HP to Decide the Fate of Palm/WebOS Business This Week

HP May Announce Spin-Off or Sell of the Palm/WebOS Business Unit Shortly

by Anton Shilov
10/10/2011 | 06:37 PM

Hewlett-Packard reportedly scheduled a meeting on Tuesday where it plans to try to decide the future of its webOS/Palm business unit that produced smartphones and media tablets. The rumour has it that HP had already finished its "initial bidding" for the unit and wants to proceed to the decision making procedure.


It is unclear when exactly HP plans to reveal its intentions regarding the Palm/webOS business unit. Given the fact that the new chief executive officer wants to review all the controversial decisions of her predecessor Leo Apotheker by the end of October, there are possibilities that HP will indeed reveal its final word on the mobile unit by the end of this week, a report from Apple Insider web-site citing sources with knowledge of the matter reads.

As HP is looking forward to get rid of its personal systems group (PSG) and Palm/webOS division that it acquired last year for $1.2 billion, Amazon appeared to be "closest to finalizing the deal, among a handful of contenders", according to a rumour.

While the new chief exec Meg Whitman promised not to revert major decisions by Leo Apotheker, who decided to either spin off its personal solutions group (PSG, which includes PC and webOS/Palm business units) she also promised to have a new look at them and even reconsider if necessary.

What should be kept in mind is that nowadays successful PC companies should also offer portable devices like smartphones and media tablets, hence, the PC and the Palm units are generally indivisible. Naturally, HP lacks a number of things to build its own eco-system around PCs, smartphones, tablets  and other electronics so to compete against companies like Apple head-to-head. But its overall product portfolio points to potential success of the PSG.

HP did not comment on the news-story.