HP staying coy over re-entry in tablet wars

HP has been noticeably absent from offering consumer tablets, although that is set to change - even after a failed attempt to crack into the market last year.

The new Hewlett-Packard Spectre is shown at the HP Expo in Shanghai, China. Jonathan Browning for The National

SHANGHAI // Shoppers looking for a sleek new tablet can easily find offerings from companies such as Apple and Samsung.

But one brand that has been noticeably absent is Hewlett-Packard (HP), the biggest computer maker in the world.

This week, at a product exposition held in Shanghai, HP unveiled about 80 new products, including slim and lightweight "ultrabook" laptops, a 3D printer and a wireless computer monitor.

But the American electronics maker stopped short of revealing its forthcoming consumer tablet, which retailers and analysts expect to hit stores during the final quarter this year.

"We're very focused on new form factors, and there are some things coming," teased Stacy Wolff, the vice president of PC design at HP.

"Just can't share it today."

HP is taking its time to perfect its product, experts say, as the company needs to avoid a digital déjà vu after having already tried, unsuccessfully, at cracking into the consumer tablet market last year.

On its website, the company still has a notice up for people who bought its previous consumer tablet - the TouchPad.

"Thank you for your purchase of an HP TouchPad," the company's site reads. "We are unfortunately out of inventory."

What many customers may not know, however, is that HP pulled the plug on its TouchPad by discontinuing it just weeks after it went on sale last year.

Back in 2010, HP spent about US$1.2 billion (Dh4.4bn) to acquire Palm, the company once known for its smartphones and personal digital assistants. Together they then created the TouchPad, which became HP's first consumer tablet to run the webOS operating system that it had acquired from Palm.

But product reviews were mixed, and sales were lacklustre. To clear out TouchPads that were available, some retailers ignited a fire sale and sold each one for just $99 - a sharp drop from its original cost of $500.

"From a PR [public relations] perspective, I'm sure that was something they wanted to avoid," said Bryan Ma, who attended HP's event in Shanghai and is the associate vice president of client devices for IDC, a market research firm.

Meg Whitman, the chief executive of HP, has said that a new webOS operating system will be ready in September once it becomes open-source, meaning that any software developer can work on it.

In the meantime, HP is trying to sell its Slate 2 tablet that is aimed at business clients. But sales of this model have been limited; Apple's iPad still accounted for more than 97 per cent of all tablets activated globally by business users during the first quarter this year, according to a survey from Good Technology.

"In the fastest-growing category - tablets and smartphones - they don't have a strong product lineup yet," said Ronaldo Mouchawar, the chief executive of the online retailer Souq.com. "Apple and Samsung are ahead of competition."

Playing catch-up will not be easy for HP.

Data released this month shows an interesting battle brewing on the company's home turf in the United States: while HP edged out Apple in terms of overall computer sales, it's barely keeping ahead because of its lack of tablet offerings. HP shipped 15.8 million computers in the first quarter this year - just 40,000 more than Apple, according to data from the research consultancy Canalys. Moreover, three quarters of Apple's computer shipments consisted of the iPad.

"There's certainly going to be a lot of pressure coming from [existing makers of] tablets," said Mr Ma.

Still, retailers in the Emirates have not written off HP's foray into this market - yet. "Things can change very quickly in this industry," said Ashish Panjabi, the chief operating officer of Jacky's Electronics.

"Three years ago, tablets wasn't a category anyone spoke of."

Some note that the ace up HP's sleeve may be a partnership with another technology giant - Microsoft.

HP plans to harness Windows 8, the latest version of Microsoft's software, in a new series of products due out this year. "[There] is preparation for Windows 8," said Salim Ziade, the general manager for HP's personal systems group in the Middle East. "Our CEO has said we'll be playing in that field."

While HP is not the only company Microsoft will team up with, the partnership might help HP become a serious contender in the tablet space. "It just comes down to whether they do the right kind of hardware, and what's the right kind of pricing, distribution and all the stuff that, in theory, they ought to be good at," said Stephen Baker, who was also in Shanghai and serves as the vice president of industry analysis at the NPD Group.

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