"We've seen a number of netbooks returned as a result of the Linux OS. Consumers are used to the Microsoft Windows world," Daoud said. Linux adoption remains weak on client computers, especially in mature markets like the U.S. and Western Europe, he noted.

Still, there may be an upside for Android if HP were to make it work in netbooks. HP's heft as the world's largest PC maker would widen Android's use, Daoud said. It could see success in emerging markets like India and China, where Linux adoption is growing.

But HP would need to deliver a consumer-friendly product that makes Linux easier to use in PCs, Daoud said.