On a conference call this afternoon to discuss HP’s deal to acquire Palm, HP investor relations VP Jim Burns said in response to a question that the company plans to increase R&D spending on the Palm platform above the $190 million a year that one analyst on the call said he has been modeling.
“We’re going to be increase that,” he said. “We’re going to be increasing the sales and marketing also. So we are going to be taking this platform, which today exists in smartphone and taking it much broader than that….we are definitely going to be investing heavily in this business in the next year.”
A few other items from the call:
- Todd Bradley, executive VP of HP’s personal systems group, noted that the smart phone market is over $100 billion in size and growing over 20% a year; he also says there are “further opportunities beyond smart phones into additional connected mobile form factors.”
- Bradley said HP will “continue to be a strategic partner for Microsoft (MSFT).”
- Burns said the deal will likely result in “mild dilution” in FY 2011, with accretion beyond 2011.
- Burns noted that the company has put into place “a significant retention program” for Palm execs.
