PALO ALTO, Calif. (TheStreet) -- Hewlett-Packard (HPQ) has completed its $1.2 billion Palm acquisition and is taking aim at Apple (AAPL) and Research In Motion (RIMM) in the booming smartphone and tablet markets.
The deal sent shockwaves through the tech sector when it was announced earlier this year, marking a change in direction for computer and server giant H-P.
In addition to new phone hardware, H-P is also getting its hands on Palm's highly-regarded WebOS. With multitasking capabilities, WebOS is a viable alternative to Apple's iPhone OS and Google's (GOOG) Android software and is seen as the jewel in Palm's crown.
H-P CEO Mark Hurd has already nixed suggestions that the deal is all about smartphones, explaining that the phone maker's IP will boost H-P's mobile device strategy."With webOS, HP will deliver its customers a unique and compelling experience across smartphones and other mobility products," said Todd Bradley, executive vice president of H-P's personal systems group, in a statement released on Thursday. "This allows us the opportunity to fully engage in growing our smartphone family offering and the footprint of webOS." Jon Rubinstein, the former Palm CEO, will now head up a Palm business unit within H-P, reporting to Bradley. Palm will be responsible for webOS software development and webOS based hardware products, according to H-P. H-P shares dipped 42 cents, or 0.97%, to $42.86 on Thursday, mirroring the broader retreat in tech stocks that saw the Nasdaq fall 1.30%. -- Reported by James Rogers in New York Follow James Rogers on Twitter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV