bolster its position in the smart device market.
Separately, HP said it is exploring the options for its PC business, including the possibility of creating a separate company via a spin-off or other transaction. This comes as part of a refreshed strategy to focus HP on delivering “higher value solutions to enterprise, small and midsize business and public sector customers.”
As part of its focus on enterprise customers, HP also said it will acquire enterprise information management company Autonomy. According to reports, this deal could cost HP in excess of US$11 billion.