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  1.    #1  
    HP CEO: WebOS is part of our cloud strategy. Todd Bradley: The effective price for the tablet is $300.

    Besides HP is not spinning off the PC PSG division, the inevitable question was “what are you to do with webOS”?

    Meg Whitman indicated, for instance, that webOS, which H.P. was incorporating into servers as well as tablets, will continue to play a role. “We’re still working through webOS, still haven’t gotten to ground,” Ms. Whitman said. “It is part of our cloud strategy. Stay tuned.”

    Todd Bradley, the head of the PC unit, did not say whether H.P. would re-enter the tablet market with webOS. The company currently sells a tablet that uses Microsoft software. He said the “effective price” for the tablet is $300, adding that “the challenge is building that out.”

    Well, we know now they are working on how to get parts and components that work and can reach a competitive tablet price for a 16GB wi-fi version with a $300.- price tag.


    Full article:

    SAN FRANCISCO — Meg Whitman is moving as fast as she can to figure out a strategy for Hewlett-Packard. For starters, she wants to keep selling personal computers.

    On Thursday, Ms. Whitman, H.P.’s chief executive, announced that the company would retain its PC division. The division, called the personal systems group, was responsible for almost one third, or $40 billion, of H.P.’s $126 billion in revenue in its last fiscal year.

    “First and foremost, H.P. is a hardware company,” she said in an interview. “We want to build out our software, but I don’t think we are done yet on hardware. There is a lot of opportunity.”

    The company’s former chief executive, Léo Apotheker, announced in August that the company was considering selling or spinning off the unit. He was forced out of the company a month later and succeeded by Ms. Whitman, the former chief executive of eBay.

    Ms. Whitman said there were concerns that an independent PC division would lose brand value and face higher overhead costs like real estate and operations. H.P., in turn, would lose the contribution the unit makes in delivering low-price components, like semiconductors, to other parts of the company. Besides personal computers, H.P. has sizable businesses in computer servers and data storage devices, printers and printer supplies, and related services.

    H.P.’s personal systems group is one of the world’s biggest buyers of semiconductors, which gives H.P. negotiating power for the chips it uses in other parts of the company, like computer servers and data storage devices, or printers. The unit’s products often figure in the sale of services like call centers, another big business for H.P.

    While H.P.’s PC division has revenue large enough to make it one of America’s 70 largest companies on its own, it is in a competitive business with narrow profit margins. This fit poorly into the strategy of focusing on higher-margin software and services developed by Mr. Apotheker.

    Keeping PCs still leaves the company with significant challenges, including low-price suppliers from Asia, competition in value-added products and services from large technology companies like I.B.M., and an industry trend towards cloud computing and mobile computing, where most computers are in large data centers with access over the Internet rather than on desktops.

    Much of the business, including PCs and notebooks, is under pressure from tablets, like the Apple iPad. H.P.’s own foray into tablets, using a proprietary operating system called webOS, ended abruptly after a few months of poor sales.

    Ms. Whitman is expected to announce her strategy sometime after H.P. announces its fiscal fourth-quarter results on Nov. 21. For now, she said, her final plans are still under review.

    “The question I get most often is, ‘What is H.P.?’ ” she said in the interview. “It is a communications problem, but we have to know what we are internally first.”

    She indicated, for instance, that webOS, which H.P. was incorporating into servers as well as tablets, will continue to play a role. “We’re still working through webOS, still haven’t gotten to ground,” Ms. Whitman said. “It is part of our cloud strategy. Stay tuned.”

    Todd Bradley, the head of the PC unit, did not say whether H.P. would re-enter the tablet market with webOS. The company currently sells a tablet that uses Microsoft software. He said the “effective price” for the tablet is $300, adding that “the challenge is building that out.”

    H.P. has advantages in reach and manpower that it would use to compete. “It’s not about software, it’s about solving customer problems,” he said. “No one can compete with us in so many countries, with as big a sales force.”

    Despite the turmoil over the PCs, H.P. actually increased its share of the worldwide PC market, to 18.1 percent from 17.8 percent a year earlier, according to the research firm IDC.

    Source: http://www.nytimes.com/2011/10/28/te...main.html?_r=1
  2. #2  
    I like what this article is saying in that HP wants to keep webOS as part of their cloud services , but i still want someone to get into making webOS devices again.
  3. #3  
    squeeze the value out of webOS
    If this helped you hit thanks.
  4.    #4  
    Quote Originally Posted by joen05 View Post
    I like what this article is saying in that HP wants to keep webOS as part of their cloud services , but i still want someone to get into making webOS devices again.
    Quote Originally Posted by kkhanmd View Post
    squeeze the value out of webOS
    I think the mistake HP made particulary Jon , was not watching the competition devices deep., and launched an old hardware version similar to the ipad 1 with a cheap plastic shell and without a lower price.

    The market is beyond that . Next quad core tablets as smartphones.

    HP have to assure the supply chain components and parts to get a $300.- tablet but defining which is the right one to satisfy customers and make profits.

    It is not easy.
  5. #5  
    TP Specs was OK. Jon made mistake with webOS development leading it in wrong direction.
  6. #6  
    Quote Originally Posted by akitayo View Post
    I think the mistake HP made particulary Jon , was not watching the competition devices deep., and launched an old hardware version similar to the ipad 1 with a cheap plastic shell and without a lower price.

    The market is beyond that . Next quad core tablets as smartphones.

    HP have to assure the supply chain components and parts to get a $300.- tablet but defining which is the right one to satisfy customers and make profits.

    It is not easy.
    TP specs were fine.

    They needed to do better development for webOS 3 which they slacked on a lot. Also that speaker area could have used some more QA attention. They should have put a metal band in that area to re-enforce and prevent the cracking several units have had.
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    #7  
    What is the production cost of the TP Go? 7" device will be cheaper to build. Especially if it is delayed 6 months as cost of parts drops. Could they sell it below $300 and not lose money? I'm not sure. Maybe they aren't sure either.
  8.    #8  
    Quote Originally Posted by jdale View Post
    What is the production cost of the TP Go? 7" device will be cheaper to build. Especially if it is delayed 6 months as cost of parts drops. Could they sell it below $300 and not lose money? I'm not sure. Maybe they aren't sure either.
    The difference between 10 and 7 inch tablet IMO might be from $50 to $100 down.

    The 7 inch Samsung is now around $300 but you can find a lot of lower prices options on Amazon from $79.96:

    http://www.amazon.com/s/ref=nb_sb_ss...bosnation0e-20
  9. jdale's Avatar
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    #9  
    Those are mostly discounted prices on failed devices. Which, to be fair, is not exactly a good omen for competing in that area.

    We know that even Amazon had to work to get under $300 and they have the advantage that they can afford to lose money on the hardware. I suspect HP could do it, but not immediately, and they would have to cut the specs (memory, processor, camera, etc) to get that low.
  10.    #10  
    Quote Originally Posted by jdale View Post
    Those are mostly discounted prices on failed devices. Which, to be fair, is not exactly a good omen for competing in that area.

    We know that even Amazon had to work to get under $300 and they have the advantage that they can afford to lose money on the hardware. I suspect HP could do it, but not immediately, and they would have to cut the specs (memory, processor, camera, etc) to get that low.
    Agree . It is hard for HP to come out with a lower price high ended tablet or smartphone since they don´t manufacture their own parts and components as Samsung and HTC do.

    HP purchase everything to China part and components makers, or at least most of them.

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