Barron: HP acquisition of Palm spoiler mobile phone market – HP's acquisition of Palm, spoiler-it industry

REVIEW: "Barron" website, wrote today, Hewlett-Packard to spend 1.2 billion acquisition of Palm will change the current intelligence Mobile Industry, competitive situation, and will further intensify competition in the market.

The following is the full text:

Hewlett-Packard last week announced it would spend 1.2 billion acquisition of Palm. The latter situation now churn and losses increased, if no acquisition is likely to go bankrupt. Palm said last week in May where the quarter, revenue will be only 090 million -1 100 million U.S. dollars, substantially lower than Wall Street expected. The company also said the quarter's cash expenditures will reach 240 million U.S. dollars up to then hand the cash holdings of at least 3.5 billion dollars, according to this speed, Palm's cash at the end of 2010 will be exhausted.

But now, those fears will disappear. HP will use the acquisition of the most core values latest WebOS Palm operating system to develop new phone Tablet PC This and other mobile devices or the Internet, financial strength of the Hewlett-Packard will also develop in these areas and has invested heavily in the market. This is Palm's main investors, in terms of U.S. private equity firm ElevationPartners undoubtedly good news. According to the statistics of Wall Street, the company invested in the Palm of 4.6 billion dollars, but received only about 5% of poor earnings. In addition, the acquisition of the Palm's staff is good news, which can be maintained outside jobs, some senior staff are also expected to continue to work to stay in Palm earn valuable bonus. For PalmPre or Pixi users, this can be considered good news, these two phones with the WebOS operating system. In addition, for the development of a large number of applications for the WebOS developer, this is indeed cause for celebration.

Smart phone industry, but for others, this is not good news. In fact, as U.S. investment bank Avian Securities analyst Avi? Cohen (AviCohen) frankly pointed out, this "bad news for everyone," he was referring to Apple , RIM, Nokia and Motorola and other handset makers. Cohen said that as the PC makers in other areas have good margins, so do not get as many mobile phone manufacturers can maintain that kind of margin handset business operations, "which means they are grabbing market share will be more aggressive, but Naturally, this will also pull down gross profit margins for all manufacturers. "

Previously, smart phone manufacturers to compete with Palm. Palm has excellent operating system, but the cash flow squeeze, two mobile phones Sell Poor condition, few developers and worried about the future of Palm. But now, these companies must compete with HP, but HP is the world's largest PC maker, quarterly sales of nearly 30 billion U.S. dollars, may be the equivalent month of the quarter Palm5 300 times revenue.

Now, the smart phone market, competitors virtually every major consumer technology companies, from Google, Microsoft to Sony, Samsung and Lenovo, Hewlett-Packard to join the fray will only make the market faces more competitors challenges.

All shocks Following HP buy Palm incident on the impact of the various manufacturers of:

Apple: The soft underbelly of the major mobile phone manufacturers in the least, but certainly more willing to work with growing losses, declining share of the Palm competition, rather than with the HP counter. HP plans to enter the Tablet PC market, and has been in the Internet this and Desktops In the field to compete with Apple.

Microsoft: HP acquisition of Palm mean the loss of a potential Windows Phone7 users. If not buy Palm, Hewlett-Packard will be waiting for an opportunity to enter the smart phone market, while the development of mobile phone based on Windows operating systems is a very obvious choice.

Google: (prior to the acquisition of Palm) HP may also choose to develop Google Android mobile phone operating system. Google Android suffered some setbacks recently, so Google is concerned, the worst thing is to see developers switching to WebOS platform.

Motorola: Motorola chose a big bet on Android, but if the company a year ago bought Palm, life would be better than many. Currently, Motorola to compete with Google, while keeping with the latter Cooperation Relations. Motorola last week announced first quarter earnings exceeded expectations, but the mobile phone unit sales are still declining.

RIM: If HP can tentacles deep into the enterprise IT Sector, and to convince large companies to replace the BlackBerry WebOS, so RIM would be a potential big losers.

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