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HP's acquistion of PALM gives tech giant an edge     Date added: 05/20/2010
 

 — AMI Mobility report says it gives key ingredients for integrated mobile platform —

New York, New York, May 20, 2010HP’s recently-announced acquisition of Palm for $1.2 billion will enable the technology giant to offer an integrated mobile experience to businesses and consumers worldwide on a variety of devices. By controlling both the software and hardware for smartphones, tablets, netbooks, and other form factors, HP can control its own destiny, a new AMI report finds.

Palm’s webOS is widely regarded as an excellent operating system designed specifically for mobile usage, and HP has the financial strength, distribution channels, global reach, and marketing muscle to make good use of Palm’s assets. The road will not be easy, but the market for mobility products and services is large, growing, and still in its early stages. The global market for mobile devices is wide open, despite Apple’s tremendous success with the iPhone and iPad, the increasing adoption of Google’s Android OS, and RIM’s presence in the enterprise.

According to David Shiang, VP at AMI-Partners, “There’s certainly room for an established brand such as HP to introduce innovative mobile devices and gain significant share. Many in the industry consider webOS to be the best mobile operating system available, and HP should be able to be capitalize on what looks like a low-risk acquisition.”

Research in 12 top countries conducted by AMI-Partners shows that the market for smartphones among small and medium businesses is growing fastest in India and China, with the U.S. not far behind. By 2014, AMI expects that China will be the second largest market, trailing only the US (see figure below).

Among small businesses, BlackBerry is in wide usage, while the Apple iPhone has yet to make major inroads in China, India, and Mexico. HP and Palm, by comparison, have installed bases in these countries that can be leveraged when HP rolls out new products based on webOS. Among medium businesses, BlackBerry and Apple have good presence where they are offered, which is to be expected. However, HP and Palm devices are also in use, especially in the US, UK, and India. HP’s global brand and installed base, coupled with the Palm acquisition, should allow the company to become a much bigger player in the growing market for connected mobile devices.

Related Studies

AMI-Partners will soon be releasing a series of reports on SMB Mobility Market Opportunities covering the US, Western Europe, India, and China. The reports analyze the key drivers of SMB mobility and the evolving range of devices and services that enable a mobile workforce. They also provide actionable go-to-market perspectives related to SMB mindset, attitudes, buying behavior, purchase decision-making, influencers, and IT adoption. Click here for more information about the report series or contact David Shiang at dshiang@ami-partners.com.

For more information about the above studies, AMI-Partners, or our global SMB research, call 212-944-5100, e-mail ask_ami@ami-partners.com or visit www.ami-partners.com.

About Access Markets International (AMI) Partners, Inc.

AMI-Partners specializes in IT, Internet, telecommunications and business services strategy, venture capital, and actionable market intelligence — with a strong focus on global small and medium businesses (SMBs), and extending into large enterprises and home-based businesses. The AMI-Partners mission is to empower clients for success with the highest quality data, business strategy perspectives and ―go-to-market solutions. Led by Andy Bose, the firm has built a world-class management team with deep experience cutting across IT, telecommunications and business services sectors in established and emerging markets.

AMI-Partners has helped shape the go-to-market SMB strategies of more than 150 leading IT, Internet, telecommunications and business services companies. The firm is well known for its IT and Internet adoption-based segmentation of the SMB markets; its annual retainership services based on global SMB tracking surveys in more than 25 countries; and its proprietary database of SMBs and SMB channel partners in the Americas, Europe and Asia-Pacific. The firm invests significantly in collecting survey based information from several thousand SMBs annually, and is considered the premier source for global SMB trends and analysis.

Media Contacts:

Quoted Analysts: David Shiang. Phone: (781) 856 8142 ext 526. Email: dshiang@ami-partners.com

Media Relations: In US (New York): Nancy Carty. Phone: (212) 944 5100 ext 581. Email: ncarty@ami-partners.com

                                In EU (London): Claudia Jachtmann. Phone: (44) 208 987 2756. Email: cjachtmann@ami-partners.com

                                In Asia Pacific (Singapore): Matthew Foo. Phone: (65) 6220 5535 ext 101. Email: mfoo@ami-partners.com

                                In India (Kolkata): Jyoti Singh. Phone: (91) 33 4003 3093 ext 223. Email: jsingh@ami-partners.com

                                In India (Bangalore): Rati Ghose. Phone: (91) 80 4148 2661 ext 36. Email: rghose@ami-partners.com

                                In India (New Delhi): Kuljeet Singh Abrol. Phone: (91) 97 1774 1919. Email: ksinghabrol@ami-partners.com

                                In China (Shanghai): Venu Reddy. Phone: (86) 21 6390 6298. Email: vreddy@ami-partners.com

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