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Uncertainty Over HP's PC Group: Who Stands To Benefit?

When HP last month said it is evaluating alternatives for its Personal Systems Group (PSG) business, including a possible spin off or sale, it created uncertainty among partners and customers but opportunity for competitors.

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The last thing Google needs is more competition in the tablet PC and smart phone device market.

For Google, which is wrestling with Apple for dominance in tablet PC market, HP's decision to stop production of its WebOS-based TouchPad tablet PC and its Pre line of mobile phones removed one of its toughest potential competitors. While the TouchPad had a minuscule impact on the tablet PC market because of its small sales and its quick demise, it was seen as one of only a handful of products that could directly challenge the dominance of the Apple iPad and the Google Android-based tablets.

Google is also benefiting from uncertainty over what HP will do with its WebOS technology. While HP has shelved further development of that mobile operating system, it could pick up development later or sell it to another strong mobile device manufacturer.

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