HP’s comeback plans in the smartphone segment are nothing new with Meg Whitman, company’s CEO, acknowledging company’s intention of re-entering the smartphone; however, it is generally believed that the segment that HP is targeting – emerging markets – might not work out in favour of one of world’s largest PC makers.
Recent reports indicate that HP will try to imitate its low-cost tablet strategy and launch a sub-$200 Android smartphone aimed at emerging markets including India, and China. The smartphone is expected to be a 5.7- to 6.3-inch phablet more or less like the Galaxy Note 3, but without the advanced features.
Pricing may be an appealing factor, but not in emerging markets as there are a ton of other local vendors in these two markets that give established smartphone vendors like Samsung a run for their money. Lenovo, Acer, and Asustek Computer in China and Micromax, Spice and Videocon in India are among the few local vendors, which HP would need to compete for a share.
If HP doles out a low-cost budget-friendly phone, it will have to compromise on design and build aspects, which wouldn’t make it any different from even the white-box vendors never mind the established local vendors. Further, launching a budget-friendly phone without a flagship device to lead the way wouldn’t appeal to buyers in these markets as they, even though are budget-conscious, are brand sensitive as well and a high-cost flagship device does make an impression.
HP might adopt the same tactic of optimising its sales channel to push out as many smartphones as possible just like it did with its tablets, but the company might not just be able to differentiate itself from other vendors for the lack of appealing specifications.
