Hp Acquires Palm And Notifies Wireless Industry They Will Be Next Big Time Player

Most people are not aware of this, but HP has already been one of the players in

the handset side of the cell phone industry over the last several years. Why didn't you know? There are several reasons, but one, the company has done a poor job introducing anything worth talking about, so far, and two, they have done nothing to build their brand

That may be about to change. HP and Palm have announced they intend to merge. Along with all the other changes going on in the industry this could be a big one.

This merger could both give Palm the money they need to stick around and compete, and give HP an important brand name in the cell phone space, and more specifically the smart phone segment of that space, along with the new webOS that has been so applauded over the last year since it was introduced.

What plans does HP have for Palm going forward? We don't yet know and perhaps even HP does not know, but the potential could be transformative for the company and even the industry if it is done right. We have seen the cell phone industry completely reinvent itself over the last several years.

Suddenly the top players and the names in the news are not the more traditional cell phone names like Nokia, Samsung, LG or even RIM, Sony Ericsson, Motorola or HTC.

Instead new, non-wireless names are top of mind like Apple and Google. Dell and Lenovo are also getting into the business. The industry is transforming itself over the last few years and I expect we will see more non-wireless companies entering the mix.

With all that change HP is one of the players, but they have so far done nothing to be noticed in a big way. In the wireless industry you are either big-time or no-where.

This acquisition of Palm could put HP on the map in a big way, at least for the short-term. It depends what they do next.

The wireless business is unlike most others. Even Apple has to advertise and market like crazy. If HP continues to be quiet, the value of Palm will be limited. However if they do turn up the volume they could indeed become an important player in the changing space, and quickly.

There has never been a better time for the company to do this since the industry is in flux again. The industry has gone through several major transformations over the past 15 years. It will likely continue and go through another a few years from now. The industry is constantly evolving.

However this new wireless industry focused on the smart phone market looks like it will be important and will likely create new leaders in the space.

Wireless networks like AT&T, Verizon, Sprint and T-Mobile always seem to remain important. That is because there are no other networks. However there are many handset makers and that is where the excitement is coming from these days.

What changes could HP make to itself and to the industry going forward? Most importantly they can focus on building and expanding their brand in this new smart phone sector of the business.

On one hand HP is fortunate they don't have a strong brand to change, which makes it easier for them, but they must begin building immediately before the opportunity slips through their fingers.

They can also let Palm continue to build and grow its business by mixing in the thinking from HP. They can also use the Palm and webOS technology to help build their name in the business. They also have the power to reinvent the industry and the company with this new technology.

Palm didn't because they are not a company that has ever focused on marketing and branding. HP could change that.

All of this can happen quickly if they know what they are doing.

The question is will they? Will they take advantage of this enormous opportunity? Do they know what to do next? If they want to be important in wireless going forward they have to do things differently than they have in the past, which did not have very good results so far.

We will see what HP and Palm does over the next several months and quarters with regards to changing technology and thinking. Will it be a big transformative change, or more of the same and not top of mind after several quarters? We'll have to keep our eyes on the company and hope for the best.

by: Jeff Kagan

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