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HP to exit Smartphone and Tablet Market ?

|August 19 2011 |Industry News, Mobile OS, HP, HP webOS


An year after acquiring the PDA maker Palm, HP announces the killing off its smartphone and tablet products. Posting a loss market figures, the company is effectively trying to kill the Palm. This weird move wasn't new to the company.

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Earlier, the company maintained a range of ipaq smartphone and later discontinued by making losses or limited success. HP developed the smartphones using the technology acquired from Compaq. Now, in the case of Palm, the company is too diplomatic. Palm has loyal fans across globe and they created history in making PDA's. An year back a couple of products like Palm Pre and Pre 2 were sold in several units.

hp-touchpad-slant

In the recent times, HP introduced a couple of Palm devices by including HP WebOS where it is very well regarded as an efficient OS for smartphones and tablets. However, the launch of HP TouchPad and Pre3 couldn't bring any success. Several devices are held with retailers unsold. The tablet market is overcrowded and extremely competitive. Apple iPad and Samsung Galaxy Tablet were the two products making a success records and HP was hit very badly. So, the company decided to discontinue the tablet and smartphone business and transfer the WebOS.

"HP Confirms Discussions with Autonomy Corporation plc Regarding Possible Business Combination; Makes Other Announcements


PALO ALTO, Calif.–(BUSINESS WIRE)–HP (NYSE: HPQ) today commented on the recent announcement by Autonomy Corporation plc (LSE: AU.L). HP confirms that it is in discussions with Autonomy regarding a possible offer for the company.


HP also reported that it plans to announce that its board of directors has authorized the exploration of strategic alternatives for its Personal Systems Group (PSG). HP will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction.


In addition, HP reported that it plans to announce that it will discontinue operations for webOS devices, specifically the TouchPad and webOS phones. HP will continue to explore options to optimize the value of webOS software going forward.


HP today announced preliminary results for the third fiscal quarter 2011, with revenue of $31.2 billion compared with $30.7 billion one year ago.


In the third quarter, preliminary GAAP diluted earnings per share (EPS) was $0.93 and non-GAAP diluted EPS was $1.10, compared with third quarter fiscal 2010 GAAP diluted EPS of $0.75 and non-GAAP diluted EPS of $1.08. Non-GAAP diluted EPS estimates exclude after-tax costs related primarily to the amortization of purchased intangible assets of approximately $0.17 per share and $0.33 per share in the third quarter of fiscal 2011 and fiscal 2010, respectively.


For the fourth fiscal quarter of 2011, HP estimates revenue of approximately $32.1 billion to $32.5 billion, GAAP diluted EPS in the range of $0.44 to $0.55, and non-GAAP diluted EPS in the range of $1.12 to $1.16. Non-GAAP diluted EPS guidance excludes after-tax costs of approximately $0.61 to $0.68 per share, related primarily to restructuring and shutdown costs associated with webOS devices, the amortization and impairment of purchased intangibles, restructuring charges and acquisition-related charges.


HP estimates full-year FY11 revenue will be approximately $127.2 billion to $127.6 billion, down from its previous estimate of $129 billion to $130 billion. FY11 GAAP diluted EPS is expected to be in the range of $3.59 to $3.70, down from its previous estimate of at least $4.27, and FY11 non-GAAP diluted EPS is expected to be in the range of $4.82 to $4.86, down from its previous estimate of at least $5.00. FY11 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $1.16 to 1.23 per share, related primarily to restructuring and shutdown costs associated with webOS devices, the amortization and impairment of purchased intangibles, restructuring charges and acquisition-related charges.


HP will host a conference call with the financial community today at 2 p.m. PT / 5 p.m. ET to discuss these announcements well as HP’s third quarter 2011 financial results. The call is accessible via an audio webcast at www.hp.com/investor/2011q3webcast."


hp-revenue



HP's decision publicized just after Google and Motorola's deal. Similarly, there were rumors murmured that Microsoft likely to acquire Nokia. Now then, the trend moved upside down, like the Software companies strong enough in buying the hardware (device making) companies. Earlier, the situation was quite reversal where the product making companies were stronger. Is this just the power of Android and iOS ??? I could definitely see that.. share your comments.


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