Okay HP, Let’s Make Some Lemonade

This morning, HP admitted failure.

After spending $1.2 billion to acquire Palm, they announced that they were killing off the development of all smartphones and tablets running Palm’s webOS platform — including the just launched TouchPad. Having survived for just 49 days before its death, it’s tragic that TouchPad lived just one day longer than the oft-mocked Microsoft Kin.

webOS itself, as a platform, isn’t entirely dead. HP says they’ll “continue to explore options to optimize the value of webOS”, which is really just a fancy way of saying “Yeah, we’re still not entirely sure what the hell we’re going to do with this thing.”

There’s a way out here, HP — and it’s all thanks to Google’s acquisition of Motorola.

You see, Google’s surprise $12.5 billion buy-out of Motorola has undoubtedly left Android’s other, non-Motorola partners (Samsung, HTC, LG, etc.) a bit… shaken up. In the blink of an eye, Google went from having what was essentially 0% of the hardware marketshare for their own operating system up to a domineering 30%. Out of nowhere, Google went from being the nice guy who builds all the software for free to something resembling a direct competitor. Google insists that Motorola will operate as a separate entity — but at the very least, they’ll be able to sneakily leverage Motorola to influence Android’s hardware ecosystem as a whole.

But where else are Android’s other partners to turn? Windows Phone 7? Great! Lets keep throwing licensing money at Microsoft. They only completely screwed up by sticking with Windows Mobile 6.5 for far too long, launched Windows Phone 7 way too late in the game whilst simultaneously way too early in its own development, inexplicably tried (and failed) to launch the Kin platform at the same time, and have been dickishly throwing a wrench in the Mobile world’s gears by demanding patent licensing money from anyone who finds any success with Android.

Here’s your move, HP: Fill the gap that Google has just left open.

Will it earn HP back the $1.2 billion they spent on Palm? Nope! But they still have Palm’s patent armory to show for that. Will it score webOS the throne as the #1 or #2 platform in the mobile world? Nope! iOS and Android have that locked down for the next few years , and there’s very little that could change that — but it does make it a viable contender against WP7 for that coveted bronze medal. It also makes the platform a whole lot more viable to third-party developers, if only because it would boost the number of purchased webOS devices above.. like, twelve.

HP ends up with a better webOS, and they avoid looking like they’ve completely wrecked the platform. Partners get a platform — and one with quite a lot of potential — in exchange for allotting manpower they’d already have to allot if they were to explore it in the first place, and they get to help steer its future to boot. Developers get a third platform worth developing for. (Oh, and, in some sense, it makes a licensed webOS more defensible against patent attacks, because of all the major players that had an official hand in its development.)

It’s not a resounding victory, but it’s probably HP’s best move at this point.

Latest Stories