HP CEO Meg Whitman states that in the coming weeks they will decide whether or not to keep webOS, and that if they do it will be in a big way. But to give you a little excerpt from yesterday’s investor call, below you can see how much money HP lost on the webOS experiment — $3.3 billion when it failed to absorb its fall, and $1.2 billion to buy it in the first place. Ouch.
First, we took a total charge to operating income of $788 million. This was associated with the wind down of our webOS device business. This charge included a net revenue reduction of $142 million related to the sales incentive program, $548 million in costs of sales due to supplier-related obligations and inventory reserves, and $98 million in operating expenses and restructuring charges. Second, as a result of our decision to wind down webOS devices, we have taken an impairment expense of $885 million against the carrying value of goodwill and purchase intangible assets related to the acquisition of Palm.