By Ashok BindraThat’s right. Speaking to Hewlett-Packard staffers in Bangalore, India late January, the new CEO Leo Apotheker emphatically stated that starting next year, every one of the PCs shipped by HP will include the ability to run WebOS in addition to Microsoft’s Windows, reports Bloomberg Businessweek.
In speaking to Bloomberg (News - Alert) Businessweek reporter Aaron Ricadela, Apotheker said the move is aimed at enticing software developers to create a wider range of applications that would differentiate HP PCs, printers, tablets and phones from those sold by rivals. “You create a massive platform,” he added.
However, the Bloomberg article does not provide further details on WebOS powered PCs. WebOS, the computer operating system, was acquired last year when HP bought smartphone maker Palm Inc. for $1.2 billion.
While software developers have built more than 350,000 apps for Apple (News
- Alert) devices and more than 250,000 for Google’s Android Market, the WebOS has only 6,000 apps, according to HP.
Speaking to Bloomberg Businessweek reporter, Gleacher & Co. analyst Brian Marshall said, “Their Achilles’ heel is software.” Gleacher & Co. in San Francisco has a “buy” rating on HP shares. According to the research firm, HP gets 70 percent of sales from computers, storage, networking and printers, 27 percent from providing IT services, and only 2.2 percent from software.
Meanwhile, analysts surveyed by Bloomberg predict HP’s sales may rise only 4 percent in fiscal 2011 and 2012 as compared to an average 8 percent increase annually under former CEO Mark Hurd (News - Alert). As reported by Bloomberg, HP’s quarterly and annual sales forecast presented on February 22 missed analysts’ projections amid lackluster consumer demand and sinking services revenue.
The Businessweek report suggests that Apotheker plans to revive HP’s emphasis on product quality, in addition to advancing its cloud computing. In his opinion, when hardware performs better right out of the gate, the company incurs lower service and warranty costs -- and customers are happier. Businessweek reporter Ricadela wrote that HP’s new chief is rehiring quality-assurance experts fired under former CEO Hurd and giving new responsibilities to those he thinks got “sidelined” by the former boss.
Cutting cost is another challenge for Apotheker who has been traveling to HP offices worldwide to better understand the computer giant’s operations around the globe.