HP Renews Its Vows With Intel

Just when you thought Hewlett-Packard (NYSE: HPQ  ) was getting cozy with ARM Holdings (Nasdaq: ARMH  ) and its licensees, the iconic PC maker is renewing its vows with chip titan Intel (Nasdaq: INTC  ) .

Last year, HP dipped its toes into an ARM-based server offering, using chips from ARM licensee Calxeda. It was a small win for the British chip designer, while HP is naturally a major Intel customer, putting its processors in most of its PCs.

HP has now said that its first batch of tablets running Microsoft (Nasdaq: MSFT  ) Windows 8 will feature x86 chips from Intel, holding for the time being on ARM-based processors and Windows RT. HP spokeswoman Marlene Somsak told Bloomberg: "The decision to go with x86 was influenced by input from our customers. The robust and established ecosystem of x86 applications provides the best customer experience at this time and in the immediate future."

Windows RT won't support legacy applications beyond mainstays like Office, so application availability could be a hurdle for the ARM-based Windows platform to take off. That and having the largest PC maker in the world pass for now also won't help.

HP said that the decision to stick with x86 was made before Mr. Softy's subversive unveiling of its own Surface tablet earlier this month, putting the two longtime partners in direct competition with one another on hardware. HP and Microsoft have had their fair share of troubles collaborating on tablets in the past. Somsak said HP will be going after the enterprise market first with the device.

On the other hand, Dell (Nasdaq: DELL  ) is allegedly still looking at pursuing a Windows RT tablet, but there's no official word quite yet. Dell might be aiming for an October launch for such a device.

One thing's for certain: Dell and HP both desperately need to get their tablet strategies up to speed. And by "up to speed," I mean "into existence."

With hardware makers battling commoditization, the smartest investors aren't likely to be buying these PC makers. Instead, they're out loading up on these stocks. We think one of them would even have Warren Buffett himself saying "Aloha!" Find out what stocks I'm talking about by checking out our special report, yours absolutely free.

Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Microsoft and Intel. Motley Fool newsletter services have recommended buying shares of Intel and Microsoft and creating a bull call spread position in Microsoft. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1931285, ~/Articles/ArticleHandler.aspx, 8/28/2014 9:32:35 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement