HP-Palm faces uphill battle in Europe

Lack of brand awareness will be a tough challenge, according to an analyst

A merged Hewlett-Packard and Palm will have a long way to go before it can challenge the likes of Nokia, Apple, Research In Motion (RIM) and HTC in the European market, according to analysts.

Lack of brand awareness for Palm in the European market will be one of the biggest challenges, according to Roberta Cozza, principal analyst with Gartner Research. That's a result of Palm's decision to spend most of its limited resources in the U.S., and the vendor is now not known outside of tech circles, according to Ben Wood, analyst at CCS Insight.

However, HP's acquisition can only be a good thing, but it is starting from a very low base when it comes to Europe, Wood said.

Palm's smartphone market share in Western Europe was only 0.2 percent during the last three months of 2009, compared to 4.3 percent in the U.S, according to Gartner. In Western Europe, Nokia, Apple and RIM were the three largest smartphone vendors during the fourth quarter, according to Gartner.

Support from operators will be an important part of a European resurgence. In Europe, Telefonica-O2 has been its biggest supporters -- the operator sold the original Palm Pre and will sell the Pre Plus and Pixi Plus in several countries -- and it welcomes the proposed deal. A stronger Palm will be good for the smartphone market, and give WebOS a boost in terms of investment and scale, according to a statement sent via e-mail.

That sentiment is echoed by Palm in Europe. If the deal goes through, it will bring the resources to allow Palm to scale faster, according to a spokeswoman.

However, to be able to compete in the cutthroat smartphone sector, an application and content ecosystem to go with the products has become critical, according to Cozza, who isn't convinced that Palm, even with the help of HP, can build an ecosystem to rival its larger smartphone competitors.

HP-Palm will have a better chance at competing in the burgeoning slate PC market, which isn't as fully formed as the smartphone segment, according to Cozza.

Still, HP's decision to do something different and not just go with Android, like its arch nemesis Dell, is a "ballsy" move, according to Wood, and if it wanted to spend big on building a smartphone brand HP has the war chest to do it, he said.

HP Europe didn't return calls for a comment.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags smartphonesHPPalm

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Essentials

Mobile

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?