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[TECH] The Smartphone Nazis

» 03 June 2010 »

While Steve “OLETSDOIT” Jobs deals with the tragic kingdom of technology assembly known as Foxconn ; the sex, drugs, and rock andor roll story of the lost iPhone prototype; or why he is THE business genius of the world; there’s other, more pressing matters at hand. HP did not buy Palm to be in the smartphone business—come again?

HP CEO Mark Hurd had the bright idea that they didn’t acquire Palm for some rinky dink entry into the world of Droids and iPhones. No, no they wanted Palm for WebOS! Yes, yes, kill the bastard smartphone and watch Palm’s CEO Jon Rubenstein cry endlessly. Sounds like a move out of Micro$oft’s early playbook. Hey Jon, that $1.2B that you thought was a life raft? It was actually those $5 arm floaties—partially deflated and filled with orange soda (and not orange Crush, but Shasta). From here on out Mark Hurd is known as the Smartphone Nazi—no phones for you!

So here’s what ran through my head as a side eye of massive proportions started to form on my face: why buy a company for literally A BILLION DOLLARS (#Dr.Evil) just to say, oh those devices that you originally intended WebOS for? Not happening. “We wanna use that high falutin’ IP of yers and put it on other things. You know like tablets, netbooks, and Hello Kitty alarm clocks/toasters—that’s the ticket!”

Then again, what’s the point of HP trying to resuscitate product lines that seem to fail? Why waste money on it when the obvious, more lucrative idea would be to outrightly own the piece of Palm that has shown true success? WebOS. The Palm Pre, albeit charming and actually much underrated is like Luigi. Yeah the phone can do much more than most and is faster—but no one really cares. It’s not the star. Verizon’s ongoing fire sale of the Pre and Pixi proved that (a capable smart phone for peanuts AND free mobile hotspot service!?). Regardless of why or what logic was used to make decisions like this, the end result is the same. People are pissed.

A short ride on the Angry Tech Person Train brings us to our next stop: Randall Stephenson, CEO of AT&T. People have been sending him emails about the amount of suckage AT&T is currently brewing. After blustering endlessly about how they will do something to fix the sheer weak sauce that is their network, AT&T debuted with new data “plans”. The long end of the stick is that there will no longer be a $30 unlimited plan; instead there will be a $15/mo 200MB plan or $25 2GB plan. This is clearly for the iPhone because NO one is using that much data on a GoPhone. The short end of the stick is the new and licorice flavored ETF fees that are now in full effect: cancel your service on your iPhone early and instead of paying $125—it’s now $325—surprise! I bet you won’t try to jump ship to the Verizon-rumored-iPhone now! Well you can try…maybe borrow Jon Rubenstein’s floaties—that’s the ticket!


UPDATE: 6.4.10 8:30am
Since the writing of this post, HP CEO Mark Hurd has backtracked a little on the “no smartphone for you!” idea. Here’s his comment:

When we look at the market, we see an array of interconnected devices, including tablets, printers, and of course, smartphones. We believe webOS can become the backbone for many of HP’s small form factor devices, and we expect to expand webOS’s footprint beyond just the smartphone market, all while leveraging our financial strength, scale, and global reach to grow in smartphones.

So there you have it. He’s using marketing speak to say they are not abandoning making smartphones under the Palm banner…just that they want to port over WebOS to other products too…Like Hello Kitty T-1 Calculators.

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  • symfonikz

    Only thing is…AT&T can still effectively do what they want, so long as they continue to have the latest and greatest iPhone in pocket. Sucks to be a (blind) consumer (of Apple products.)

  • bcoates

    you and your dam video game references

  • symfonikz

    Only thing is…AT&T can still effectively do what they want, so long as they continue to have the latest and greatest iPhone in pocket. Sucks to be a (blind) consumer (of Apple products.)

  • bcoates

    you and your dam video game references

  • Justrag

    Great information as usual. Love this!

  • http://twitter.com/Tatiana_Noel Tatiana

    “HP did not buy Palm to be in the smartphone business—come again?”

    Wait…Palm still makes SMARTphones? Oh. There's no reason for HP to keep Palm around for making smart phones. I mean, the iPAQ is doing so well with WinMo 6….*voice trails off uncertainly*

    No. All sarcasm aside, Tatiana, I think the move makes sense. (Sorry, but I'm about to #kanye your post.) The Palm name isn't getting a rise out of smart phone shoppers (maybe a few nostalgic people who got their first “grown up” phone in the mid-to-late 90s), but WebOS is hot (getting hot) amongst developers. HP already has its own line of smart phones (with which all three users say they are happy), so the company can port WebOS to if it ever becomes a viable platform for enterprise applications. Meanwhile, their best bet is definitely netbooks and tablets. Even if the iPad slaps other tablet sales out of the water, there will always be folks who just can't get with the fruit-wagon. For them, there will be Google OS and following at a hopefully close third, WebOS. It's really just up to HP to further develop the WebOS SDK so that it's an attractive platform for app developers to work on. HP can make some pretty trick hardware, couple that with a really advanced SDK for developers, it would be an awesome mating. Not to forget this whole “web of things” trend I see cropping up everywhere. If HP can get WebOS on enough useless shit, they'll quietly rule the world without us even noticing it.

    If they can make WebOS development and app market TRULY open like Google (that would already beat Apple) and integrate fully with EVERY service users can use (would beat Google), HP would have a killer on their hands. Believe me, out of all the traditionally-windows hardware makers out there, HP would be my choice to compete with Apple and if they can ditch Moneysoft and run a line of truly innovative WebOS toys, this could be seen as the tech deal of the century. WITH the right development. They could run with the big boys Apple and Google and maybe even beat them in some ways. They'd be the Audi of the tech world.

  • http://twitter.com/TatianaKing Tatiana G. King

    WebOS on enough useless stuff–exactly! thats exactly Hurd's point. Let's take the most viable thing outta Palm recently and rework it so we can silently creep Palm back in the game, plus increase HP's market share.

    I like your opinion on this. I will actually be adding an addendum shortly because Mark Hurd now says that they WILL continue with “smart”phones. Believe me when I say I HEAR you on the antiquated Palm idea of what a smart phone is. I think Palm and the 1st thing that still comes to mind is a monochrome Palm Pilot–how's that for brand recognition??

  • http://twitter.com/Tatiana_Noel Tatiana

    Palm Pilots and cappuccinos FTW!

  • Champagon

    “We believe webOS can become the backbone for many of HP’s small form factor devices” -He means windows 7 mobile…right?

  • Champagon

    “We believe webOS can become the backbone for many of HP’s small form factor devices” -He means windows 7 mobile…right?