H-P (HPQ) to Bundle Kinect-Like Device with PCs; Will Be Boon for Microsoft (MSFT)

April 16, 2013 2:44 PM EDT
Is Hewlett-Packard (NYSE: HPQ) taking a roundabout way to get people more used to using tablet PCs?

H-P will be bundling a device from Leap Motion that is best described as a peer to Microsoft's (Nasdaq: MSFT) Kinect device, which senses movements well enough to translate those to onscreen action. The small, pack of gum-sized device does the same with just hands and the occasional writing device.

Some speculate that this might be an attempt for H-P to lure consumers back into the PC segment, but why would the company do that? With Microsoft, Apple, and others making tablet PCs that rival some desktops and most laptops, H-P would be foolish to want to sell more traditional PCs.

The Leap Motion controller could then be considered a training device. Maybe H-P wants to sell more touchscreen or tablet PCs, the small controller would let users basically try-out using gestures without having to be forced into doing so or having an awkward setup, ala - a tablet with keyboard attached.

Worst case is that the device will help out Microsoft in its effort for more people to use Windows 8. The operating system has largely been criticized due to concentration on touch interaction versus the usually keyboard-and-mouse setup. This little device would aid people in making the transition.

Whether its the best thing for H-P in the long-run is debatable. In the near-term, the Leap Motion could boost sales and help H-P with customer retention.

Shares are up 1.6 percent Tuesday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Insiders' Blog