On HP's Q3 2011 earnings call it clarified both the reason for the shutdown and the exit timeframe for the webOS hardware division.

HP claimed that webOS hardware didn't meet internal sales goals. Combined with an increasingly competitive marketplace, HP decided that it was in its best interests and the best interests of its shareholders to exit the webOS hardware business. HP will shut down the webOS hardware division by Q4 2011.

If you're wondering why HP also expressed interest in spinning off/selling its Personal Systems Group. The earnings statement speaks for itself:

"Personal Systems Group (PSG) revenue declined 3% year over year with a 5.9% operating margin. PSG remains the PC market leader in terms of units, revenue and profit share. Commercial Client revenue grew 9% and Consumer Client revenue declined 17%.

HP wants to explore areas with higher profit margins (read: enterprise computing). Getting rid of its PC business while it's still doing (relatively) well makes the most sense from a timing perspective.

Source: HP Investor Relations

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  • retrospooty - Thursday, August 18, 2011 - link

    "HP claimed that webOS hardware didn't meet internal sales goals"

    Translation, Palm's crappy hardware finally did them in.

    I still hope they license or sell WebOS to someone that will use it copupled with decent hardware.
  • n00bxqb - Thursday, August 18, 2011 - link

    Here's where HP failed ...

    1) Store demos = Piles of crap. They're slow and buggy and completely turn customers off within 30 seconds of use plus customers couldn't view the app catalogue. Why they didn't just let retailers demo an actual unit is beyond me since the actual unit, especially after the last update, made it quite enjoyable to use. We sold quite a few at my store once we said screw what HP wants, we're putting a real one out along with the Touchstone charger.

    2) Half-assed marketing.

    3) Let all the employees purchase the units at ridiculously low prices, so even the customers that wanted to get them couldn't get them because they were sold out.

    4) GLOSSY BLACK PLASTIC !!! WHY ? If you were going to make it plastic, why wouldn't you make it a colour that isn't notoriously bad for showing fingerprints and dust ? How about metal ? I've heard people say, "Well, you can't use metal and have the inductive charging." Bullshit. My Palm Pre has a metal back, works with the Touchstone charger just fine.

    5) No rear webcam, 1.3 MP front webcam. WTF were you thinking ? Everyone else has a rear cam, even if hardly anyone uses it, stupid people compare features and numbers (unless they're iTards, but they're not your target audience) and if you're lacking in the features and numbers department, even if they're completely meaningless and useless, you will lose sales!

    Anyways, I just started doing a secure erase on my TouchPad, it's going back tomorrow. So pissed off at HP right now ... What a bunch of frickin' clowns.
  • Xebec01 - Friday, August 19, 2011 - link

    My Touchpad is in the box, too, ready to go back.

    HP should have imroved on or scrapped Palm's Touchpad design and put out something better. I just don't feel that they put any effort into the hardware.

  • Belard - Friday, August 19, 2011 - link

    HP sold about 25,000 Touchpad units since its release to the market about 6 weeks ago.

    Meanwhile... ASUS, RIM and Samsung sell about 200,000+ units a month... each.

    Apple pumps out 2 million iPads a month.

    RIM would have been a better fit for WebOS.
  • aspoiu - Friday, August 19, 2011 - link

    RIM is next...

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