Now running WebOS.

MARCH 9, 2011 • In an interview with Bloomberg News, Hewlett-Packard Co. chief executive Leo Apotheker said that starting in 2012 every HP computer sold will have the option of running the WebOS in addition to Windows 7. The inclusion of WebOS is play to make the platform more viable to developers as HP brings more tablets and smartphones to market. HP acquired WebOS when Palm Inc. was purchased last year for $1.2 billion.

Impact: DFC sees tablets as mobile PCs that complement desktops, and we believe consumers are thinking the same thing. WebOS had a lot going for it as a platform, but Palm lacked the resources to make WebOS competitive with the iPhone via Palm’s own proprietary mobile phones. Android was able to compete because it was given away free to hardware makers. Tablets may yet give WebOS a foothold, however. It’s still early in that game. The iPad has the early lead, and Android has shown to be an apt choice to power tablets. Yet most Android-based tablets are still expensive, and often seem like large cell phones.  Linking tablets with PCs in the minds of consumers via WebOS, if HP can introduce tablet devices that can innovate at a reasonable price, could be a successful strategy.