Undoubtedly, HP has periodically sold consumers’ device and it has years of experiences in this space. But I don’t think that the company has been so much of successful in this space. Talking about its participation in Apple’s iPod sales, the company failed to prove itself. Yes, it’s the bitter truth. In January 2004, HP started to sell Apple’s iPod (with HP logo on the back) through its distributed channels. Apple targeted HP due to HP’s larger mass-market distribution network around the world. But, finally in July 2005, HP announced to terminate its deal with Apple. By the end of the deal, HP accounted for just 5% of total Apple’s iPod sales. However, as per agreement, HP could not develop or sell an iPod competitor until August 2006.
How HP’s Upcoming Tablet Is Unique?
Microsoft has created an opportunity for its Windows partners to make their presence in the Tablet segment, and that’s why, Acer, Asus, Lenovo, Dell and HP are in the queue; they are expected to launch their Windows 8 powered Tablet later this year. I haven’t any doubt about the capabilities of HP, but jumping into Tablet space is really a big task. Just a weeks before, I explained about the strategies of Lenovo with its Windows 8 powered Tablet, coming in October of this year.
HP executive–John Solomon–revealed that HP’s new upcoming Windows 8 powered Tablet will have ‘some unique intellectual property’ and also, the device is being designed by keeping enterprise user in mind. Like Microsoft, HP is also more focusing on the business professionals and that is the reason why the HP’s new upcoming Windows 8 powered Tablet will feature an enterprise dock, outdoor viewing support and a digital pen.
Price Could Be Fatal For HP’s Windows 8 Powered Tablet
Of course, the company is trying to make the product with unified look, feel and style. Currently, Amazon is offering Windows 7 running HP’s Slate 2 Tablet for $ 739, which seems quite expensive compare to some other competitive Tablets in the market. Then, how much price should we expect for HP’s upcoming Windows 8 powered Tablet?
If we consider HP’s previous track record of Tablet selling, then it was not up-to-the-mark. Along with a good marketing strategy, HP needs to have a strong mobile ecosystem in order to lure a significant number of users. It’s also true that iPad’s cannibalization is continuously threatening to HP’s PC business. The world’s biggest PC manufacturer is currently facing financial crisis and it’s planning to layoff 27,000 jobs. In 2008, HP acquired Electronic Data Systems for $13 billion, but the acquisition has turned out to be fatal for the company.
Milestone Destination For HP
Hewlett-Packard is still a nascent player in the Tablet segment–which has become a hottest trend for today’s market. Apple’s iPad ecosystem is a big entrench for the HP’s upcoming Tablet in business segment. I have already described that 91% of business professionals (those having Tablet) are currently using Apple’s iPad and clinching these users towards its own platform, it would be a tougher task for HP if it’s targeting to businesses.
I’m not sure, but HP is now planning to create a consumer-oriented mobility unit. HP has not so much of experiences about consumer mobile products. It has sold laptops through distribution channels and it has been lashed out for selling printers; consumers complaint for the overpriced ink product. And I think, trying to a new platform, especially for HP having a poor track record, is not a good indication.