Former Palm CEO and Apple
HP currently sells printers equipped with Android-powered tablet controllers, and it remains to be seen whether these products will be left in the cold or provided with software upgrades to webOS in the coming months. If HP is truly serious about squeezing value out of its $1.2 billion Palm purchase, this too makes sense -- but in a twisted way that turns one of Silicon Valley's most connected collaborators into a fairly lonely business, standing alone.
I didn't think this kind of move was smart when Cisco did it last year, and I still don't believe in it when HP is doing the same thing. Technical complexity shouldn't be a problem for a company of HP's scale and resources, leaving plenty of room for cross-industry collaboration and a plump product portfolio. But no, HP chooses to lean far too heavily on the Palm assets even after losing several key ingredients of that recipe.
HP's stock is rising on this news, but I think that's exactly the wrong reaction. This company is in a world of trouble and only digging itself a deeper hole for the next CEO to climb out of. Bad idea.
Am I right or am I wrong? Either way, share your thoughts on the Android-less and Windows-light HP in the comments below.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. Google and Microsoft are Motley Fool Inside Value picks. Google is a Motley Fool Rule Breakers recommendation. Apple is a Motley Fool Stock Advisor choice. The Fool has written calls (bull call spread) on Cisco Systems. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.