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  1. #21  
    Quote Originally Posted by clevin View Post
    its industry standard rip off (android tab is slightly better since they have microsd slots). 32GB has better profit margin, thats also why HP likely will only ship 32GB to retail stores.

    And they made sure there is no SD slot for buyers.
    Why is making a profit a "rip off".

    You "charge" your employer a certain amount of money to work for him. That hourly rate is much more than your "cost" to work for him. Is that a "rip off"?

    Here's the bottom line reason it's $100 more - because HP believes it adds enough value to the device to make it worth $100 additional to the customer. We will see if they're right (I suspect they are).
  2. #22  
    Quote Originally Posted by EvilKell View Post
    Anyway, why would HP get into a price cutting war with Apple? HP is desperate for profits right now. If they can make a profit on selling 32GB instead of 16GB, they'll gladly do it.
    If two powerhouses at about equal footing, there is no need for price differentiation.

    But the reality is Apple is dominating in this market, and android is pushing up hard and fast.

    There is importance for short term profit, but I think long term market growth is more important.
  3. #23  
    It's no secret that the initial iPad (before economies of scale kicked in) had a very thin margin when you considered manufacturing and marketing costs. The price it launched at blew EVERYONE away, not a single analyst saw "$499" coming. Some of the price estimates were $1K before the official announcements.

    The profit was coming in on converting the higher end buyers, thus the "unreasonable" mark up.

    I suspect HP is doing the same thing, even more aggressively by virtue of the fact that 16GB aren't showing up in any of the retail outlets.

    I doubt they can build and market these units yet as inexpensively as Apple, but they can maximize their profits if they can steer more buyers to the higher profit item.
  4. #24  
    Quote Originally Posted by finngirl View Post
    It's no secret that the initial iPad (before economies of scale kicked in) had a very thin margin when you considered manufacturing and marketing costs. The price it launched at blew EVERYONE away, not a single analyst saw "$499" coming. Some of the price estimates were $1K before the official announcements.
    That's because they knew Apple's history with larger devices. The thing is that all Apple did was take the bulk of their components from their iPhone/iTouch and shove them into a bigger case with a bigger battery. The "economies of scale" were already there for most of the components. They also made the first one pretty chunky to avoid the extra design costs of trying to make things smaller and left out some cheap to include features to use in selling their next model. I can't see how "not a single analyst" couldn't see this coming in at that price or close to it unless all they based it on was Apple's Mac line pricing.
    Last edited by Orion Antares; 06/09/2011 at 02:13 PM.
  5. #25  
    Why is everyone complaining about Price? webOS is of the same caliber as iOS (if not better), so why should it be priced at a discount? I guess people don't see the value in webOS and want to get it for cheap, but webOS is not some second rate, discount OS.

    It's a premium OS & it's price should reflect that. The iPad is currently the best tablet on the market, so to price your tablet lower is to admit it's not of the same quality as the iPad. Maybe I'm just overly enthusiastic about webOS, but I already see the TouchPad's launch being successful, and probably will only be rivaled by the iPad. The TouchPad will blow all other tablet sales out the water, and show RIM & Android how's it's done. Count on it!

    By the time aug/sept comes analyst will be stunned by what HP has done with the TouchPad!
  6. #26  
    Quote Originally Posted by Smartfah View Post
    Why is everyone complaining about Price? webOS is of the same caliber as iOS (if not better), so why should it be priced at a discount? I guess people don't see the value in webOS and want to get it for cheap, but webOS is not some second rate, discount OS.

    It's a premium OS & it's price should reflect that. The iPad is currently the best tablet on the market, so to price your tablet lower is to admit it's not of the same quality as the iPad. Maybe I'm just overly enthusiastic about webOS, but I already see the TouchPad's launch being successful, and probably will only be rivaled by the iPad. The TouchPad will blow all other tablet sales out the water, and show RIM & Android how's it's done. Count on it!

    By the time aug/sept comes analyst will be stunned by what HP has done with the TouchPad!
    You remind me of former Palm CEO, when asked about the price, he said "why would we offer lower price if our product is better?"

    Thats fine reasoning from people like webOS fans, its a dead end for average Joe.
  7. #27  
    Quote Originally Posted by clevin View Post
    You remind me of former Palm CEO, when asked about the price, he said "why would we offer lower price if our product is better?"

    Thats fine reasoning from people like webOS fans, its a dead end for average Joe.
    But it's a long road view for the company. It's easier to lower prices than it is to raise them and the lowered prices can be made temporary.
    Last edited by Orion Antares; 06/09/2011 at 02:16 PM.
  8. #28  
    Quote Originally Posted by Orion Antares View Post
    But it's a long road view for the company. It's easier to lower prices than it is to raise them and the lowered prices can be made temporary.
    That's true. Also HP often does price drops and bundles for back to school sales & holiday sales. I remember a holiday bundle they did with a desktop, laptop & netbook for $999. I can see HP doing temporary price drops, or bundles inlcuding a laptop, printer, TouchPad, & webOS phone, or some other combination.
  9.    #29  
    Quote Originally Posted by Smartfah View Post
    Why is everyone complaining about Price? webOS is of the same caliber as iOS (if not better), so why should it be priced at a discount? I guess people don't see the value in webOS and want to get it for cheap, but webOS is not some second rate, discount OS.
    Because the specs of the TouchPad match that of the iPad 1, NOT the iPad 2. Yet the price matches the iPad 2 not the iPad 1.
  10. #30  
    Quote Originally Posted by 6tr6tr View Post
    Because the specs of the TouchPad match that of the iPad 1, NOT the iPad 2. Yet the price matches the iPad 2 not the iPad 1.
    Incorrect http://my.jetscreenshot.com/3530/20110609-bzc3-70kb.jpg
  11. #31  
    Quote Originally Posted by QuadForce View Post
    That picture missed one big difference:

    Vendor: Apple >> HP.

    Com'on, if we can't admit the brand effect of apple, we are just lying to ourselves.
  12. #32  
    Quote Originally Posted by clevin View Post
    What market? tablet market? or apple brand loyalty market? The former? lower the price. EEE pad only has higher quality than touchpad, and at lower price, and with good sales. The latter? there is no chance in hell any none-apple products gonna win.

    another people trying to talk about market 101. I will let the market taught you the lesson of "entering a new market, gaining market with low price" in three months. lol
    You do not necessarily gain in the market by offering the lower prices. There are quite a few lower priced tablets out there and they aren't rolling off the shelf. They also aren't of very high quality. They are trying to sell to people who are newly interested in the tablet market because of Apple but don't have $500 to spend. They price it expecting low sales but a decent profit from the low quality materials. HP is going after the market of people who are willing to pay $500+ for a tablet. The market that expects quality and will pay for it. While Apple is dominant at the moment and will be for a long time, that doesn't mean there isn't market share to take from them. HP would gladly take being the #3 tablet maker in the world. They'd still be making a lot of money. They could discount it $25-50 less but I'm sure they realize that won't make a difference in sales and will hurt profit.
  13. #33  
    Quote Originally Posted by clevin View Post
    That picture missed one big difference:

    Vendor: Apple >> HP.

    Com'on, if we can't admit the brand effect of apple, we are just lying to ourselves.
    that's perception, not truth
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    #34  
    Quote Originally Posted by 6tr6tr View Post
    Because the specs of the TouchPad match that of the iPad 1, NOT the iPad 2. Yet the price matches the iPad 2 not the iPad 1.
    Are you telling me that the TouchPad has a single Cortex A8 core with 256 MB of memory?
  15. #35  
    I'm still waiting for confirmation or for someone to ask someone at HP what the detailed specs of the screen are.
  16. #36  
    Quote Originally Posted by samab View Post
    Are you telling me that the TouchPad has a single Cortex A8 core with 256 MB of memory?
    No one would be saying that. On the other hand - the iPad 1 was pretty snappy without dual cores and a 1gb of RAM... so the comparison is not really relevant. The end user experience is more important than the specs under the hood. If one is more efficient than the other - it won't need the same specs to peform the same.

    Granted some of the reasons for webOS to require more resources are things that drive features that people like when they experience them. The trick is going to be making it clear to those people that don't know this already - and doing so in a way that generates interest.

    Don't lose the lesson of the Apple Mac, the Atari, the WANG, superior products do not make for sales - you have to have more than just a better widget.
  17. #37  
    Quote Originally Posted by Unclevanya View Post
    No one would be saying that. On the other hand - the iPad 1 was pretty snappy without dual cores and a 1gb of RAM... so the comparison is not really relevant. The end user experience is more important than the specs under the hood. If one is more efficient than the other - it won't need the same specs to peform the same.

    Granted some of the reasons for webOS to require more resources are things that drive features that people like when they experience them. The trick is going to be making it clear to those people that don't know this already - and doing so in a way that generates interest.

    Don't lose the lesson of the Apple Mac, the Atari, the WANG, superior products do not make for sales - you have to have more than just a better widget.
    No, the iPad 1 wasn't that snappy with it's 256MB of RAM. If you tried it wasn't hard to show that it should have had more RAM.
  18. #38  
    Quote Originally Posted by Grabber5.0 View Post
    that's perception, not truth
    And majority of buyers will buy Apple based on that perception, and Apple will laugh all the way to the bank.
  19. #39  
    Quote Originally Posted by clevin View Post
    That picture missed one big difference:

    Vendor: Apple >> HP.

    Com'on, if we can't admit the brand effect of apple, we are just lying to ourselves.
    Sorry, brand is not a spec. HP is a highly respected brand name.
  20. #40  
    Quote Originally Posted by clevin View Post
    If two powerhouses at about equal footing, there is no need for price differentiation.

    But the reality is Apple is dominating in this market, and android is pushing up hard and fast.

    There is importance for short term profit, but I think long term market growth is more important.
    HP's investors expect profits, and Apotheker is under the gun to deliver earnings to shareholders. Selling at a loss for market share isn't an option for HP right now. The damage to the company from a drop in share price due to poor earnings would more than offset any gain in market share from a price point.

    Again, HP views itself as a powerhouse in the technology industry as a whole. Their brand recognition is very strong overall, but certainly it's weak in the mobile arena. If HP really does have some special secrets to reveal at launch (including video out), it can and will compete well against the iPad2, provided the marketing is decent. It sounds like HP is really pushing it's marketing campaign so we'll see.

    Apple's iPad was adopted by Apple fanatics as will be the case with any Apple device right now. HP is NOT going to steal business from the hard core Apple fans so there is no reason to kill themselves by trying. The undecided buyers are where it's at.
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