What’s more, it seems exceptionally bold that HP cares very little that RIM has all but fallen by the wayside after having every advantage in the world as once a market leader.
So HP, which fell flat on its face after its last smartphone attempt following its Palm acquisition, needs to answer some very important questions here: What will be different this time and should Wall Street care?
That might sound harsh, but it appears the company has found a new leader in Meg Whitman who, so far, appears to have placed the company on a path towards a solid recovery.
Moreover, the company has recently been on a shopping spree. Among its recent software acquisitions were 3PAR, Arcsight (in 2010), and, most recently, scooping up Autonomy Software for a little over $10 billion in cash.
In addition to these moves, it has recently put plans in place to consolidate its PC and printing divisions while reducing its workforce — moves the company anticipates will help it save $3.5 billion in expenses over the next couple of years.
But the recovery is not yet complete. Entering smartphones seems grossly premature, if not radically misguided.
I think at this juncture the company’s efforts can be better served by focusing on its recovery and looking for ways to grow its high-margin segments, such as services, networking, and storage.
It must also figure out ways to leverage its recent software acquisitions to synergize not only with its existing businesses, but its cloud strategies — areas where it can certainly dominate.
Smartphones will not be one of them. Not now. Not yet.
—By TheStreet.com Contributor Richard Saintvilus
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At the time of publication, Richard Saintvilus was long Apple’s shares and held no position in any of the other stocks mentioned.