HP Picks Up Palm

Late last month, we reported on what was becoming known as a potential end for Palm, as the company has been sinking down quite noticeably over the past couple of years. There was mass speculation of what would happen to one of the originators of the smartphone, and that answer finally came to light with an HP press release. Yes, HP is Palm’s savior.

Today, it’s almost unusual to hear of a company that’s acquired for less than a billion dollars, but  for one like Palm, which at one point seemed like the only smartphone vendor on the market, HP’s $1.2 billion fee seems a bit surprising. But as mentioned, Palm has been on a decline for a while, and something had to come and save it. But is “save” even the right word?

Many people are speculating about what’s to come from this acquisition. Palm had decent hardware, but not great hardware. What made Palm memorable was its robust OSes, most recently WebOS. Chances are good that HP is looking to make something out of that, rather than Palm’s hardware (especially after the Pre had a very mixed reception).

So that’s likely to be the obvious move for HP, since the company clearly didn’t buy the company in order to wipe out a competitor. Plus, even in recent years we’ve seen what HP can do to some reputable companies it gets its hands on. Take Voodoo PC, for example. Once known as a premier go-to place for high-end PCs, the site today only reflects an outdated sub-notebook and mini-PC.

So here we have it. HP has its own mobile OS, and a good one at that. Now the job of competing with the likes of Apple and Google in the mobile space is HP’s to tackle, and it’s going to be interesting to see how it fares (hopefully well, to keep options broad and interesting).

“Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “And, Palm possesses significant IP assets and has a highly skilled team. The smartphone market is large, profitable and rapidly growing, and companies that can provide an integrated device and experience command a higher share. Advances in mobility are offering significant opportunities, and HP intends to be a leader in this market.”