HP admits failure, will kill off tablets, smartphones

Last April, HP saved Palm from death by purchasing the phone maker, webOS and its patents for $1.2 billion.

Today, the company has admitted failure, and will kill off its tablet and smartphone division.

Additionally, the company is set to spinoff its PC division in order to move deeper into the higher margin services and software market.

Best Buy and other resellers of the HP TouchPad are now possibly returning hundreds of thousands of unsold units, leading HP to take a $100 million write-off.

We reported yesterday that Best Buy sold just 25,000 TouchPads in the last 6 weeks, leaving 240,000 in inventory.

It is unclear whether retailers are all returning the units, or taking a subsidy so they can discount the tablet and sell at "firesale" prices.

R.I.P Palm, again.

Written by: Andre Yoskowitz @ 18 Aug 2011 23:38

KillerBug

There isn't enough time in the universe to laugh enough at this!

Hopefully I can buy a dozen of these for $20 each from ebay and use the screens for something else.

19.8.2011 00:23 #1

Hopium

let me know when you find some good deals please

19.8.2011 03:32 #2

FreddyF

This is sad news, not that HP realized they screwed up but they continue to do so. Management set unrealistic expectations and is over reacting when they didn't reach them. They expected to make margins like Apple from consumers that are not the blind "buy any new Apple product whatever the cost" iNuts. The rest of the world isn't as blind nor as willing to part with their hard earned income for a new untested OS, especially not at such a high price. As far as spinning off "Their PC business" they did that years ago when they climbed into bed with FOxconn and stopped being a manufacturer and became an overpriced reseller. unfortunatley it appears that HP is in a death spiral thanks to senior management. Great job guys! Keep up the good work. Soon HP will be another forgotten acronym.

Let us know if anyone discovers a way to hack Android onto this tablet. That is the only thing that would give it some value, in my opinion.

When someone puts out a tablet with external mouse/keyboard and pen(using a finger is too inaccurate), good resolution and battery life as well as secure RDC, we will have a powerful machine. You could effectivly carry your desktop with you anywhere. That is where they should be headed, not making these toys designed to solely for online social interaction. Business still drives the market (with the exception of iNuts), and RDC and a good tablet would allow people to do real work from almost anywhere, not just check e-mail and play on facebook.

FoxConn is already the largest computer manufacturer in the world, with at least 80% of the market, and they were paid by the other manufacturers to do it. Most people (including the big computer "Manufacturers" that bought into Foxconn) have no clue. Foxconn is going to come out of this on top by selling the best computers at the best prices, and I expect their quality will be better than the others. I suspect this is all part of their plan, destroy from within and I suspect they even went willingly by opting for cheaper lower quality parts to make higher margins. MORONS, one and all. You can only make profits as long as you sell a product people are willing to buy. Thank you Dell, HP, Acer, Asus and IBM (and more) for making the world dependent on one company.

19.8.2011 04:01 #3

biglo30

Damn lol, hopefully I can find one for a nice low price because i need something to browse the internet with lol

19.8.2011 04:13 #4

FreddyF

Actually there are a lot of cheap android tablets (below $100) that are probably better for browsing the internet. If you can find one that uses a pen, that is much better in my experience. I have to constantly soom the screen to be able to click the correct links which is a real pain. My fingers aren't particularly big, but at a resolution I can confortably read, it covers at least 3 links at a time.

I can surf and pretty much do anything else much faster with my old Dell Axim, only because of the stylus, and because of that it is far more useful than any of the new finger devices,phone or tablet, not to mention much faster. I don't know why they couldn't come up with an either/or touch screen,and include a stylus and holder. Would make my life much better. Again, poor management....

19.8.2011 04:57 #5

KillerBug

Originally posted by FreddyF:
When someone puts out a tablet with external mouse/keyboard and pen(using a finger is too inaccurate), good resolution and battery life as well as secure RDC, we will have a powerful machine.
You just described every android tablet (other than the pen). You can get Logitech mouse/keyboard/tablet stand combos already, and there have been secure RCD apps on android since before the first motorola droid was released.

Originally posted by FreddyF: You could effectivly carry your desktop with you anywhere. That is where they should be headed, not making these toys designed to solely for online social interaction. Business still drives the market (with the exception of iNuts), and RDC and a good tablet would allow people to do real work from almost anywhere, not just check e-mail and play on facebook.

Internet really isn't fast enough for what you advocate. Yeah...you can essentially carry the documents around, but you can forget about watching your movie collection, or even doing basic graphics work as long as you are on what the carriers call 4G (it isn't really 4G because a minimum speed of 100mbps is specified in the 4G specs). Even something as basic as circuit board design (only a couple of colors and very infrequent changes) brings framerates to a halt when I connect using my phone.

Originally posted by FreddyF:
FoxConn is already the largest computer manufacturer in the world, with at least 80% of the market, and they were paid by the other manufacturers to do it. Most people (including the big computer "Manufacturers" that bought into Foxconn) have no clue. Foxconn is going to come out of this on top by selling the best computers at the best prices, and I expect their quality will be better than the others. I suspect this is all part of their plan, destroy from within and I suspect they even went willingly by opting for cheaper lower quality parts to make higher margins. MORONS, one and all. You can only make profits as long as you sell a product people are willing to buy. Thank you Dell, HP, Acer, Asus and IBM (and more) for making the world dependent on one company. Foxcon will never make the best PCs...they might make PCs that are better than Dell, HP, Compaq, etc...but they will still be total trash (just like Dell, HP, Compaq, etc). The simple fact is that the average end user is more concerned about the color of the laptop case than anything inside it. I AM NOT EVEN JOKING ABOUT THAT...THEY ACTUALLY PAY MORE FOR SLOWER, LESS RELIABLE COMPUTERS JUST TO GET THE COLOR SCHEME THEY WANT. If the customers don't care about anything but external appearances, then why should the manufacturer care? After all, these people are buying more computers than anyone because they are the majority (and because their crummy PCs break 3 days after the warranty expires).

19.8.2011 05:40 #6

FreddyF

Originally posted by KillerBug:
Internet really isn't fast enough for what you advocate. Yeah...you can essentially carry the documents around, but you can forget about watching your movie collection, or even doing basic graphics work as long as you are on what the carriers call 4G (it isn't really 4G because a minimum speed of 100mbps is specified in the 4G specs). Even something as basic as circuit board design (only a couple of colors and very infrequent changes) brings framerates to a halt when I connect using my phone. The internet is more than fast enough! I consult for a company that is doing this now, although with laptops and rack mounted high end blade based workstations for very high end CAD applications. RDC only sends the screen shots, no data needs to be kept, no real processing, just the screen to the client and mouse/keyboard commands back. At 300 kbps it works fine, but probably nor for watching movies, however most cellular networks can't handle sustained traffic at those rates, and they can choke. But my severly limited DSL in Italy does a good job controlling a remote desktop in Washington DC.

Most tablets may allow keyboard/mouse use, but not very well from what I have seen and even fewer allow the use of a stylus. I have seen many people on forums talk about how much better one type of screen is over another, and talk down ones that allow stylus use. After several months I still can't select the correct link atleast 50% of the time.

As far as people paying more of a less capable laptop with the right color scheme, there have always been morons that consider fashion more important than functionally, why else do car companies sell so many "cute" cars and apple sells sells so many ipads, iphones and ibooks? It's the other companies reaction that is killing them. They spend too much time chasing Apple when their core business could care less about I-anything. Businesses (Core customer for most computer compaanies) would much rather have a high end notebook that looks like a cheap one. Less chance it will get stolen. I've helped people find appropriate computers and dealt with the ditzy college student who asked "but what about this Dell, I can get it in so many cool designs", so yes I know they are out there. But the absolute failure of those lines is because there are not as many as most people believe. As soon as I saw that Cisco was selling fashion Flip video recorders as well as routers I knew they were on the way out. No retailer wants to stock 20 different models of the same item. They can't, clothing retailers can because of the insane markups, but this is not the cae with electronics. Dell had the best idea but poorly implemented, allowing the lid to be replaced with multiple covers on some notebooks, which would have been much better if every size notebook had the same cover so every notebook could be customized and no additional cost to the notebook, just additional for the cover. Hell, some companies would have had custom covers with corporate logos made but Dell limited it to some models esentially killing it. If they had it on all models, every manufacturer would have done the same. Most computer companies have really bad senior management, who do stupid things like chasing customers who make them no money, like the people who buy really low end computers and complain when they don't do what they need it to do.

By the way who is making the best PCs these days, Desktop and Notebook? I need one and the companies I consult for need them as well! I can make my own and will make a new one soon, but companies don't like to do that.

19.8.2011 07:06 #7

chokoputik

Can HP just re-package the tablet with vanilla Android 3.0?

19.8.2011 09:54 #8

fplman

HP has been a failure as a business for several years- the Poorly Constructed PC's Laptops and Desktops- the Horrid repeated Failure tio honor Warranty's, Just a Pathetic company... I've just been waiting for this to come to a Head, which it has now- I own A Computer Tech Business, so I KNOW how Stupidly many of their Computer Models have such repeated failure rates.... And The Desktop models where they place their Hard drives under an array of Metal frames, where it is
Near impossible to just replace a Hard drive... ( I liken it to putting their drivees in FT. KNox... Not protected in any way by these metal bars... but Just for WTF?? reasons...Reading all the PC Magazines... I have read repeated complaints of HP Flat Out Denying to honor Warranty Claims- Personna;ly I like their Printers/All in Ones... Even their Software for these are HORRIFIC.hOPEFULLY Goodbye to HP Computers as a company...

19.8.2011 10:27 #9

DVDBack23

Wall Street agrees with all the comments here, HP down 21% today

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19.8.2011 10:51 #10

LordRuss

I'm just scared that they're supposedly expanding on their software division... After having tried multiple times to get their enclosed software to work with their printers... I have but just about given up on HP altogether. Other than a laptop, their printers are all I buy & given their current software to hardware SNAFUs I don't even buy their printers now.

These folks had better stop bloat-waring the crud out of their equipment & find new management before they go the way of the dodo as well.

http://onlyinrussellsworld.blogspot.com

19.8.2011 11:37 #11

FreddyF

I find it totally amazing that they feel they can succeed in the software/services industry where far more companies fail. Especially after doing so well with all their other brilliant endevors. Sell that HP stock quick, you might get something for it.

I can't tell you how many companies have killed good software and hardware because they tried to tie services to it and when the services didn't sell, they kill it because they banked on the service not the product people were buying. I don't know where they keep finding these morons running the companies, but there doesn't seem to be a limit to their stupidity and the BOD's willingness to let them bury companies.

19.8.2011 12:29 #12

Mr-Movies

Quote:fplmanSend

HP has been a failure as a business for several years- the Poorly Constructed PC's Laptops and Desktops- the Horrid repeated Failure tio honor Warranty's, Just a Pathetic company... I've just been waiting for this to come to a Head, which it has now- I own A Computer Tech Business, so I KNOW how Stupidly many of their Computer Models have such repeated failure rates.... And The Desktop models where they place their Hard drives under an array of Metal frames, where it is
Near impossible to just replace a Hard drive... ( I liken it to putting their drivees in FT. KNox... Not protected in any way by these metal bars... but Just for WTF?? reasons...Reading all the PC Magazines... I have read repeated complaints of HP Flat Out Denying to honor Warranty Claims- Personna;ly I like their Printers/All in Ones... Even their Software for these are HORRIFIC.hOPEFULLY Goodbye to HP Computers as a company...

Quote:LordRuss

I'm just scared that they're supposedly expanding on their software division... After having tried multiple times to get their enclosed software to work with their printers... I have but just about given up on HP altogether. Other than a laptop, their printers are all I buy & given their current software to hardware SNAFUs I don't even buy their printers now.

These folks had better stop bloat-waring the crud out of their equipment & find new management before they go the way of the dodo as well.

The facts are HP has never been good at software solutions but used to be excellent at hardware solutions. Now they suck at both and their customer service is about the worst out there. They are also talking about selling their PC business as well. Many have complained to them on their short comings but they are too arrogant to learn from their mistakes or to listen to others. Just to prove this they still think that software is their strength, wow!

Most of us new this new tablet venture was going to fail on these premises so it is no surprise what has happened.

19.8.2011 12:42 #13

sheri1983

Originally posted by FreddyF: You can only make profits as long as you sell a product people are willing to buy. Spoken like a true iNut.

I hate when people look at "user experience", instead of the TRUE measure of a quality tablet .... the specifications! The specs on the iPad 2 blow! Who would buy that thing? Damn iNuts! Judging by the sales guesstimates, the iNuts must no longer be an endangered species.

Who really gives a crap about whether a tablet is stable, easy to use, responsive, and has plenty of apps? Give me raw, unadulterated power over all that junk any day!

In business, we don't want a tablet that "just works". What we REALLY want is a tablet that leaves us wondering all day "Why doesn't this thing work?!?!", right?

Sent from my HP iMOuttaTouchPad

19.8.2011 15:43 #14

Mr-Movies

Well FreddyF's point is correct and at first Sheri I thought you were off base but your point is also valid too.

There are way too many iNuts basically due to our dumbed down society. And I only see this things getting worst we certainly haven't hit bottom even though it may seem that way.

19.8.2011 16:01 #15

DVDBack23

Originally posted by sheri1983:
I hate when people look at "user experience", instead of the TRUE measure of a quality tablet .... the specifications! The specs on the iPad 2 blow! Who would buy that thing? Damn iNuts! Judging by the sales guesstimates, the iNuts must no longer be an endangered species.

Who really gives a crap about whether a tablet is stable, easy to use, responsive, and has plenty of apps? Give me raw, unadulterated power over all that junk any day! This may seem like a reasonable response but it isn't. A good majority of the world don't understand what is underneath the hood of their smartphone or tablet and an even bigger majority don't understand what the numbers mean if they do know the specs.

They want a tablet that just works, and has the most apps and is stable. The more user friendly Android gets, the better for competition but for now Apple has to do very little to keep its strong share of the tablet market.

And before I get branded an "iNut," I do not own even one piece of Apple hardware or software (iTunes, are you kidding me?), have owned Android phones since Android 1.1, have a PC with Win 7 and a Chromebook with Chrome OS and Ubuntu 11.04. One does not have to be a fanboy or an economics major to understand the basic principles behind margins, profits and branding.

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19.8.2011 16:35 #16

WierdName

The only thing I can think of is how incredibly ironic you can watch a couple shows on CBS and still see the annoying, page skin ad with the commercial "he bought a Thrive tablet, isn't he bright?"

Doesnt expecting the unexpected make the unexpected expected and therefore mean youre expecting the expected which was the unexpected until you expected it?
"Opinions are immunities to being told were wrong." - Relient K

19.8.2011 16:56 #17

plutonash

Originally posted by sheri1983: Originally posted by FreddyF: You can only make profits as long as you sell a product people are willing to buy. Spoken like a true iNut.

I hate when people look at "user experience", instead of the TRUE measure of a quality tablet .... the specifications! The specs on the iPad 2 blow! Who would buy that thing? Damn iNuts! Judging by the sales guesstimates, the iNuts must no longer be an endangered species.

Who really gives a crap about whether a tablet is stable, easy to use, responsive, and has plenty of apps? Give me raw, unadulterated power over all that junk any day!

In business, we don't want a tablet that "just works". What we REALLY want is a tablet that leaves us wondering all day "Why doesn't this thing work?!?!", right?

Sent from my HP iMOuttaTouchPad

It's a tablet. None of the high end android tablets that have another half a gig of ram and a slightly better resolution display than the ipad2 come close to "raw power". If you want power get a custom desktop. But for tablets that are used in hospitals by doctors, teachers for special needs kids, and mainstream consumers. It's all about the user experience. Not to say honeycomb doesn't deliver that but for most cunsumers who aren't tech savy iOS meets all their needs.

19.8.2011 17:15 #18

sheri1983

Originally posted by plutonash: for most cunsumers who aren't tech savy iOS meets all their needs.
iDiots! Everyone who uses iOS is an iDiot!

19.8.2011 17:56 #19

WierdName

Originally posted by sheri1983: Originally posted by plutonash: for most cunsumers who aren't tech savy iOS meets all their needs.
iDiots! Everyone who uses iOS is an iDiot!
I'm pretty sure you're being sarcastic. However, iOS has its area. Ignoring everywhere else, their tablets are more expensive than Android ones. But they claim they "just work." Personally, I've seen them crash and they are more restrictive with what the 'power user' can do. I wouldn't go around calling all iOS users "iDiots" but I might use that term with those that vehemently assert iOS is the only OS that anyone and everyone should use.

The main point is that Apple has nothing to do with this thread and making rather bold claims one way or the other is likely to only start a flame war. I will now be going to the hypothetical Switzerland of the internet and let everyone else fight it out.

19.8.2011 18:12 #20

leglessoz

I'd buy one at a seriously reduced price just to play with the thing. Surely selling them at a huge reduction in price is better than taking a $100 million loss or is that how HP thinks? Probably why it is going to hell.

20.8.2011 03:30 #21

LordRuss

Originally posted by DVDBack23: One does not have to be a fanboy or an economics major to understand the basic principles behind margins, profits and branding. No truer words have been spoken.

http://onlyinrussellsworld.blogspot.com

20.8.2011 09:13 #22

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