HP decided to shut down WebOS, which powers their mobile phones as well as the new TouchPad tablet. Not really a big surprise, maybe the customers who own WebOS products were a bit shocked to hear but not me, I've seen this coming before they've even released TouchPad.
Then, to add more salt to the wound, HP will miss it's financial estimates for FY11, "HP estimates full-year FY11 revenue will be approximately $127.2 billion to $127.6 billion, down from its previous estimate of $129 billion to $130 billion."
It's really not a surprise that HP slowly losing business. They are one of the biggest technology companies in the world, but I think the C-suite is taking their business size for granted. Just because you might have the biggest market share right now does not mean you will have it in the future. After all it's business; companies compete to win customers over.
Once you start taking you market share for granted your profits will begin to dwindle down, you will begin losing customers to your competitors. The simple answer is lack of innovation.
When you have two giants, iOS and Android, dominating the mobile market of operating systems, you can't just come up with your own, copycat, version of mobile operating system and think that it will cut it. Absolutely not!
WebOS did not have any competitive advantages over iOS or Android, and such an early termination clearly shows that. Microsoft's Kin phones is yet another example that HP should've looked at and realized WebOS is just like Kin - yet another ordinary product.
As I said before, HP needs visionary leadership, not another manager. It has such an amazing potential and resources to beat their competitors, yet (like our brains) they are barely using any of it.
On the other hand, HP should hire artists not engineers or product managers. The difference? Engineers and product managers are good at following rules and guidelines; artists are good at following ideas. Rules will never promote change, they are designed to keep you on a straight path, according to specifications. Ideas are designed to... Well, anything really.
Why is it so hard for majority of businesses to innovate? Others do it, why can't you? Don't just create a product or offer a service, figure out your brand positioning and competitive advantage. Figure out how you can overcome your competitors' competitive advantages.
What do you think? What's HP's problem?