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H-P Buys Palm: It's All About Tablets

Stocks in this article: HPQPALMAAPL

I'm sure H-P won't make the same kind of marketing mistake. Before Roger McNamee and Elevation Partners took control of Palm, the company had a terrific marketing/press guru, who now just happens to work for H-P. I'm sure he still remembers where all the "dead bodies" are stashed. H-P would be nuts not to get some quick advice from its expert.

A new cellular handset might be a nice early step for the new H-P/Palm to make, maybe something with a larger screen (not as large as a tablet) with a terrific layout like the current Pixi. And it needs to make it a world phone so that buyers around the world have a chance to experience the terrific operating system.

As for more WebOS apps, if you build it they will come. When H-P starts to build new hardware there should be enough interest generated with the application-devising gurus to give the Palm store a large kick-start.

There are dozens (maybe hundreds) of Palm patents too. I'm sure that entered into the equation as well.

All in all, this is a great move for H-P and a win-win for consumers, more of whom need to experience a WebOS device. This also is great for Palm engineers who'll get another chance at bringing Palm products back to life.

Gary Krakow is TheStreet.com's senior technology correspondent.
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