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HP Attempts to Manufacture Inspiration

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It's rarely big news when a large company shuffles an executive from one corner office to another. But that changes when the promotions and demotions say something significant about the company's strategy -- and the benefits of this simple move could be huge.

That's the case with Hewlett-Packard (NYSE: HPQ  ) this week, as the old Palm platform started to suffuse throughout the enormous HP beast. Former Palm innovator Jon Rubinstein has given up hand-holding the webOS division and moved on to a prominent position in the much larger Personal Systems Group.

In his new role, Rubinstein will help HP "to provide a seamless, secure, context-aware experience across HP’s product portfolio, and to deliver innovation at unmatched scale." That's a perfect assignment for a man formerly responsible for hardware development and industrial design at Apple (Nasdaq: AAPL  ) just as that tech icon unleashed the iMac and the first iPods upon an unsuspecting world. If Rubinstein can pull off a similar Herculean feat at HP, the Personal Systems division would be just the place to do it.

Of course, Rubinstein was also CEO of the failed Palm business, so letting him move on to more creative work while replacing him with a proven business mogul is probably a good idea. So HP is basically swapping his duties with those of former Personal Systems chief Stephen DeWitt, responsible for making HP the leading maker of computer systems in the world ahead of Dell (Nasdaq: DELL  ) , Acer, and Lenovo.

Under DeWitt's leadership, HP-branded phones could make a splash in the crowded smartphone market. If I ran Nokia (NYSE: NOK  ) or Research In Motion (Nasdaq: RIMM  ) , I'd worry myself sick.

So HP does a quick shuffle move that seems to improve the business prospects of its former Palm division as well as the consumer-pleasing powers of its PCs. What's not to love? After all, the tech titan could use some fresh thinking these days.

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How will HP's ambitious webOS plans work out? Can Rubinstein imbue tired PC designs with some Apple-style pizzazz? The best way to find out the answers to these questions is to keep a close eye on the company. Add Hewlett-Packard to your Foolish watchlist, and we'll help you stay informed.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 13, 2011, at 6:54 PM, InfoThatHelp wrote:

    I agree with the author, DeWitt had basically transformed the utterly boring HP tank-like PCs into galleries of inspiring machines that marry the most desired PC gears and programs into parades of highly desired best sellers. HP was first in equipping standardized CD & DVD players mated with Photoviewer software into the Pavilion line of PCs and then notebooks that launched HP into leader of PC discarding opponents the likes of Compaq, NEC, forcing IBM to relinquish its PC business to Lenovo.

    Whereas Apple apps capture the usage-oriented people and organizations ever so admirably, HP features will capture the convenience-oriented people and organizations that has yet been attended to. DeWitt is the man Google has been searching for. Apple is the Yang side of the universe where power rules with abundance of glee and creativity that the world relies on for activities and tasks. Google is the Yin side of the universe where convenience rules with myriads of niceties and care which seep into all the crooks and fissures of a tired body and spirit that seeks warmth and comfort. Nokia is a master of that side also, it is a very interesting scenario seeing how Nokia / Microsoft would fare with HP / Palm. I see the three sides of the human psyche being drawn to these three continuums - Apple for the ultimate purpose-driven usage side of human activities. Nokia / Microsoft for the ultimate business-driven process side of human organizational tasks and services. HP for the ultimate service-oriented infrastructure side of human support.

    The one to shake in its boots is the ultra-simpleton simpleminded and utterly purposeless and useless Rim which has absolutely no idea what a world is without email (commodity) and texting (even more commodity). Not is the Rim company a 1990's outmoded hippie that's out of touch of a globalized and far more humanized world which embraces humanity over cyber and wanton 'engineering' adventures like QNX and car stereo turned InfoSystems, Rim's idea of a world with insatiable appetite of its self-glorifying misguided visions is just so wrong. First bewildered and agitated, Rim will soon fall into an endless sequence of self-inflicted wounds and implosion that would turn its Blackberry into a BlackHole, then Red Giant, then White Dwarf.

  • Report this Comment On July 13, 2011, at 7:06 PM, InfoThatHelp wrote:

    Apple is an inspired politician with the right visions and chops to be the finest president a nation can ever have.

    Microsoft is an inspired businessman with the right tools and processes to be the most successful business machine ever, through think and through thin.

    HP is an inspired physician / engineer with the right skills, disciplines, experiences, and soft skills with the keenest senses of making kings and queens out of people and organizations. No one can take better care of people and organizational needs.

    Rim is an old hippie addicted to smoking pot trapped in illusions that if everyone else smoke the same weed then the world will be as peaceful and content as Rim is.

  • Report this Comment On July 14, 2011, at 10:49 AM, 1984macman wrote:

    HP appears to "get it" that it's all about an ecosystem of hardware products and Is acting accordingly. Microsoft is slowly moving in the same direction, although it's job is tougher since it isn't intrinsically a hardware company. But the fast track clearly belongs to Apple, which has been there all along.

    The amazing thing about Apple is that even now it has incredible room to grow on all fronts. Thus, HP and MS are fighting to simply hold the ground they have against an Apple that is literally eating their lunch.

  • Report this Comment On July 15, 2011, at 9:35 PM, melegross wrote:

    The real question here though is whether it's already too late for WebOS. With the iPad owning a real 85 to 90% marketshare, once the marketing departments from competitors are discounted, that is, ignoring the shipped numbers for some actual sold numbers, it will be hard for third and forth parties to get into the act. Five, if including the very late Windows 8.

    While I'd like to see some real competition, will there be any? This is yet to be determined.

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