In order to gain traction in the mobile business,
) recently announced the launch of two new Voice Tablets, more
commonly known as Phablets. The new Android handset will be based
) user-friendly Android 4.2 Jelly Bean platform.
The device will enhance user experience and provide high-quality
visuals. The successful deployment of the Voice Tablets will not
only curb its over dependence on the PC market but will also
boost revenue growth for the company, going forward.
The newly-launched 6-inch diagonal HP Slate VoiceTab and the
7-inch diagonal HP Slate7VoiceTab feature a 2 MP front-end camera
and a 5 MP rear-facing camera, supporting a resolution of
1280×720 and 1280 x 800 pixels, respectively. Both come with 16
GB in-built memory, which can be expanded up to 32 GB. Moreover,
the devices are powered by
) industry leading Tegra 3 quad-core processor and 3G dual SIM
capabilities for enhanced network speed.
The new handsets Slate6 and Slate7 have been priced at $200 and
$149.99, respectively and will be launched first in the Indian
market. The handsets will hit Indian stores in February. We
believe that the reasonable pricing of Slate 6 and Slate 7 will
put the company in a better position versus its competitors
including Samsung, whose phablet, Galaxy Grand 2, is priced at
According to research firm IDC, phablets are more popular than
tablets in emerging markets. The research firm stated that the
phablet cannibalization trend led them to lower their forecast
for 2013 from 227.4 million units to 221.3 million units. It also
lowered its 2017 tablet shipment forecast to 386.3 million units
from the prior expectation of 407 million units.
Hence, we believe that the deployment of these products will
boost H-P's mobile solutions portfolio and act as a tailwind for
the company's near-term financial performance.
However, increasing competition from companies like
International Business Machines Corp.
) and Oracle Corp. coupled with continuing macroeconomic
challenges and tepid IT spending will pose challenges going
Currently, H-P has a Zacks Rank #3 (Hold).
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