HP – Page 2 – Tech.pinions

My Advice to HP: Give All the TouchPad’s Away

Shock and Bewilderment swept the industry as well as the tech journalism and blogger community yesterday. HP announced that they are not just looking to spin off their PC business but that they are also discontinuing all webOS hardware which included the HP TouchPad.

It was fascinating to watch the twitter stream of people commenting when the news hit about the HP spinnoff. Shortly after the initial shock of the news the big question got raised: What does this mean for webOS?

During the aftenoon we came to find out that although HP is discontinuing all webOS hardware operations, they are still commited to the software. If this is true, then I contend that they should give away all the TouchPads left at retail for free. They should at least HEAVILY discount them. Maybe let Best Buy do a special promotion where if you spend more than $200 dollars you get a TouchPad for free. Perhaps run a promo where if you buy HP products like specific printers, notebooks or desktop you get a TouchPad for free.

The reason is because if HP is commited to still supporting webOS it will only live on now by way of license. However no one will want to license it if there is no software ecosystem or apps surrounding webOS. There will be no software ecosystem or apps developed if there are no devices on the market for developers to write apps for.

This is why HP should just give them all away – all 400,000 sitting in a store house. They are already writing off this hardware so why not get it into the market any way possible.

Consumers are simply not going to buy them now because with this news will also come a lack of consumer trust in HP and the TouchPad. However people will accept one that is free just to try it and if they don’t like it they can give it to a friend or loved one. This move would also create a positive image for HP in light of the hit they are most likely taking.

The bottom line is doing this would create a market for webOS software developers to create apps for. My sense tells me consumers would actually be quite impressed with the TouchPad once they got it in their home and maybe would even spread the word about how great webOS is to their friends.

The bottom line is HP needs to move that hardware. Consumers won’t buy them or invest in webOS because it is risky and unknown. Give them all away. There is no downside to the consumer and I would argue only upside for all parties involved.

So to HP’s management-Give them away and make it easier for whoever buys it or licneses it to have a built in installed base of users to build on. I know this sounds bold and risky but that is exactly what you need right now.

How Will HP Hold webOS Talent

Joshua Topolsky at This IsMyNext has details on an all-hands meeting at which Stephen DeWitt, head of HP’s webOS business unit, declared that “we are not walking away from webOS” and promised an outline for the future within a couple of weeks.

In an earlier post, I outlined some of the difficulties that any webOS licensing strategy would face. By DeWitt inadvertently points out one I overlooked: How on earth is HP going to hang on to any good talent in a market where Apple, Google, Microsoft, and a flock of handset makers are all competing fiercely? The webOS unit is a defunct operation within a division–HP’s Personal Systems Group–whose own future is highly uncertain. A first-rate engineer can sit around waiting to see how things turn out–or can have half a dozen job offers nearly immediately.

Richard Kerris, director of webOS developer relations, tried to put the best face on things in a tweet, but the effect and more sad than encouraging:

webOS: Forget About Licensing, the Game’s Over

Hewlett-Packard’s announcement today that it was discounting all webOS products, including the TouchPad tablet and Pre phones, set off a flurry of speculation that the elegant ex-Palm mobile operating system might find a third life through licensing to hardware manufacturers.

But the fact is that webOS is now stone, cold dead with no hope of revival. The issue has nothing to do with the quality of the software and everything to do with the state of the smartphone and tablet markets.

Just a couple of weeks ago, my colleague Ben Bajarin suggested that webOS could still mount a real challenge to Android if HP licensed it. But that assumed that HP would be standing behind the OS and continuing to court developers.

The biggest problem webOS faced from its Palm days through its 16 months of HP ownership was lack of support from third-party development. Even if someone, and I can’t quite imagine who, were announce tomorrow that they were taking over webOS, it would take months to close the deal and get products back into production. The few remaining webOS developers aren’t going to wait. And the chances of restarting a development effort in the face of the Apple and Google juggernauts are nil.

I don’t know what went wrong with HP’s webOS effort. (Disclosure: I did a bit of consulting on mobile strategy with the company around the time of the Palm acquisition.) But I suspect the failure has a lot to do with HP’s never-ending boardroom dramas.

HP bought Palm in April, 2010. In early August, Mark Hurd was forced out as CEO of the company because of an “inappropriate relationship” with a contractor. In September, HP hired formed SAP CEO Leo Apotheker to run the company. And in February, HP announced the TouchPad and its plans for webOS products at a splashy event in San Francisco.

At the time, HP Personal Systems Group executives, including Executive Vice president Todd Bradley, made it clear that the real goal of the Palm acquisition was to give HP control over its own destiny. Owning on operating system that would provide HP with Apple-like control over both hardware and software. They even announced a version of webOS for PCs, though they never provided more than the vaguest of details. But they said, they knew it would be a long fight, years not months, and they were ready for it.

At first Apotheker, whose background is all in enterprise software, seemed to be fully behind the plan, but I suspect his heart was never really in it–or any other parts of the Personal Systems Group that HP is now looking to sell or spin out. By the time the TouchPad actually launched the TouchPad in July, the company seemed to have lost most of its enthusiasm for the product. It had failed to do the one thing that might have given it a shot at success, line up a rich array of apps, perhaps because the company wouldn’t provide the funding needed to buy developer support. Given the lack of conviction, the fact that it lasted less than two months on the market is shocking but not surprising.

I don’t know that HP could really have challenged Apple–someone recently called the company “the place good products go to die.” But it was an exciting idea and for HP, webOS products offered it a chance to break out of the no-margin commodity PC game. But sadly, HP’s senior management never gave the idea a chance.

5 Reasons Why HP Would Spin Out the PC business

There are various reports out today that HP will announce at earnings that they will spin out their PSG unit or their PC business. If they do this it is for a couple of major strategic reasons.

1-Leo Apotheker, HP’s CEO, is a software guy.
He understands software and services and knows that this is the most profitable tech business on the planet. Software and services have margins of 50% to 80% on average. This is the direction he wants and needs to take the company and put all of its energy on this focus. IBM came to this conclusion in 2005 and sold off their PC business to Lenovo for the same reason. And now, if HP is to really compete against IBM, Dell, Oracle etc, in this business it needs to put all of its efforts in this space.

2-They needed to get PSG off of their books.
Although PSG is still profitable, its profits are very small compared to HP’s other businesses. If they kept PSG on the books, even if their other businesses were doing well, it would continue to impact their total earnings numbers and threaten their overall earnings growth. This would be an important strategic move to keep their operating margins up and make sure they are more profitable in the future.

3-PSG would now have its own P&L.
This would allow them freedom to create other types of PC products as well as be more aggressive with the WebOS licensing. And they would still be the key supplier to HP for PC’s in any HP IT bids. But they would be free to sell their PC’s to IBM and others who need PC’s for their own IT projects as well. The PC business is a low margin cutthroat business and if PSG is to stay viable, it needed to be free to sell even to HP competitors.

4-The PC market is going through a great transition now.
PC’s are still viable for use as productivity tools. And we think that we still will sell between 350 and 400 million PC’s a year for a while. But they are commodity products now. They are almost all the same. HP’s PSG may need a lot of partners and different products that would not be in HP’s overall corporate thinking and this gives them more flexibility if they are unshackled from PC’s

5-Tablets will continue to dominate as consumer consumption devices.
While PC’s can still be used for consumption, they are not ideal for a lot of media consumption, especially since people are increasingly mobile these days. At the moment, there is an iPad market and we are not sure when a tablet market that will pan out. HP is already struggling with their TouchPad and they may need to focus on their webOS software as a key market product and as an alternative to iOS and Android, especially in light of Google buying Motorola as the Android vendors may start looking for an alternative. On their own, they could be much more aggressive with webOS, even if it meant not being in the hardware business.

It will be interesting to see what the details of the spin-out will be if it is announced later today. But there are a lot of good reasons HP’s board might have decided to let it go off on its on.

Once the formal news is out and we have reflected on the details we will publish a more formal analysis including the details of the announcement.

Microsoft’s “Can’t Lose” Mobile Strategy

Microsoft has been trying to recapture momentum in mobile after ceding the early market leadership it had 5-6 years ago due to its lack of adequate investment and resultant inability to stay competitive. And its renewed focus and execution over the past 1-2 years is indeed enabling it to make progress. But behind the scenes Microsoft has a strategy to become a driving force in the market and will likely produce more profits than many of the handset manufactures. And this is regardless of whether Windows Phone is successful.

Microsoft makes no mobile hardware, and licenses its OS software to several handset manufacturers (e.g., HTC, HP, Samsung). Its latest version of Windows Phone 7 (Mango) is refreshingly competitive and shows a lot of promise. And its distribution partnership with Nokia could propel it into a leadership position (although we remain skeptical that it will happen as quickly as some predict). Many observers focus on Microsoft’s attempt to gain ground on the competition by increasing its anemic smartphone OS market share. But the number of smartphones now being sold with windows mobile or the newer Windows Phone 7 is pretty small (various estimates are less than 5% of the market). Even at an estimated $10-$15 license fee per phone, the stakes are pretty small for a company the size of Microsoft.

But licensing the OS should actually be Microsoft’s back-up position. Frankly, there is far more money to be made other places. First, Microsoft is now putting a squeeze on all of the Android handset makers by enforcing its patent portfolio and claiming all such manufactures must license Microsoft IP to prevent infringement. And the handset makers are coming on board. Deals have been struck with HTC to start, and negotiations continue with others (e.g., Samsung). It is quite likely that Microsoft will be able to extract licensing fees (eventually) from all the manufacturers. And at $5 per handset produced, that is a staggering sum.

Adding to this revenue stream is yet another lucrative deal for Microsoft. Virtually every smartphone made (including Apple and Google Android, but with the exception of BlackBerry) licenses ActiveSync as the way to both connect to email (via Exchange) and to control the device (e.g., kill, provision). Microsoft controls 80%-85% of the enterprise email market. Without ActiveSync capability, the devices are unable to work in the business world, and what high end smartphone maker wants to be excluded from the corporate world? So licensing fees of $3-$5 per smartphone device for ActiveSync licenses has huge potential.

So what does this mean for Microsoft’s revenue streams?
Currently, all versions of Microsoft powered phones sell about 12M units per year (based on smartphone sales of approximately 400M worldwide estimated in 2011*, and 3% market share for Microsoft). That amounts to $180M best case (at $15 per device). There will be an estimated 140M Android phones (based on 35% market share) and 80M iPhones (based on 20% market share) sold this year worldwide. That amounts to $660M – $1.1B for ActiveSync licensing. And it’s likely that Microsoft will get many (if not all) of the Android vendors to pay royalties, so that’s another potential $700M (at $5 per device). This is not guaranteed, given it has not yet signed licenses with many of the vendors and some vendors in emerging markets may not care if they are infringing. But even if Microsoft only generates half of this amount, it’s a substantial sum. The OS revenues look paltry by comparison to potential IP revenues. And IP doesn’t require the substantial investment in updates and improvements that the OS does, making it even more lucrative.

Further, the smartphone market is likely to at least double over the next 3 years when we expect Microsoft to capture 15% of the smartphone market (primarily with Nokia). So 15% of an 800M device smartphone market = 120M devices and at $15 per device for licensing the OS = $1.8B in revenue. But the number of devices to be sold on Android = 45% of the total or 360M and on Apple = 15% or 120M. And at $8-$10 license fee per Android device and $3-$5 per Apple device, that’s $3.2B – $4.2B in revenue.

And moreover, even though Bing is currently way behind Google search in market share, it is now the favored platform for phone manufacturers distancing themselves from Google’s dominance. We expect Bing to capture 25% of mobile search in 3 years. This represents a huge revenue opportunity for Microsoft, although it’s hard to quantify at this point.

Bottom Line:
Microsoft can generate a lot of revenue from its deal with Nokia. But even if it doesn’t, the number of licensees of its IP will guarantee Microsoft a sizeable chunk of the mobile revenue stream. And that doesn’t even include the potential for revenues generated by cloud-based and Bing centered services. So Microsoft stands to gain handsomely from mobile, whether it succeeds with its own OS or not. It really can’t lose.

*Market Statistics and Projections (compiled and adapted from various estimates):

Current Smartphones shipped worldwide 1Q 11 = 100M units. Estimated 400M total units in 2011.
Approx Shares: Android = 35%, Apple = 20%, RIM = 15%, Symbian (Primarily Nokia) = 25%, Windows Mobile = 3%, Other = 2%

Future Smartphone estimates for 2014 = 800M units
Shares: Android = 45%, Apple = 15%, RIM = 15%, Windows Phone (Primarily Nokia) = 15%, Other = 10%

10 Days With the HP TouchPad Tablet

As I have described in previous posts on my AMD blog, part of my job entails forecasting future usage models for consumers and businesses. One of the various techniques I use is living with today’s technology and then extrapolating forward. I look at all sorts of hardware and software, and lately I’ve been looking at a lot of mobility devices, specifically tablets. One of the latest products I checked out was the HP TouchPad tablet. I lived with the HP TouchPad for the last 10 days and I wanted to share with you my thoughts. I won’t be extrapolating out five years, but I am intrigued about many aspects of the HP TouchPad.

HP TouchPad Advantages

· Setup: I have an HP Veer phone that I had previously setup and the HP TouchPad automatically imported ALL of my accounts. That included Exchange, Box, Dropbox, Facebook, Gmail, LinkedIn, Skype, Yahoo, and even MobileMe. I entered their passwords, and I was connected to everything. This is superior to Android in that it connects non-Google accounts and superior to iOS in that it automatically connects non-Apple accounts. THIS is the way every tablet should be.

· Real Multitasking: This has been an advantage with Palm products since the inception of the Pre with “cards”. When I mean real multitasking, I mean a way to see what is actually running simultaneously and the ability to quickly switch and/or kill apps and functions. The only thing even close is the BlackBerry PlayBook.

· Synergy: Managing all of the different best-in-breed services is typically very difficult with a tech device. Synergy gathers all of those services and contacts in one place to present an integrated view of an app or a contact. My contact in the HP TouchPad, for example, has 10 linked profiles, consistent with my services. One contact, not ten. Here are some specifics on accounts supported by HP Synergy.

· Notifications: There are two types of notifications, lock-screen and in the activity center in the upper right hand corner of the screen. These are superior to the iOS 4.x notifications in every way and really pull on Palm’s experience and legacy.

· Exhibition Mode: This mode adds utility to the HP TouchPad when it’s charging and/or sleeping. Instead of seeing a blank screen or some silly screensaver, you see a clock, your calendar, key photos and even a very-well designed Facebook page.

· TouchStone Inductive Charging: This is a feature I am surprised others haven’t tried to replicate because it’s just so awesome. The inductive charging feature allowed me to charge my HP TouchPad by setting it on the charger, without having to plug anything in. On other tablets, I continually plug in the unit incorrectly (iPad) or it’s hard to plug in (HTC Flyer).

· Printing: I have personally used over 15 tablets with all the add-ons for printing and the TouchPad was the first one that “just worked”. I have yet to print correctly or easily from any iOS 4.X or Honeycomb device.

· Connecting to Corporate IT: This was the easiest tablets I have connected to my corporate Exchange and wireless LAN. Literally, all I needed was to enter my email address and password and I was connected to Exchange. Its ActiveSync support is superior in every way. On the corporate LAN, all I needed was to email my security token to myself, import it, log-in, and I was on the corporate wireless LAN. The HP TouchPad was the first browser to actually work correctly with our web front-end for SAP.

What I’d Like to See in Future HP TouchPads or Software Releases

· More Apps: Some of my favorite apps are missing that I literally cannot be without. I need apps like EverNote, SugarSync, Kindle (coming), Google Plus, and HootSuite.

· More Pep: Even though the HP TouchPad has some of the highest-specification components like a dual core 1.2 GHz CPU, it didn’t feel like it. It lagged in many areas compared to the iPad 2 and even the BlackBerry PlayBook.

· Browser File Access: Without a specific app, I’d like to be able to upload files through the browser. For example, even if I didn’t have a Google Plus app, I’d like to upload photos via the browser. This requires file system access to do. The BlackBerry PlayBook did this very well and in many ways, compensated for the lack of apps.

· Video Services: There is a placeholder app for the HP MovieStore, but I’d also like to see Netflix and Hulu. Hulu runs in the browser, but it’s also very laggy. If Hulu ran more quickly in the browser, I wouldn’t need an app.

· Video Out: I like to display videos and photos on my HDTV. I cannot do this with the TouchPad, but I can with the iPad, PlayBook, and virtually every Android Honeycomb tablet.

· Video Chat: I tried to use the Skype-based video conferencing but I got no video and crackly audio. The BlackBerry PlayBook and the iPad 2 do video conferencing near flawlessly.

· Synced Bookmarks: I spend, like many, a lot of time on the web, and not just on a tablet. I access the web from multiple phones, tablets, and PCs. I’d like, at a minimum, an Xmarks app.

· Mouse: The HP Wireless Keyboard is great, but only solves half the produ

ctivity interface challenge. Reaching across the keyboard or doing “fine-grain” editing is just sub-optimal without a mouse. Android Honeycomb has the best mouse support today, closely followed by the PlayBook.

Conclusion

There is a lot to love about the HP TouchPad and it offers many things that make it stand out amongst the iPad, BlackBerry PlayBook, and Android tablets. Unfortunately, one of those attributes is a low number of applications and some lagginess in certain usage models. HP is a company I have had the fortunate honor to work for (Compaq) and work with for almost 20 years and when they commit to do something, they do it. I expect the issues to be cleared up and when they are, I believe more people will be focusing on its great attributes.

Feel free to give me a piece of your mind. Comments section is below.

See Pat’s full bio here or past AMD blogs here.

Follow @PatrickMoorhead on Twitter and on Google+.

Android Could be Vulnerable if HP Licenses WebOS

I’ve been pondering the question of Android’s growth, sustainabilty and market share for some time now. For several years now as we have been discussing strategy and market trends with our clients, Android always seems to enter the discussion in some way.

Many of the companies we consult with work closely with Google and implement Android on a number of their hardware platforms. Suffice it to say that being tuned into the intimate discussions between Google and their Android customers is VERY interesting. The bottom line is we know for a fact vendors are extremely interested in supporting multiple platforms and many of them do not want to bet their future on Android.

This reality is actually what led Intel to want to create and develop MeeGo. Intel heard the same complaints from hardware vendors who deeply desired an alternate to Android but had no viable option in the market place.

Android’s momentum, particularly with develepers, is the strongest reason for vendors to continue selling Android devices. Contrary to popular belief, mainstream consumers are not walking into stores asking for Android devices. Instead they are shopping for a smart phone and are seeking the best option to fit their life based on a few set criteria in their buying process.

Using this knowledge the question of HP licensing WebOS becomes quite an interesting one. If vendors are genuinely interested in supporting and developing out more platforms than just Google, then HP has a huge opportunity in front of them.

As I pointed out in my TouchPad review WebOS is solid, stable and elegant. All that is missing from making the OS great is a plethora of the key and important core applications. HP is going to continue to drive software development and they are buidling their develeper relations team out as we speak.

Review:
WebOS TouchPad Review: 3 Things that Set it Apart
Commentary:
HP is Committed to WebOS (and they should be)

If HP was to pull in one or two major vendors like HTC, Samsung or Motorola, my guess is developers would come in droves. This would mean the app shortage currently facing WebOS could turn very quickly. Especially given how easy it is to develop for WebOS.

I’ve stated this in a number of articles where I was quoted but I believe that if HP was to have success licensing WebOS it would hurt Android and Microsoft more than Apple.

Android is vulnerable because it is not a sticky solution. Most of Google’s apps are free, their services are free and accessible on other operating systems as well. Consumers who buy Android devices don’t have much other than the cost of the hardware sunk into the ecosystem. Google is a services company and they want their services on as many devices as possible, including non-Android devices. So even if as a consumer you are vested in Google’s services, you will be able to access these services(like Gmail) from any number of non-Android devices as well. For these reasons Android is not sticky.

Article:
Are Mobile Platforms Sticky

Microsoft has a better chance at creating a sticky platform but vendors like HP, Samsung and Moto simply won’t support Android, WebOS and Windows Phone. If HP can swing major commitments from any of those players my guess is Microsoft’s chances of getting more hardware wins for Windows Phone becomes a challenge.

I know i’m going way out on a limb with this statement however I would not be shocked if in three years Android was not in the top three of mobile OS market share. Entirely assuming HP does license WebOS(and they do it right) AND Microsoft delivers with Windows Phone 8 and beyond.

Those may be big assumptions but as I said the lack of stickiness with Android may be its Achilles heel.

A Sure Sign of Real Trouble at RIM

The senior Research In Motion executive who chose to vent his (or her) frustration in a open letter to Boy Genius Report may not have chosen the most graceful way to make those views known. But the writer may well have exhausted other means of communications. Certainly, RIM’s response suggests strongly that the increasingly troubled company’s leadership still isn’t hearing what it needs to hear.

The fact is that the open letter was an accurate analysis of the challenges facing RIM and was full of generally very good advice. The response is dismissive and described RIM’s current situation as a time when it is “necessary for the company to streamline its operations in order to allow it to grow its business profitably while pursuing newer strategic opportunities” after “a period of hyper growth.”

Streamlining and, above all, focus is exactly what the letter writer argued for. Mike Lazaridis and Jim Balsillie should give it another read with more open minds.

Best HP TouchPad Reviews Roundup

As I stated in my review of the HP TouchPad, I intended to focus more on the experience and my opinion on what features differentiated the TouchPad from the pack.

All the reviewers points emphasize my observation that WebOS is solid but the tablet needs more apps. Most reviews were for the most part positive. Many made the point that the TouchPad is still not ready but neither was Android for quite some time.

I must emphasize the point that the game is not over for tablet or smart phone market share. We still have a long way to go and HP’s first tablet attempt is a solid one.

In my opinion, below is my list of the best in depth product reviews from the gadget reviewers and bloggers. I’ve also selected a few lines from several of their more pertinent observations.

Joshua Topolsky – This Is My Next
http://thisismynext.com/2011/06/29/hp-touchpad-review/
The TouchPad is far from perfect — really, not even close right now. Still, there is DNA here that is amazing, and deserves to be given a second look. What HP has done in just a year with webOS is commendable, and if the fixes for some of these big, ugly bugs come as fast as the company is promising, the TouchPad could be the contender everyone over there thinks it is.

Harry McCracken – Technologizer
http://www.time.com/time/business/article/0,8599,2080635-3,00.html
This tablet bears the burden of great potential; it’ll be a real shame if it turns out to be nothing more than yet another unsatisfying, unfinished iPad alternative.

Tim Stevens – Engadget
http://www.engadget.com/2011/06/29/hp-touchpad-review/

Walt Mossberg – Wall Street Journal
http://allthingsd.com/20110629/touchpad-needs-more-apps-reboot-to-rival-ipad/

Ed Baig – USA Today
http://www.usatoday.com/tech/columnist/edwardbaig/2011-06-29-baig-hp-touchpad_n.htm
Even as a fan of the iPad, it’s good to see robust competition among tablets. And there’s a lot to like about the first webOS tablet. But before HP can hope to challenge Apple, it needs to supply more apps and exterminate a few bugs.

Vincent Nguyen – SlashGear
http://www.slashgear.com/hp-touchpad-review-29162207/
The recent confirmation that talks to license the platform are ongoing could well do more for it, if HP can get a sufficiently big name onboard. We hope it can, since the biggest shame of all is that, thanks to webOS 3.0, the HP TouchPad offers one of the best tablet experiences around, and we can see many would-be tablet buyers missing out on that while the platform keeps its marginal status. Uninspiring hardware, perhaps, but we’ll happily look past that based on webOS’ charms.

Mark Spoonauer – Laptop Magazine
http://www.laptopmag.com/review/tablets/hp-touchpad.aspx
The interface is more elegant and intuitive than what you’ll find on Android Honeycomb tablets, and we appreciate the time-saving features such as Just Type. The TouchPad also produces louder audio than any other slate we’ve tested. Last but not least, HP deserves credit for spicing up the app shopping experience and for leveraging webOS-powered phones to tell a better-together story.

Jason Snell – Macworld
http://www.macworld.com/article/160858/2011/06/hp_touchpad_first_look.html#lsrc=twt_jsnell
So what I’m saying is, I’m glad that HP finally shipped the TouchPad. If it can get developers engaged in its platform and iron out all the bugs while also growing webOS as a smartphone operating system, it might really have something here. But that’s a story about the future, and about potential.

Zach Epstein – Boy Genius Report
http://www.bgr.com/2011/06/29/hp-touchpad-review/
At $499.99 for the 16GB model and $599.99 for the 32GB model, the TouchPad is a solid buy for those with patience. If you’re looking for a tablet that provides a finished, polished, comprehensive experience from start to finish, you might want to wait or look elsewhere. For the life of me, however, I can’t think of a single tablet that fits the bill. The market is in its infancy and so are the products that occupy it, and tablets must crawl before they can walk. The TouchPad is indeed crawling in its current state, but so is its competition.

HP’s TouchPad-Can it compete with Apple’s iPad and Android Tablets?

Over the last few weeks I have spent a lot of time testing out two new tablets that are now on the market. The first is the Samsung 10.1” Galaxy Tab and the second is the new Palm TouchPad. Up until these two tablets came out it was clear to me that Apple pretty much had the tablet market to themselves. And while I had also tested the 7 inch Galaxy Tab, the 7 inch Zoom and the 7 inch RIM PlayBook, I felt that the real competition for the iPad would only come when we had tablets with 9- 10 inch screens that rivaled the iPad’s design.

For a full week I carried all three of these tablets with me everywhere I went and used them each for all of the basic tasks I do daily on a tablet. All three have very good Web browsers although Flash works just like it does on a PC on the TouchPad. All three have good touch based user interfaces. And to some degree, they actually all looked the same when I laid them down on a table and the screen was turned off. As I have stated in previous articles, one major attraction of a tablet to me is that it is a highly portable screen that serves as a window to the Internet, applications and ultimately the cloud. Of course, once you pick them up you notice immediately that the iPad is the sleekest of the bunch and the new Palm Touchpad is the thickest of the three.

Much has been written about the iPad so I won’t spend any time on this elegant product that, at the moment, dominates the tablet market. And there are dozens of reviews out on the Galaxy Tab as well. And reviews for RIM’s Playbook are also plentiful. So for this article I would like to share some thoughts on HP’s Touchpad, the newest tablet on the market and I will focus on two pressing questions.

The first question I get asked often is whether the Palm Touchpad is competitive?
The simple answer is yes it is. We have worked with Web OS for many years and consider this the most stable mobile OS on the market next to Apple’s IOS. And although our familiarity with Web OS has mainly come through the Pre, using it on the tablet now was as easy as it was when I first got the iPad and used IOS on it the same way I had used it on the iPhone. In that sense, Palm Pre users will feel right at home with this tablet.

With that in mind, it is clear to me from a hardware and software OS standpoint, that this is a solid product and one that is more then competitive at these levels. However, this leads me to the second major question I get often.
Can HP/Palm be successful with the TouchPad coming to market this late and with very little software support from the 3rd party developers?

This is a harder question to answer and one that needs to focus on three key things that HP/Palm need to do to make it a market winner.

First, they have to step up their efforts with the third party community and drive them to create thousands of native apps for the TouchPad. When I used native Web OS apps on the TouchPad that are identical to ones that are on the iPad or Android platforms, they looked just as good and worked the same as the do on these other operating systems. And in some cases, thanks to the Touchpad’s UI and multitasking, some worked even better.

On the test unit I had, many of the 6500 Web OS apps available at launch were apps written for the 3.5 inch Pre screens and do not scale to the 9.7 inch screen on the Touchpad. And unlike Apple’s iPhone apps on the iPad, they don’t even have a 2X button to artificially make them scale to a full screen and just sit in a 3.5 inch window in the center of the TouchPad. Although these apps work, they clearly do not take advantage of this new screen real estate. However, there are 300 apps written for the Touchpad that do work in full screen mode. This to me is perhaps their greatest challenge given the fact that Apple has over 60,000 native apps for the iPad and counting and Android has bout 10,000 tablet apps and strong developers support for this platform.

Second, they are going to need to make sure their channel partners really know how to sell the Touchpad and can demonstrate the areas where it differentiates from the iPad and Android tablets. Unlike Apple, who has their stores to enhance the selling process of the iPad, HP has to lean on its hundreds of thousands retailers of all sizes to sell this new product for them. And I believe they will need to spend serious ad dollars over the next 18 months around the world if they want to make any dent in the iPad and Android Tablet market share that is growing by leaps and bounds.

But the third thing that they need to do is put a tight focus on tablet solutions for the enterprise. They need to deliver a seamless integration of the TouchPad with their current IT services and solutions programs. The market for tablets is very crowded in the consumer space and even if they get more apps and spend more ad dollars pushing people to the channel to buy the Touchpad, they have a lot of competition from Apple and Google there. On the other hand the enterprise market for tablets is in its infancy. Yes, Apple has made some impressive headway in enterprise but this is not their primary focus for the iPad. And Windows 8 for Tablets is still a year away and Android’s lack of major security software and enterprise apps has slowed down its adoption in the enterprise.

But HP pretty much owns the enterprise for PC’s, laptops and servers and with a major focus on integrating the Touchpad into their overall IT solutions program, HP could deliver a powerful tablet that enterprises could adopt in large numbers. I consider this a critical factor for the TouchPad’s ultimate success and all indications are that HP is going to key in on the enterprise with this new tablet of theirs as well as extend Web OS to PC platforms to give developers even more incentive to create apps for Web OS. HP has hinted that they will ship as many as 100 million Web OS devices yearly, of which 70-75 million will be integrated into their PC’s and tablets.

Given the strong lead Apple has in the tablet market and the inroads Android is making via its various licensees, HP will clearly have an uphill battle coming to the market this late with their new TouchPad. But I am very bullish on it’s the quality of its OS and even the Touchpad’s solid design. If they can get strong software support as well as make enterprise a key target for this tablet, then the TouchPad can clearly be competitive and could become a third solid tablet device that consumers and business users can choose from in the years ahead.

HP TouchPad Review – 3 Things Set it Apart

I have been a WebOS fan since it was first released. Actually I have been a Palm fan in general since the first Palm Pilot. So to say that i’d love to see HP succeed with WebOS would be a mild understatement. The Palm Pre devices have evolved and although none have been a massive market success, the Palm team (now part of HP) has learned some key things; they have transferred that knowledge to the hottest part of the tech sector, which is tablets.

I will let the gadget reviewers tackle the speeds and feeds along with all the technical elements of the TouchPad with their reviews. I intend to focus this review more on my opinion of the touchpad, my experience with it, and the things that set it apart.

My overall Opinion

The TouchPad is an extremely good first tablet from HP. WebOS runs marvelously well on a larger screen. I’m not going to go so far as saying it runs even better than on a phone but lets just say that WebOS likes large screens.

The device itself is a bit bulky and heavier than my primary tablet, which is in iPad 2, but still very usable and very portable. The size and weight of the device is comparable to the Motorola XOOM.

Everything about WebOS was clean on the tablet. Gestures, the UI, the speed of the OS; all was fantastic. The only thing glaringly missing was a plethora of apps in the HP App Catalog. I am convinced that if HP had anywhere near the size of an App store catalog as Apple, the TouchPad would make a worthy competitor.

That however is being worked. We are assured from HP that they are in the for the long haul and are investing heavily into their developer programs.

I personally like this tablet quite a bit, more than any Android tablet i’ve used thus far. The software is largely the reason as I like the UI of WebOS and prefer it to Android – just my opinion mind you. The only thing holding the TouchPad back in competing with Android tablets in particular is the apps.

There are however three key things that set the TouchPad apart and are worth pointing out..

Multitasking

I firmly believe that at this point in time WebOS does the best job multi-tasking of any tablet i’ve used to date. WebOS accomplishes this with their “Card View” metaphor where you can see all the apps you have open as slightly smaller windows. With a quick finger swipe gesture “up” from the bottom of the TouchPad you quickly enter the card view.

You can also stack apps on top of each other to create space for multiple card view working environments. Ultimately this lets you have more apps open at one time, letting you jump back and forth between a larger selection of applications.

Multi-tasking is a key part of the tablet and touch computing experience because it allows you to quickly move in and out of apps to accomplish whatever it is you seek to accomplish. An example would be surfing the web, checking a quick e-mail then back to surfing the web again.

Dock aware Exhibition Mode

This is one of the areas I think has the most potential for WebOS. Because the TouchPad charges by simply sitting in the dock, with no need to plug in, HP has designed a way to make each dock location aware.

This means you could set up multiple TouchPad docks, one near your bed, one in the living room, and one in the kitchen. Then you can set your TouchPad to show a different exhibition mode depending on which dock the TouchPad is sitting on. So when my TouchPad is docked next to my bed it would display a clock and the when sitting in the dock in the living room it would display a photo slideshow.

What’s more is that HP has put into their software development tools the ability for developers to creatve new apps that take advantage of the location aware docks and exhibition mode. So we can expect new apps that take advantage of the location aware dock and exhibition mode to show up in the HP App catalog shortly. I am looking forward to a recipe mode for when the TouchPad is docked in the my kitchen.

Touch to Share

The last real differentiator I want to focus on is touch to share. This is a concept I think is quite interesting.

The basic idea is that if you are viewing something on one WebOS device, like the TouchPad, and you want to transfer what you were viewing to another WebOS device, like a Pre. All you do is touch one to the other and what was on the screen on one device shows up on the other.

The concept is simple but powerul. When you are managing or moving from device to devic,e frequently this solution becomes quite useful. At launch Touch to Share will support transfering a web page from one WebOS device to another.

In the future however you can imagine using this for music, movies, photos, documents and more.

Because your WebOS devices are paired together, you can also use the touch to share technology to recieve and answer phone calls and text messages directly on the TouchPad. This is accomplished by using the cell connection on your Pre or any other WebOS based device.

Summary

As you can see HP is not only deeply commited to developing great hardware like the Pre and the TouchPad, but also to further developing the WebOS ecosystem.

What I praise the most is HP’s vision to create experiences where your HP devices work better together, touch to share being a great example.

The TouchPad represents a premium experience as a tablet. A lack of apps are the only things currently holding the TouchPad back.

Time will tell how long it takes for HP to get a critical mass of quality applications in their catalog. There are at launch at least enough name brand apps to keep the early buying base satisfied. But Web OS is a solid mobile OS and HP is tailoring it to meet the need of a broad range of customers. I consider it a very comptetive product and one that has serious market potential.