IN THE PIPELINE: H-P Plans To Touch The Tablet Market

Hewlett-Packard Co.'s (HPQ) new tablet computer is called the TouchPad, a name that evokes both how the device is used and what it's used for.

Like all tablet computers, the TouchPad lets users manipulate it by touching its screen. Applications can be opened by tapping on their icons, while messages can be read and deleted with the flick of a finger.

But the TouchPad breaks ground because it is designed to help users communicate, to keep in touch. It can receive phone calls and text messages, functions even Apple Inc.'s (AAPL) market-leading iPad doesn't have.

The TouchPad, which is expected to hit stores in June, debuts as more hardware companies rush out tablet computers in an attempt to capture some of the excitement Apple created with the iPad. Competitors, including Samsung Electronics Co. Ltd. (005930.SE, SSNHY), Motorola Mobility Inc. (MMI) and Dell Inc. (DELL), have rolled out tablets running Google Inc.'s (GOOG) Android system that have met with limited success.

H-P is taking a different tack. The TouchPad runs webOS, a highly regarded mobile operating system developed by smartphone-maker Palm Inc., which H-P acquired last year. The operating system is part of H-P's broader strategy, which sees the tablet as a bridge between its PC business and the hot mobile device market.

Analysts say that making a high-end brand-defining product might also help draw customers and software developers to webOS as it attempts to reboot its offerings.

"They need a halo product for developers because the phones so far aren't doing that well," said Endpoint Technologies Associates analyst Roger Kay. "There's got to be some reason to go to webOS."

The core of TouchPad's design comes from a webOS technology called 'Synergy,' which wirelessly connects the device's contacts, calendars and other personal information with social networks and corporate calendars, displaying them together.

The TouchPad uses Synergy and wireless technology to connect with one of H-P's new Pre or Veer smartphones. This allows TouchPad owners to take phone calls and receive text messages on the device.

When a call comes into the TouchPad, a message pops up on the screen for the user to accept. Once connected, the user can speak into a built-in microphone and listen via the device's speaker. It also works with headphones.

The TouchPad also has a sensor that can be used to automatically share information with a Pre or Veer. For example, the TouchPad will open a webpage that is displayed on a Pre when the two devices are touched. H-P said it plans to expand that sensor's functions over time.

Whether the webOS is enough to differentiate the TouchPad in a market dominated by Apple is an open question. The device's physical design borrows from the iPad; it has a sleek minimalist design and 9.7-inch screen that is the same size as the one on the iPad.

While the webOS functions differently than Apple's iOS operating system, it looks a lot alike. The TouchPad's email and calendar programs are indistinguishable from the iPad's at a casual glance.

Still, H-P'S TouchPad has other distinguishing features. H-P is also offering a specialized wireless dock that can talk to a TouchPad while it's charging and can tell it to display different information depending on where it's stationed. For example, the TouchPad can be told to display appointment information when it is placed in a dock at the office. When it's docked at home, the TouchPad can be told to automatically display weather or sports scores.

The TouchPad also offers the ability to run multiple programs concurrently, something iOS and Android only do in a limited fashion. It will also be able to play animations and videos created using Adobe Systems Inc.'s (ADBE) Flash technology, something Apple has repeatedly said will not run on the iPad.

(Ian Sherr covers computer-hardware and consumer-electronics companies for Dow Jones Newswires. He can be reached at 415-439-6455 or by email at ian.sherr@dowjones.com)

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