Amazon in talks with HP to buy Palm
venturebeat.com
venturebeat.com
Jeff Bezzos, on the other hand, is a true visionary in my opinion and I would be happy to see my webOS HP Profile become an Amazon profile sometime soon.
My only doubt though: will they make phones?
Within three years Amazon will come out with their own phone. It will be the same game plan that they used with the Fire and gear it towards the low end. Eventually they will go towards the high end.
Phones don't make sense in Amazon's model at all to me. Of course, I could be wrong, but unless it's driving sales of Amazon products, like the Kindle does, there's no incentive.
To quote Bezos himself, "We think of Kindle Fire as an end-to-end service"
http://techcrunch.com/2011/09/29/bezos-in-the-modern-era-of-...
At the end of the day, maybe I'm just arguing semantics, but the fact remains that this isn't a "tablet" in the same light as other Android "tablets." It's a bit of a subtle difference, and I think it's that difference that is crucial and will spell massive success for the Fire. Their ability to sell it at what I assume is a sizable loss isn't hurting their chances either.
Apple and Amazon are in the same space but came from two different sides. And Apple is trying to cover the "harder" side, which is server and cloud computing. While Amazon had that down before diving into consumer HW.
I do think they are missing an opportunity without a camera. Think about the opportunity to scan bar codes or book covers and instantly see the Amazon price, and purchase right there. Imagine being in Barnes and Nobles and buying the book on your Fire.
The smaller screen isn't ideal as a tablet for most media but people still do use it. The phone is the main way most people have access to the web.
I'm not making the case for a WebOS acquisition, just an Amazon phone. It just seems like there is a hole in Amazon's product offerings if a phone isn't available.
It's an extremely competitive, painful market. MS are struggling, Palm have already tried once and failed. Amazon is taking another approach (having their own AppStore on Android) and it's working out for them.
Hardware was Palm and WebOS's weak spot. An Amazon acquisition could be many things, but I very much doubt it's a play for any hardware gains.
Certainly, if they consider themselves competitors to Android Tablets, it would make sense to get the OS under their control, while perhaps ensuring a certain level of compatibility for app porting, etc.
I don't see anything undoubtedly about it. The celluar phone market is a quagmire.
This proposed webOS purchase is to hedge their bets against Google keeping ICS and future versions closed source. Amazon can't out a 10" Kindle tablet with the underlying system based on Gingerbread. The Amazon services could be provided but there would be no apps and games made for it.
Why not? What makes Gingerbread so inappropriate for a tablet compared to Honeycomb or Ice Cream Sandwich? Amazon can tabletize Gingerbread in their fork.
(2) Amazon is locked out of Google Services and the latest version of Android, if ICS or Jellybean has a truly killer feature/service they could get their clock cleaned by other Android vendors. Hoping Google will always release the source early on releases yeah you might not want your eggs in that basket.
(3) Integrated development ala Apple can be the most profitable model. (or it can not, cough Palm)
(4) There's a lot of IP here and Amazon doesn't have a lot of patents.
(5) The tanking of everything WebOS may mean the price is very cheap. Maybe they implement a WebOS-like layer in Android.
Also, a lot of people seem to be assuming that Amazon is looking to upgrade the underlying version of Android. I think they are forgetting a key part here; Amazon is running a fork, and I think it's pretty likely that the only compatibility they care about is with Android Apps (and Bezos has said they will work hard to keep the Kindle Apps compatible with other Android platforms). The OS version doesn't matter at all, as long as the device is fast and pleasant to use, which by all accounts, it is here. There's really no reason they couldn't just keep working on their port indefinitely with no regard to what Google is doing with future iterations of Android. And if a new feature pops up that they like, nothing would stop them from cherry-picking it and putting it in to their fork.
You mean nothing except the feature being a Google service or not open sourced (cf Honeycomb).
Kindle DX has a massive screen, Kindle Keyboard has a keyboard, Kindle Touch has a touch screen, Kindle has buttons, Kindle Fire is a tablet.
And then there's the 3G and Wi-Fi splits, but that's also an obvious feature.
* Kindle (touch)
* Kindle that doesn't need wifi (touch 3G)
* Old Kindle that they need to sell off (w/ keyboard)
* Kindle w/ video + web + games (Fire)
It looks like there are quite a few Kindles, and Amazon isn't afraid to differentiate.
Also remember they would be free of Google and Android, and all of the legal battles happening in that space right now. webOS is so far removed from any of the other platforms out there that there is no danger of being sued by someone for copying them.
Also, if you think WebOS is somehow immune to the plague of lawsuits in this industry you're crazy. Nobody is safe from lawsuits. It's just a cost of doing business these days; you pay your success tax and you move on.
Kindle users may very well prove to be a different demographic than tablet users. If they sell 10 million Fires then they will probably be out-selling iPads in that space, can't see that happening. A lot of Kindle users will stick to Kindle because they just want to read books on an e-ink screen.
> Also, if you think WebOS is somehow immune to the plague of lawsuits in this industry you're crazy. Nobody is safe from lawsuits.
Do you have any idea how many mobile patents Palm has?
...along with at least 1 million webOS users? Who are currently buying software from the webOS store, and are likely to buy future webOS hardware from Amazon (or whoever else how makes it)? Really?
Tell that to this guy: http://twitter.com/#!/PalmFlashCards/status/1147168660978442...
I could not, however, see Amazon hedging on Android by holding webOS in state. That would be a rather insane move given the audience the Kindle Fire will attract from Day One.
In fact, I distinctly remember asking the Palm webOS developers when I discovered in their Java-based media services a particular call that instantly parsed SHOUTcast/Icecast-style playlists of many various formats with ease whether it'd become a public API call. It never did.
If HP races to finally reconcile the two sides as a promised a half-year ago a la Android's ICS, then there might be no obstacles to the Java argument. Until then, however...
All that's left are the webOS-centric patents for the most part, and patent applications such as the card metaphor (which would put QNX in a REALLY bad position if granted) are still pending.
http://technologizer.com/2009/01/23/palm-responds-to-apple-i...
Of course this never happened, because to quote Palm at the time:
"Palm has a long history of innovation that is reflected in our products and robust patent portfolio, and we have long been recognized for our fundamental patents in the mobile space. If faced with legal action, we are confident that we have the tools necessary to defend ourselves."
Note that this statement was written well after the spin-off of Palmsource.
With all the bogus patents out there, it is hard to imagine any complex mobile system that doesn't infringe on _something_ out there.
Even so it's a hard deal for me to get my head around. Amazon is not an acquisition-happy company. There's usually very clear alignment and they've never done a big talent acquisition, so I suspect there'd have to be something very specific that they're after.
On the simple end, they could port Kindle, MP3, Prime Video, etc., and make them available as part of of a firmware update.
If they really want to, though, they could even make an "official" upgrade to Amazon's fork of Android, with the Appstore and UI that the Fire has (more precisely, the one from the 10" Fire variant they're working on).
So that gets them: (1) patents they need, (2) a bunch of in-house expertise in the full tablet hardware and software stack, (3) a bunch of customers to sell their content to and convert to their ecosystem.
That pretty much puts every asset Palm has to use except for WebOS itself, and as someone posted earlier, even that might be useful as a hedge against Google's handling of Android.
There's no reason a company cannot have two app stores.
Indeed, even Apple does.
If Amazon ultimately uses WebOS to get into the phone market, I could see them easily managing two different app stores easily. If they create one set of Android tablets and one set of WebOS tablets, it's going to be a bit trickier. All of this is really going to depend on how apps fair on the new Amazon tablet.
And misses the relevance of the app store for Amazon, who sell slates to sell book content.
It also ignores the most common approach to app stores.
The OS determines which app store one can visit.
I.e. even my mom can't download Macapps to her iPhone.
[Edit]Your argument also assumes that Amazon will not differentiate the tablets which seems contrary to their differentiation between the Fire and Kindle (e.g. touch screen operation means different sorts of apps).
I'm not sure I understand this. There is no issues with selling book content on any flavor of Amazon device, it's all the stuff. The issue is with Apps and having two or three tablet devices, all running different OS's with different app stores.
> The OS determines which app store one can visit.
Sort of. I have both an iPad and iPhone, but rarely use the AppStore built-in to either one, unless I know exactly what app I want to buy. I prefer discovery using iTunes. I'm sure some % of Amazon uses do something similar with the www.amazon.com app store front, though not having an Android device, I'm not entirely familiar with the options available and how they compare to Apple's AppStore.
> I.e. even my mom can't download Macapps to her iPhone.
She can't download them, but she could mistakenly purchase them. I think the separation is clear enough to avoid mistakes between Apple devices. I'm simply arguing that the potential is worse for Amazon should they roll out both Android and WebOS tablets. Again, the issue would only stem from an off-device app store, since an on-device store can obviously filter.
> Your argument also assumes that Amazon will not differentiate the tablets which seems contrary to their differentiation between the Fire and Kindle
The argument is not whether or not they will differentiate, but rather to what extent they will be differentiated. The differences between Fire and Kindle are obvious. The difference between Fire and (WebOS Tablet) is more of the question.
I don't think they'll have 2 OSes but I don't think this is true. Buying an app requires an Amazon account, so they could obviously stop people from buying apps that are not compatible with their device.
Probably if they buy WebOS it will be for the Kindle Fire 2 which won't be for another year, at which point they can transition (slowly) away from Android. Buying WebOS on the cheap might be too good of an idea to pass up on.
Google can pull the rug out from under them at any time for any reason. You can't run a multi-billion dollar business on good faith alone. It would be nice to believe that Google wouldn't do that type of thing, and maybe they won't, but it's a huge risk to take. Amazon is playing to win this. They have to believe at some point the Fire and other Amazon tablets will be so successful that they can easily attract developers. (and we can't rule out some form of Android compatibility being added to WebOS -- something Palm may have already been working on and could be quite mature. If RIM managed it I'm pretty sure Palm can too)
Amazon already has the Android store, all the Android integration done for the Fire and the Java/Android expertise in house... where does WebOS fit in?
b) Amazon Silk is a game changer that probably has Google fuming. Buying Palm is probably a hedge bet in case Google clamps down. The end-user platform(devise, OS, browser) war between Google, Apple, and MS is to control the user data. Amazon wants to make sure it has an unrestricted piece of that data.
Google already has too many mobile OS's and Amazon's expertise is elsewhere.
I feel like I'm missing some core component of Palm here that makes it valuable to even still be talked about. Had they had some amazing version of Android with a custom browser and all that, I'd understand this a lot more quickly.
If Google were to clamp down on Android, why wouldn't Amazon just continue developing their Android fork? Seems like it would be a lot more effort to get webOS to where they need it to be.
Opera Mini has been doing the remote-rendering thing for years and years now. It is the most widely used mobile browser, with 113+ million users and 2+ billion daily pageviews.
> [Opera] is the most widely used mobile browser
Use appears to be mostly from Asia. In Europe, iPhone leads by a wide margin, followed by Android; in North America, Android leads, followed by iPhone [2]. Opera makes at best a fourth place showing on these continents.To your point about "fuming", I think you're right. There's no evidence that Google's analytics or search (advertising) products will be negatively impacted by silk.
1: http://gs.statcounter.com/#mobile_browser-eu-monthly-201009-... 2: http://gs.statcounter.com/#mobile_browser-na-monthly-201009-...
We know that Amazon had to outsource the design and build of the Fire to an outsider, no doubt it would be preferable to bring that in-house to a team of world class industrial designers.
Maybe Amazon just want some patents, some good engineers and a backup OS for leverage against Google?
If we're referring to HP as a collective of things (i.e. individuals, such as the board) then it should be have ( - they have ....)
IMO I'd say it could be either really, though I would probably favour the singular.
I'm British if it helps...
If HP were being clever, I could see them leaking their discussions with Amazon right now (when Amazon is on everyone's mind) as a way to motivate the "real" buyer (presumably Google or Apple). But I don't give HP credit for being that clever.
Interesting note about Ruby's being on the Amazon board too, didn't notice that earlier.
But my question was whether or not they _did_ work together, one of the tech sites wrote that they did. I will try and find the reference.
I'm sure Amazon would know how to handle it better than HP.
I think the Palm brand is "too far gone" in the public mindset to be worth bringing back. The Amazon brand is a far stronger, far more popular brand and its important that they don't dilute that right as they launch the Fire.
Acquiring Palm, to me, would be so they can acquire patents, some developers and designers, and some tech. WebOS, nice as it is, has missed the train. Amazon would be insane to backflip now (even I wish they'd used WebOS to begin with).