HP CEO Mark Hurd today clarified that the Company did not buy Palm to produce any smartphones. It has bought it for IP.

Hurd unfolded the reasons for its Palm purchase at a Merrill Lynch technology symposium, today. He reiterated that it is not at all related to the production of smartphones.

"We didn't buy Palm to be in the smartphone business. And I tell people that, but it doesn't seem to resonate well. We bought it for the IP", he said.

He added that WebOS is a ground-up piece in software which is usually built as a web operating environment. The Company has millions of web-connected devices.

The rumor must have disappointed the Palm Pre owners and fans, he said. He refused to comment on the HP's plans of continuing with the manufacturing of smartphones.

Both Palm's WebOS and ChromeOS find their basis on Linux, yet they have modified crucially to perform efficiently in small devices. Apple's iPhone OS is based on OSX.

Analysts appreciate the performance of Hurd in HP, saying that he has been running the Company efficiently since his joining.

HP sells numerous devices directly to consumers.