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Samsung insists it’s not interested in webOS, fails to convince

by Scott Bicheno on 30 August 2011, 02:01

Tags: Samsung (005935.KS), Hewlett Packard (NYSE:HPQ)

Quick Link: HEXUS.net/qa62i

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The OEM doth protest too much, methinks

We live in cynical times and when a company chooses to publicly deny it's going to do something, that often merely serves to reinforce a feeling to the contrary.

As soon as HP announced it was going to stop throwing good money after bad, and capitulate in the mobile device market, the speculation began about who might buy it. Many companies, with Google springing most prominently to mind, would be interested in the patents, but the hope is that the eventual acquirer will also be interested in investing in the platform.

Apple, Google, RIM and Microsoft already have their own platforms, so speculation has focused on other handset-makers - especially Android ones who may be perturbed by Google's planned acquisition of Motorola. By far the biggest of the companies that make Android phones is Samsung, so it stands to reason that speculation has focused on the Korean giant.

And the speculation hasn't been restricted to webOS. HP also said it was considering flogging its entire PC operation, and once more attention has focused on Samsung as one of the few PC OEMs that could afford an acquisition that would presumably bundle the two properties into a great big bundle of consumer tech goodness.

None of that speculation has been substantiated by even anonymous sources, to the best of our knowledge, but a week ago Samsung still felt compelled to issue a brief statement saying it wasn't interested in buying HP's PC business. It then followed-up with an even more strident rebuttal, reported on by All Things D, from Samsung CEO and Geosung Choi, which went as follows.

"To put to rest any speculation on this issue, I would like to definitively state that Samsung Electronics will not acquire Hewlett-Packard's PC business. HP is the global leader in the PC business with sales of 40 million units last year, while Samsung is an emerging player in the category and sold about 10 million units in 2010. Based on the significant disparity in scale with Samsung's own PC business and the complete lack of synergies, it would be both infeasible and imprudent to even consider such an acquisition."

To be honest that's pretty categorical. If Samsung went and bought HP's PSG that statement would be quite rightly thrown back in Choi's face. But neither statement addressed webOS, which definitely leaves that possibility open. Samsung aspires to be like Apple - too much for the latter's liking - and owning its own platform would be a big step in that direction. So such an acquisition would, on that basis, make sense.

Which is presumably why those masters of thinly-sourced tech rumour-mongering at Digitimes are saying Samsung is ‘reportedly considering buying webOS', without revealing which report they're referring to. They then shift the goalposts - in a four-paragraph story that is credited to three separate writers - and say the rumour originates from ‘notebook players', whatever that means.

Regardless, this story is being re-reported far and wide, not least by the All Things D, as a distinct possibility. To us this is an indication that a lot of people think a Samsung acquisition of webOS - which it could presumably have done a year ago  if it wanted to - is quite likely, but that nobody's got any sources giving them anything concrete. Any apparent corroboration of this hunch, no matter how tenuous, is therefore being jumped on.

 



HEXUS Forums :: 12 Comments

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Doesn't Samsung already have BADA? OTH, if they wanted to buy the WebOS division not showing much initial interest might lead to a lower price.
CAT-THE-FIFTH
Doesn't Samsung already have BADA? OTH, if they wanted to buy the WebOS division not showing much initial interest might lead to a lower price.

Yeah, so maybe webOS would become the premium offering in a two-tier strategy.
Of course, webOS is a rather more interesting proposition now than it was a couple of weeks ago, given the hugely inflated install base following the Touchpad fire sale… ;)

Nothing like a quick game of “pin the OS on the mobile OEM”, is there!

As to BADA, it's already tagged as the low-end platform in a two-tier strategy. The question (for me, at least) is whether webOS will end up being a consumer platofrm, therefore targetting Android / iOS / arguably WP7, or if a new owner would try to up the productivity / business side, pushing it more into competition with RIM. Let's be honest, none of the existing leading mobile OSs are particularly enterprise / productivity friendly, and a cunning OEM could open up a huge market in business mobile with a couple of good headline apps and some nifty enterprise integration…
Hmm, notice that while Samsung have said no to buying HP-PSG, they haven't said they're not interested in the business by another means - like a joint-venture or partnership. I mean, come-on, is anyone seriously saying that Samsung wouldn't like to suddenly get a leadership position in that market? The HP press statement did say that outright sale of PSG was merely one of the options they were looking at.

Getting back to webOS, what about LG - they make phones too and, as far as I remember, although they've got a couple of good Android devices, they don't have something to go against Bada (Bing?). Maybe webOS would be a good purchase - especially at a Touchpad-like “fire sale” price? Failing that, there was an interesting post here http://www.eweekeurope.co.uk/news/samsung-lg-urged-to-dump-android-38064 which says:
The South Korean government has urged Samsung to move away from its current dependency on Google’s Android operating system for its smartphones and tablets, amid a continuing international patent dispute with Apple over Samsung’s tablet devices.
South Korea called on Samsung and LG Electronics to join a government-backed consortium aimed at developing a home-grown mobile OS. The move comes in the wake of Google’s acquisition of Motorola Mobility, making Google a direct competitor to Samsung and LG in mobile hardware.
and it occurs to me that a Korean consortium (LG, Samsung, govt) buying webOS to form the basis of “Kr.OS” (Korea.OS) would be a smart move - most of the donkey work has been done, and all those Pre2/Pre3/Touchpad owners are a pre-made user base.

PS, typo time "Samsung CEO and Geosung Choi" - I'm assuming that Mr Choi is CEO in which case the ‘and’ isn't needed. :mrgreen:
I think Samsung are considering this. Considering that Google have now brought into Motorola and all that hardware, Samsung may feel that they can go it alone with their own high end OS…