The prediction at the Babbage blog at the Economist is that HP has made a great move in getting out of the tablet business. They can now focus on core competencies, rather than waste resources trying to wrest market share from a dominant Apple.
Apple’s share of the tablet market is over 61% and growing, while all the Android tablets together make up barely 30% and are being squeezed … Windows tablets account for 4.6% and Research in Motion’s 3.3%.
Fighting Apple would always be a losing proposition since no competitor could hope to match the iPad in the quality of the consumer experience. The Samsung Galaxy Tab is not bad, but even that feels derivative. HP’s business plan was even more flawed in that they originally matched the iPad price-wise.
Since the news caused HP shares to fall precipitously, naturally this presents a great buy opportunity. HP is getting rid of a product line that is dragging it down. It will emerge leaner.
The article also has a discussion of the relative merits of the Amazon Kindle and Barnes & Noble Nook. I did not know that the Nook has a 20% market share in the e-reader market.