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  1.    #1  
    I've been seeing a lot of posts around here arguing that the major price cuts to the TouchPads will really somehow benefit HP, or the webOS, or developers, or something. This simply isn't true. Here's why:

    Let's assume that by selling a 16GB TouchPad for $400, HP is breaking even, so its not making a profit but not losing money. (It is losing money, but let's be generous to HP and assume its not for this example.) Cutting the price to $100 obviously means that HP loses $300 with each tablet. So how can it make this money back? Well with app sales, of course! But how much would a tablet owner need to spend for HP to recuperate the loss? Well assuming that HP takes a 30% cut from every app sale, and perhaps 20% of that goes to maintaining the app store, they can use 10% from every app sale to recuperate. Well they need $300. And $300 is 10% of what number? Three thousand dollars. That's how much the average HP TouchPad owner would need to spend at HP's app store for HP to break even again.

    Obviously, my math here is pretty fuzzy. But I'm sure you get the gist. HP is getting rid of their last tablets. They're not going to make more tablets at the new low prices. And unless shareholder value is soo yesterday to HP, they won't plan on it either.
    sinsin07 and howi like this.
  2. micahdg's Avatar
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    #2  
    I think everyone knows this already... they are just posting desires and dreams. No harm in that.

    There's no myth here. Move along.
    Titan078, cobrakon and VCI_Cell like this.
  3. #3  
    Quote Originally Posted by printrenori View Post
    I've been seeing a lot of posts around here arguing that the major price cuts to the TouchPads will really somehow benefit HP, or the webOS, or developers, or something. This simply isn't true. Here's why:

    Let's assume that by selling a 16GB TouchPad for $400, HP is breaking even, so its not making a profit but not losing money. (It is losing money, but let's be generous to HP and assume its not for this example.) Cutting the price to $100 obviously means that HP loses $300 with each tablet. So how can it make this money back? Well with app sales, of course! But how much would a tablet owner need to spend for HP to recuperate the loss? Well assuming that HP takes a 30% cut from every app sale, and perhaps 20% of that goes to maintaining the app store, they can use 10% from every app sale to recuperate. Well they need $300. And $300 is 10% of what number? Three thousand dollars. That's how much the average HP TouchPad owner would need to spend at HP's app store for HP to break even again.

    Obviously, my math here is pretty fuzzy. But I'm sure you get the gist. HP is getting rid of their last tablets. They're not going to make more tablets at the new low prices. And unless shareholder value is soo yesterday to HP, they won't plan on it either.
    Here's the only way I see it working in HP's favor:

    HP takes a hit on tablet sales--far, far into the millions--and yet manages to boost WebOS's user base. A dramatic increase in users would make the possibility of licensing/selling WebOS much more realistic, and much more profitable.

    but that is a very long shot
  4. #4  
    I think the only way the firesale does probably benefit developers, in that apps they've already made now have a much larger market to sell to (they also have more of an incentive to develop apps for similar reasons, and especially since the app store is so tiny in general). WebOS also has definitely gained a lot in public recognition, which might help boost interest in buying/licensing it from HP? I agree it's really unlikely HP comes out of this better than it went in, but I think it could help WebOS and probably does help app developers.
  5.    #5  
    Quote Originally Posted by qwertyasdfasdf View Post
    I think the only way the firesale does probably benefit developers, in that apps they've already made now have a much larger market to sell to (they also have more of an incentive to develop apps for similar reasons, and especially since the app store is so tiny in general). WebOS also has definitely gained a lot in public recognition, which might help boost interest in buying/licensing it from HP? I agree it's really unlikely HP comes out of this better than it went in, but I think it could help WebOS and probably does help app developers.
    I can't see it boosting interest for the webOS for other companies. After all, the last guys who picked up the webOS saw their stock price drop 20% in one day thanks to it.
    howi likes this.
  6. #6  
    did you forget the math about licensing?
  7. #7  
    Quote Originally Posted by printrenori View Post
    I can't see it boosting interest for the webOS for other companies. After all, the last guys who picked up the webOS saw their stock price drop 20% in one day thanks to it.
    NO stock price drooped because they mismanaged webOS, lowered expectations, and said they were selling their PC division with out a suitor.
  8. #8  
    Quote Originally Posted by DVanTongeren View Post
    Here's the only way I see it working in HP's favor:

    HP takes a hit on tablet sales--far, far into the millions--and yet manages to boost WebOS's user base. A dramatic increase in users would make the possibility of licensing/selling WebOS much more realistic, and much more profitable.

    but that is a very long shot
    impossible the second their insane CEO stood proud and told the world they just cfba carrying on and their dropping it all.
  9. #9  
    Im sorry to the OP but your logic is very simple minded and, based off of a LOT of speculation.

    First of all, everyone knows HP isnt making anymore hardware. Please read the news, they are selling off their entire consumer hardware division. Hence, no more PC's tablets or ANYTHING that is not enterprise related. That was the whole point of HP's announcement on friday.

    For the time being HP is going to continue WebOS to go on as planned, but just the software.

    While this does put a kink in WebOS for sure as they have just lost any hardware partners, people did not sell their stock due to WebOS, that is just completely false.

    The selling of stock has to do with whether a shareholder and investor sees that a company is going to expand or otherwise gain significant revenue over the next short term while. Most stockholders are interest in short term gains.

    When a company is going under huge transformations, there is often mass losses in profits and revenue streams as they miss a product cycle and opportunities to develop a product and service.

    In the long run HP will probably rebound from this current time, but the falling of stock had nothing, if very little to do with WebOS.

    Im not saying WebOS isnt doomed for other reasons, but most of the reasons WebOS is doomed is because of illogical statements like your own or the short-sightedness of consumers and developers that a future doesnt exist after 6 months where large scale changes can happen in the next 5 years.
  10. #10  
    Quote Originally Posted by printrenori View Post
    I can't see it boosting interest for the webOS for other companies. After all, the last guys who picked up the webOS saw their stock price drop 20% in one day thanks to it.
    WebOS probably didn't play a large part in drop of stock pricing, not as much as decision to sell the PC division which is number 1, and also to spend 10 BILLION on Autonomy.

    HP is trying to go up against the likes of Oracle...enterprise solutions.

    Drastic, sudden changes and investors DID NOT like them.
    Psychonaut, howi and batcountry like this.
  11. nhavar's Avatar
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    #11  
    Quote Originally Posted by printrenori View Post
    I can't see it boosting interest for the webOS for other companies. After all, the last guys who picked up the webOS saw their stock price drop 20% in one day thanks to it.
    the last guys who DROPPED webOS saw their stock price drop 20% in one day thanks to it.

    The reality is that webOS had little to do with the stock price drop. The reality is that consumers and shareholders alike have lost confidence in a company that seems to be all over the place. Lost confidence in a company that's making crazy expensive acquisitions (i.e. buying stock at an 83% premium) and seemingly unable to produce anything from those acquisitions and can't seem to stick to a plan for more than a few short months. They don't have confidence in a company that can't bring product to market or a company that's schizophrenic; "Oh we're the number one PC company in the world" "We're going to be number one plus in tablets" "No we're a software company" "No we're a Cloud/services company" What's next.

    I used to think that they had a plan. But this latest misstep exposes a company that lacks a cohesive vision, maturity, or long range planning.
    batcountry likes this.
  12.    #12  
    Quote Originally Posted by Titan078 View Post
    NO stock price drooped because they mismanaged webOS, lowered expectations, and said they were selling their PC division with out a suitor.
    Right, they mismanaged the webOS, as in they couldn't have managed to make it become profitable. And if the tenth largest company in the world couldn't even come somewhat close to breaking even with it, who's going to want to take the risk and try it again?
  13. #13  
    I agree with you.
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  14. #14  
    As some of the others have put it, selling off all remaining inventory boosts market share like crazy. One of two things could happen... one of them being improbable. HP retracts their decision and continues on, now with a larger market share as well as an increased mindshare. Two: Larger user-base makes it an attractive sell-off to a suitor.
    Any way you currently look at it, a recent poll showed the Touchpad as the number two tablet behind iOS, Android doesn't count because their fragmentation splits up their Tab sales, and again, after the "fire sale" they'll definitely be number 2 in marketshare. I don't doubt that they'll sell completely out of the tablet... it's cheaper than most e-readers and will function as one.

    I for one am very interested to see whats going to happen in the coming weeks.
  15. #15  
    Quote Originally Posted by wilsonpossible View Post
    As some of the others have put it, selling off all remaining inventory boosts market share like crazy. One of two things could happen... one of them being improbable. HP retracts their decision and continues on, now with a larger market share as well as an increased mindshare. Two: Larger user-base makes it an attractive sell-off to a suitor.
    Any way you currently look at it, a recent poll showed the Touchpad as the number two tablet behind iOS, Android doesn't count because their fragmentation splits up their Tab sales, and again, after the "fire sale" they'll definitely be number 2 in marketshare. I don't doubt that they'll sell completely out of the tablet... it's cheaper than most e-readers and will function as one.

    I for one am very interested to see whats going to happen in the coming weeks.
    That's right, just sweep all the Android Tablets shipment/sales away with swipe of your hand. The fact that in the 2nd quarter iPad went from 94 percent market share to 61.3, and Android increased market share to 30.1.

    Android Tablet Sales Rise, But iPad Still Dominates

    Android Tablets Gain on Apple IPad in Fourth Quarter

    How exactly does fragmentation negate the fact that there are more Android tablets then webos tablets?

    Touchpad is not number 2. Fantasy and fact often don't agree.
    Last edited by sinsin07; 08/21/2011 at 02:17 AM.
  16. #16  
    Quote Originally Posted by sinsin07 View Post
    That's right, just sweep all the Android Tablets shipment/sales away with swipe of your hand. The fact that in the 2nd quarter iPad went from 94 percent market share to 61.3, and Android increased market share to 30.1.

    Android Tablet Sales Rise, But iPad Still Dominates

    Android Tablets Gain on Apple IPad in Fourth Quarter
    NO. Media outlets that are harping about this 30% for Android are talking about share of SHIPMENTS to resellers and say nothing about sales to end users. By Google's own figures, there are only about 1.4M active Android 3.x devices in use.

    If the Touchpad had been an Android device, you'd have seen people claiming HP's success at selling 275,000 devices to Best Buy. LOL
  17. #17  
    who cares if HP makes money on the touchpad? That isn't the point. Web's now has a MUCH larger user base, which makes webOS more valuable and much more likely to stick around.
    ariker01 likes this.
  18. #18  
    Quote Originally Posted by jtfolden View Post
    NO. Media outlets that are harping about this 30% for Android are talking about share of SHIPMENTS to resellers and say nothing about sales to end users. By Google's own figures, there are only about 1.4M active Android 3.x devices in use.

    If the Touchpad had been an Android device, you'd have seen people claiming HP's success at selling 275,000 devices to Best Buy. LOL
    I accounted for exactly that with "shipment/sales". Are you alluding that there are 1.4m Touchpads sold?
  19. #19  
    Quote Originally Posted by wilsonpossible View Post
    As some of the others have put it, selling off all remaining inventory boosts market share like crazy. One of two things could happen... one of them being improbable. HP retracts their decision and continues on, now with a larger market share as well as an increased mindshare. Two: Larger user-base makes it an attractive sell-off to a suitor.
    Any way you currently look at it, a recent poll showed the Touchpad as the number two tablet behind iOS, Android doesn't count because their fragmentation splits up their Tab sales, and again, after the "fire sale" they'll definitely be number 2 in marketshare. I don't doubt that they'll sell completely out of the tablet... it's cheaper than most e-readers and will function as one.

    I for one am very interested to see whats going to happen in the coming weeks.
    I'm very interested too. I predict the articles and news from this site will die down, like in a nose dive rapidly plummeting towards the earth with no parachute kind of speed. The Touchpad is not number 2 in marketshare, not even close.

    And larger userbase? The only reason that "userbase" is there is because the thing is $99. Do you just forget the firesale? Any suitor to grabbing WebOS has to make a profit. As in, $499 tablets $199 phones. At that price, people will keep picking iOS devices and Android devices instead.
  20. #20  
    Quote Originally Posted by neller2000 View Post
    And larger userbase? The only reason that "userbase" is there is because the thing is $99. Do you just forget the firesale? Any suitor to grabbing WebOS has to make a profit. As in, $499 tablets $199 phones. At that price, people will keep picking iOS devices and Android devices instead.
    ..but no one is really "picking" Android tablets... and a huge majority of phone buyers don't care what the phone itself is running. The failure here is not WebOS, it is the half-hearted performance of the parent company, first Palm (no money) and then HP (no sense). Someone with flush pockets and a vested interest in the phone/tablet market could most likely eke out a successful product portfolio.
    batcountry likes this.
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