We quote a lot of analysts around these parts. Sometimes it drives me nuts. But sometimes they’re dead on. Today is one of those times. Remember when HP purchased Palm and its awesome webOS operating system? Then failed to deliver products to the market on time and eventually killed the product portfolio? Well, the company already says it needs to get back into the smartphone game and, rightfully so, at least one analyst says it’s too risky.
“After failing with its acquisition of Palm and subsequent goodwill and inventory of write-offs totally $3.3B, recent comments from HP management point to a retargeting of tablets and smartphones,” Jefferies analyst Peter Misek said recently. “While the move makes sense strategically, we see it as a high risk move. On top of adding costs and working capital burdens to an already stressed balance sheet, there could be additional write-offs. We note that to date almost all PC OEMs hav failed to gain significant traction in consumer tablets/smartphones.”
Misek is right. Remember Dell’s efforts with the Streak? Awful.
HP is wasting everyone’s time by saying it’s going to get into the smartphone market. It had the chance, it blew it, and now it’s time to move on.