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  • 1 Post By ilovedessert
  1.    #1  
    Hi all,

    FYI. He has a major point, HP hundreds of thousands of them, that means more interest from app companies...more interest means more app, more apps means more sales. Especially since the upgrade is out for webOS 3.0!

    Take care,

    Jay

    5 reasons HP TouchPad discounts donít spell disaster
    By Kevin C. Tofel at GigaOm
    Fri Aug 5, 2011 4:25pm EDT

    5 reasons HP TouchPad discounts don

    The web is buzzing with several HP TouchPad price discounts and other great deals on the webOS tablet in the U.S. Woot.com is offering the 16 GB version for $379 today, while HP has a weekend special of $100 off for both HP TouchPad models, making them $399 and $499. That matches a current Staples promotion, but it gets even better at that retail outlet, with another $100 off coupon from FatWallet, dropping the entry level tablet to just $299.

    Given that the recent software update made the TouchPad much better, Iím likely to bite on this deal. But do all of these discounted prices mean the TouchPad is already a flop? Some are implying that on Twitter today, due mainly to the Woot deal.

    Follow @chartier@chartier
    David Chartier The TouchPad is on Woot.com. That can't be a good sign. :\
    HT @KevinCTofel

    August 5, 2011 7:23 am via Twitterrific for MacReplyRetweetFavorite Follow @BrianzBrain@BrianzBrain
    Brian Dipert The HP TouchPad 9.7Ē 16GB Wi-Fi tablet, introduced just one month ago, today's Woot! of the day, $379.99 brand new. Sad. Wootģ : One Day, One Deal August 5, 2011 8:45 am via Tweetie for MacReplyRetweetFavorite
    Nothing against these folks and many others that tweeted similar doom and gloom thoughts; I respect their opinions, but I disagree for several reasons.

    1. If youíre paying full MSRP for an HP product, youíre doing it wrong. The company constantly discounts nearly all of its products on a rolling basis. This isnít a new strategy, either. HPís standard operating procedure is to run various special deals, instant rebates or small coupon code promotions for as long as I can remember. By doing this across a wide product mix, HP can better combat pricing promotions against competitors. Need an example? I recently bought a $199 wireless printer from HP that supports Appleís AirPrint and Google Cloud Print. The cost? $79 shipped, because I waited for an instant rebate, which just happend to coincide with a special discount. By the way, the printer works great with the TouchPad, too.

    2. Sales will attract developers (which will attract sales). HP knows it has to build up a wide number of compelling applications for its webOS product line. Developers are understandably focused on money so iOS has the bulk of their attention, followed by Android. Those two platforms are firmly entrenched at the top, but itís a land grab for platform no. 3. Microsoft appears to be the front-runner here with Windows Phone 7, ahead of BlackBerry and webOS, so HP needs to jumpstart developer attention. It can afford to give up short term device profits if it brings more apps in the long term, because more compelling apps can help sell more tablets in the future.

    3. You donít spend $1.2 billion and call it quits early. Thatís the amount that HP spent to buy Palm in a transition from the PC world to the mobile space. Aside from iPaq handhelds and a few early smarpthones, HP really hasnít been in the mobile game. It is the no. 1 PC maker in the world, but that market is slowing just as the mobile market is growing. This isnít a $1.2 billion fire sale, folks. Essentially, thatís what Steven DeWitt, SVP & GM, of HPís webOS global business unit Personal Systems Group tweeted this morning: ďIts about building new relations thru webOS. $100 off a HP Touchpad is a great deal. We r in this for the long haul!Ē

    4. The BOM for both tablets is under these reduced prices. A recent iSuppli teardown pegged the materials cost for the 16 GB and 32 GB TouchPad at $296 and $318, respectively. Add in an estimated $10 per device for manufacturing and the production prices are still well under the special deals ó except for that extra $100 coupon, which isnít likely to appear often. There are indeed marketing and other costs that cut into device profits, but HP isnít taking a financial bath on these deals, even if some of the lower price points happen to stick.

    5. HP will still sell tablets at ďfull priceĒ; even today. For all of the tweets sharing the special TouchPad deals, a number of customers will buy the tablets at full price. They simply may not hear about the special. And just like with many HP promotions, if you donít know about them, you might not see them; even on HPís own site. While writing this article, I searched for the HP TouchPad product page on Google and added a 16 GB tablet to my cart. There was a $50 instant rebate, but thatís not the $399 deal. If I didnít know any better, Iíd think I was getting a great discount and never be the wiser that I could save another $50 just by using a different entry point to HPís site.

    We often say the tablet market is different from the PC market, and in many aspect, it is. But HP has become the top PC seller in the world by using these pricing strategies, and thereís no reason it shouldnít do the same thing where it can in the tablet market. Put another way: if you miss this weekendís TouchPad deals, donít worry, because I expect to see more in the future. Then again, Iím not waiting around: $299 is too good a deal for me to pass up!
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
    milominderbinde likes this.
  2. #2  
    Those were my thoughts on HP's pricing strategy. They always start high and have tons of deals and promotions. We are all used to the way that carriers price things. They keep them at a certain price with and without contract then lower them when newer models come out.

    How else does HP sell two PC's per minute or so. I don't think this is a failure and people in the smartphone and tablet world are not used to the way HP does business.

    I would not be surprised if the Pre 3 came out for $400-500 MSRP unlocked and go down to about $200 unlocked with deals, coupons and promotions. Remember that they are going to come out with a device every other month or so. They are going to push and promote every device that comes out.
  3.    #3  
    Quote Originally Posted by markm2179 View Post
    Those were my thoughts on HP's pricing strategy. They always start high and have tons of deals and promotions. We are all used to the way that carriers price things. They keep them at a certain price with and without contract then lower them when newer models come out.

    How else does HP sell two PC's per minute or so. I don't think this is a failure and people in the smartphone and tablet world are not used to the way HP does business.

    I would not be surprised if the Pre 3 came out for $400-500 MSRP unlocked and go down to about $200 unlocked with deals, coupons and promotions. Remember that they are going to come out with a device every other month or so. They are going to push and promote every device that comes out.
    Hi,

    1. I agree with you! I had forgotten until a friend reminded me, that Apple cut prices shortly after the iphone 1 came out b/c they didn't get the greatest of reviews and wanted to flood the market with them. The 1st iphone didn't even cut and paste.....HP spent a major fortune on this and isn't dropping webOS anytime soon.

    2. In hindsight Ruby made a major mistake. I would rather the The TouchPad came out delayed but without the performance problems many of the reviewers mentioned....I would think that is what the delay in the Pre3 is all about!

    3. While I'm discussing hindsight, I'm not surprised about what a number of articles called Ruby's "lateral demotion" after TouchPad reviews started rolling in....I also think at this point he was in over his head.

    Take care,

    Jay
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group

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