When HP CEO Mark Hurd said that HP didn't buy Palm to be in the smartphone business, he apparently didn't mean that the company is ditching that market. According to a statement by HP, they're just expanding from that point:

When we look at the market, we see an array of interconnected devices, including tablets, printers, and of course, smartphones. We believe webOS can become the backbone for many of HP's small form factor devices, and we expect to expand webOS's footprint beyond just the smartphone market, all while leveraging our financial strength, scale, and global reach to grow in smartphones


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