[martingordon]

What HP needs to do is to get a 3.7" mobile phone and a 7" tablet out on the market.

As part of there development program, HP sent me a Pre 2, which I used for ten days before switching back to my iPhone 4. The OS was great to use and there are plenty of apps out there in the App Catalog, and even more apps and tweaks in the homebrew catalog, but the main thing that took me back to the iPhone was the screen size (3.1" on the Pre 1 and 2, the Veer and Pixi are 2.6"). I just couldn't get enough information on the screen at once, and scrolling and pinching got annoying quickly.

There's a glut of 10" tablets on the market. The iPad dominates the market and the ten or so 10" Android tablets do nothing to help HP's situation there. 7" tablets are completely different when it comes to portability, there isn't as much competition at this screen size, and Apple has stated that they have no intentions to build a 7" tablet (which means that it's coming, but it's not here yet and doesn't have 80-95% market share like the 10" iPad does). A $250-$300 7" tablet has the opportunity to give HP a nice foothold into the market, and once they do, they can go back and fight for 2nd place in the 10" market. Building 7" marketshare and building consumer mindshare to eliminate also-ran status is the only way HP (or anyone else for that matter) will have a fighting chance in the tablet space.