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HP smartphone not coming in 2013, says CEO Meg Whitman

HP smartphone not coming in 2013, says CEO Meg Whitman

But HP will need one within five years to avoid missing out on a big segment of the market, its CEO said

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HP has no plans to launch a smartphone next year but will need to sell one eventually to avoid missing out on "a huge segment of the population," CEO Meg Whitman said yesterday.

Whitman told the Fox Business Network last month that HP would need to offer a smartphone because phones have become the primary computing device for people in many countries. "We are working on this," she said at the time.

Asked about the smartphone plans at HP's financial analyst day yesterday, Whitman acknowledged she had made "quite a stir" with her earlier remarks.

"We don't have any plans to introduce a smartphone in 2013, but we've got to start thinking about what is our unique play, how do we capture this element of the personal computing market?" Whitman said.

HP has to offer every kind of device, from workstations through all-in-one PCs, laptops, hybrid PCs, tablets "and, ultimately, smartphones," she said.

"I believe that five years from now, if we don't have a smartphone or whatever the next generation of that device is, we'll be locked out of a huge segment of the population in many countries of the world," she said.

HP launched some smartphones and tablets last year based on its webOS but, under former CEO Leo Apotheker, stopped developing those devices.

Also on Wednesday, Whitman seemed to cede the market for consumer tablets to Apple but said company CIOs would rather have a device based on Windows.

"The consumer market, I would argue, is quite well-served by the tablet in the marketplace today from Apple," she said.

"But every CIO I talk to wants to have a Windows device, backward compatibility, the ability to control those devices from a security perspective."

Earlier in the day, Todd Bradley, who runs HP's Printing and Personal Systems Group, said HP expects tablet sales to businesses to grow at three times the rate of sales to consumers.

HP used the analyst day to expand on a restructuring plan announced in May to help turn around its finances. As part of the effort it will reduce the number of products it sells, including eliminating a quarter of its PC platforms and 30% of its printer models over the next two years.

It also offered a weak financial outlook for its next fiscal year, saying it expects earnings per share of $3.40 to $3.60. That was well below the consensus estimate of $4.18 from analysts polled by Thomson Reuters.

HP's shares plummeted on the news, falling almost 13% to $14.91 at the close of yesterday's trading.

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Comments

  • Myles Didnt HP do really well out of the tablet market and knocked apple off the top of their perch I think that is how it went anyway
  • Myles We dont need a HP smartphone
  • scxfan Jerry BrownLOL
  • Stephen Dedalus I could get behind this I use an HP Envy laptop because it offers me options that MacBook Pro doesnt with a similar build quality and high battery life If I was ever considering dropping my iPhone in the future it would be for a device like that
  • Joe Mac Stevens It doesnt matter what CIOs want in five years most offices are going to allow you to bring your own devices
  • metro72 Everyone is ripping on Meg for this decision but she saw what a disaster the last attempt ended up like Shes trying to take a long term approach to this Nothing moves fast at HP well besides the revolving door for CEOs And sure theyve posted positions for 50ish webOS engineers Palm couldnt get webOS right in the 5 years they worked on it Id rather see it polished before they start slapping it on everything possible this time within a year of an acquisition I still have Pre Pre2 and Touchpad Love them and want to see them do well Would like to have them been a little better I welcome this approach way more than no approach at all I also understand that Megs comments are most likely referring to implementing a plan to develop Windows phones but clearly with an new investment in resources for webOS they are strongly considering offering devices on more than one platform
  • metro72 HP is not a platform company They decided that when they found out how hard it was with webOS Now that theyve made webOS open source they can still ride the wave and make some cheaper devices with webOS along with other companies who will most likely take a shot a a few webOS devices Meanwhile they will focus their primary attention to building and selling Windows tabletsphonespcs PCs and tablets now and phones when they figure that out again
  • aardman Only a handful of us will be present when irony one of the biggest casualties of the information revolution is finally laid to rest
  • aardman Hang on to the commodity PC business and put smartphone development on the slow lane Thats a great move by Ms Whitman Stockholders everywhere are rejoicing Stockholders at Apple at Samsung at Nokia etc
  • eagspoo She has revealed herself as completely clueless Funny
  • brian ltwhooooshgt Over ajollynerds head my comment goesltwhooooshgt
  • ajollynerd mobile phones will be the future of computingUmm not sure how to tell you this but mobile phones are the PRESENT of computing More people do more things on their mobile devices NOW than theyve EVER done in the past HP really missed the boat when Apotheker dumped WebOS and its devices The sound that HP heard after that was the sound of the door to the future closingApple Google and Microsoft sorry RIM essentially own the future at this point If HP wants to get into this market it will be as a niche player at best
  • dshan A phone within five years Thats what they should have said five years ago when the iPhone was released and even then it would likely have been too long Now even the year after next is too late
  • James Hassinger Meg is great As wonderful a leader of HP as she was a California governor
  • Corey Vision She just demonstrated a very clear understanding of the marketplace and is willing to take shit by announcing that HP needs a smartphone and wont be able to launch a good one in 2013 This is reality sobering as it may be to assclowns
  • ctyrider I sincerely hope youre being sarcastic Meg recognizing the mobile being the future of computing is about as enlightening as me recognizing that its dark at night or that jumping in a lake will get me all wetAnd to give another analogy - HP will be leading this revolution just as soon as my pet pig grows wings and flies off into the sunset
  • Andre Richards Shes a joke HP needs to cut their losses and dump this overpaid assclown and find someone with some vision
  • leicaman When we see this kind of nonsense all us Californians breath a big sigh of relief that we got Jerry Brown for governor Talk about dodging a bullet
  • Ted_T On the off chance you arent being sarcastic how exactly is HP going to lead anything after giving the competition a 7 year and at least 1 billion devices head start
  • Brian Meg is one smart cookie She recognizes that mobile phones will be the future of computing and will align HP to lead that revolution Cant wait
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