According to a recent report from DigiTimes, Samsung could be interested in picking up HP’s (NYSE:HPQ) webOS business to help muster up its software platform as it looks to beef up its software platform against Apple (NASDAQ:AAPL). ^[1] A few days back, HP announced its plans to spin off its PC business and scrap the webOS software that powered devices like the Palm Pre and TouchPad. In our earlier note titled HP’s Decision to Scrap webOS Signifies iPad’s Dominance, we discussed how HP was finding it difficult to cope up with the iPad challenge, and scrapping of webOS is another reminder that many tablet makers are struggling to match the popularity of the iPad.

The iPad constitutes about 12% of our $510 price estimate for Apple stock, which is about 30% above market price. We don’t cover Samsung currently but follow it given its role in global technology, and you can see our HP estimates here.

Samsung Being a Mobile Might

Samsung is seen more of a hardware player and its more popular Galaxy series of smartphones are based on Android operating system. Its proprietary smartphone operating system Bada failed to take off and was assumed to be headed for the scrapyard until the company announced that it would keep it release an updated version following Google’s (NASDAQ:GOOG) acquisition of Motorola Mobility (NYSE:MMI) for $12.5 billion, and its bitter patent battle with Apple continues (see Samsung Moves to Shore Up Bada After Google-Motorola Deal).

Growing Important of Software for Hardware Powerhouse

Samsung’s potential move to acquire webOS could be seen as a way to counter Apple’s success in smartphones and tablets. The key to Apple’s success is the seamless integration of its hardware and software for its devices, something which other mobile phone players have failed to achieve. If Samsung picked up webOS and optimized its mobile OS, it would be less dependent on Google going forward and could better challenge in Apple.

Apple and Samsung are the top two leading players in the smartphone and tablet market, and Apple currently leads Samsung in both these markets. It’s widely expected that Samsung will surpass Apple in unit sales this quarter though Apple’s average selling price is still much higher.

Steve Jobs departure from Apple and the Korean firms confidence in its smartphone and tablet business could signal some more aggressive actions in the near future as Samsung looks to fend off recent Apple and lawsuits and make its mark in the mobile computing market. See Samsung Eyes Opportunity as Steve Jobs Resigns).

See our complete analysis for Apple stock here

Notes: