Please ensure Javascript is enabled for purposes of website accessibility

Time to Give Up: HP Ditches WP7

By Conceivably Tech - Updated Apr 6, 2017 at 11:33AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are Microsoft's opportunities in the smartphone market dwindling?

Hewlett-Packard (NYSE: HPQ) revealed that it will not be offering smartphones based on Microsoft's (Nasdaq: MSFT) upcoming smartphone operating system, Windows Phone 7. Instead, HP will be betting the farm on its own Palm WebOS. Is it time for Microsoft to scrap Windows Phone 7 before it has been released?

Microsoft's big hope to challenge Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) in the smartphone market could be dead out of the gate. Just a week after the company announced that it has reached technical preview status for Windows Phone 7 (WP7), HP told CNBC that it will not be using the software for any of its smartphones -- not for consumer phones, and not for business phones.

That move questions Microsoft's opportunity in the smartphone market, even if we heard that Microsoft will be has been and will be giving out 90,000 WP7 phones to its employees. Windows Mobile OS currently represents about 2% of the global phone operating system share, according to AdMob. Kin, which could have reshaped Microsoft's reputation in the phone market, was removed just weeks after the brand's launch. There is just a thread left for Microsoft in the smartphone market, and the dilemma isn't exactly dissolving: Apple is estimated to be shipping somewhere between 60,000 and 90,000 iPhones, and customers are purchasing 160,000 Android phones -- every day.

Now we get HP to join the party with an exclusive commitment to WebOS, which makes sense, given its $1.2 billion investment to acquire Palm. If HP offered a WP7 business phone and a WebOS phone, why would customers commit to WebOS, if HP does not?

HP EVP Todd Bradley told CNBC that it will not be entirely ditching Microsoft in future products that could potentially be a fit for WebOS. For example, Bradley confirmed a Windows 7 tablet. However, it is difficult to ignore that chatter that is coming out of HP, including the blog published by Rahul Sood, HP's gaming business CTO. In his most recent post, Sood points to an HP tablet that was first shown in 2006, which never made it into retail, but may now become a reality because of WebOS.

Sood writes:

"Finally we have a mobile operating system we can be proud of. You know, I'm never one to say something I don't believe -- I never really enjoyed using Windows Mobile, although Mobile 7 looks to be potentially awesome (you'd think after a decade or so it's about time?). I also like Android and Apple iOS ... but WebOS is still ahead in many ways, save that for another blog. I'm glad we finally bought Palm and now the possibilities are truly great.


So game developers, this was HP's vision 3+ years ago. If you could think about using our hardware and future hardware -- think scalable resolution, multiple cameras, fast graphics, awesome screens, touch, accelerometers, GPS, Bluetooth, WIFI, always connected, etc."

Can we expect am enthusiast tablet from HP? Possibly. It may not run Windows 7.

More from ConceivablyTech:

Microsoft is a Motley Fool Inside Value recommendation. Google is a Motley Fool Rule Breakers choice. Apple is a Motley Fool Stock Advisor recommendation. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Google. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

HP Inc. Stock Quote
HP Inc.
$32.49 (-2.87%) $0.96
Microsoft Corporation Stock Quote
Microsoft Corporation
$282.30 (0.71%) $1.98
Alphabet Inc. Stock Quote
Alphabet Inc.
$116.63 (-0.57%) $0.67
Apple Inc. Stock Quote
Apple Inc.
$164.92 (0.03%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.