HP: ‘We are not walking away from webOS;’ exclusive details from inside
An insider has given us details from an all-hands meeting HP just held with employees in the webOS Global Business Unit in light of today's announcement that HP will no longer make webOS devices.
Context & Ripple Effects
HP’s webOS unit had just been reshuffled in July, with Stephen DeWitt leading the global business unit and Jon Rubinstein moving to product innovation. The hardware decision follows a sequence of TouchPad price actions in August: a $50 promotion, a permanent $100 cut on the 16GB model, then another $50 discount amid weak sales.
HP is drawing a distinction between ending its own webOS device manufacturing and abandoning the operating system. That leaves the Global Business Unit responsible for preserving a software strategy after the product channel that put webOS in consumers’ hands has been withdrawn.
First-order effects
- HP stops manufacturing webOS devices, ending the TouchPad’s role as the operating system’s in-house hardware showcase.
- The webOS Global Business Unit must support HP’s stated commitment to the platform without a continuing HP-made device pipeline.
Second-order effects
- TouchPad price reductions and the manufacturing exit make webOS developers and prospective hardware partners reassess the size and durability of the platform’s device audience.
- HP’s webOS leadership must shift its case for investment from device sales to software and product innovation, the areas assigned in July’s reorganization.
Third-order effects
- The episode highlights the fragility of a proprietary operating system when its sponsor cannot sustain hardware distribution: software ecosystems need a dependable route to users, not only a differentiated interface.
- If other device makers do not carry webOS, HP’s attempt to separate platform value from hardware ownership will test whether an operating system can remain strategically relevant without a captive product line.
The trend: HP’s reversal is part of a broader test of whether companies can sustain proprietary software platforms after the hardware channel that distributes them falters.