Page 4 of 6 FirstFirst 123456 LastLast
Results 61 to 80 of 111
Like Tree31Likes
  1. #61  
    Quote Originally Posted by k4ever View Post
    I started a thread about that and everyone said I was crazy. If the fire sale works continue it for a week or two. Dump 10 million Touchpads on the world. It cost them less money than the advertisement and training.
    It was estimated that HP lost nearly half a billion in the firesale. That's with what 1 million units tops? You think any company is prepared to drop a couple of billion dollars to win over 10 million budget hunters on a future device that would then be destined to have razor thin margins when finally priced up?
  2.    #62  
    Quote Originally Posted by transient View Post
    It was estimated that HP lost nearly half a billion in the firesale. That's with what 1 million units tops? You think any company is prepared to drop a couple of billion dollars to win over 10 million budget hunters on a future device that would then be destined to have razor thin margins when finally priced up?
    Then we should all give in to Apple and leave the tablet space.
    If this helped you hit thanks.
  3. #63  
    Quote Originally Posted by transient View Post
    It was estimated that HP lost nearly half a billion in the firesale. That's with what 1 million units tops? You think any company is prepared to drop a couple of billion dollars to win over 10 million budget hunters on a future device that would then be destined to have razor thin margins when finally priced up?
    So HP lost half a billion on a tablet that cost them ~$300 to make and then sold for $99?? The HP TouchPad must be more magically than the iPad if it can generate enough real money to lose $500 per unit

    Actual estimates put it at $100-$250 million obviously alot but we could even say that about a $100-$250 TP vs a $500 price...
  4. #64  
    Quote Originally Posted by SnotBoogie View Post
    The problem is ANYBODY that wants to profit can't sell a tablet for $99. TPs are selling because it's cheap. It's like Borders bookstores. There was nobody buying squat from Borders until a few weeks ago when they went bankrupt. then everything at Borders went on sale for 50%-75% off and Borders was full of people. It doesn't mean Borders in now a viable business. Because the only way to keep selling books at borders is to sell every product for a loss. That's the unfortunate position HP and the touchpad is in. It won't sell well at full price only a steep loss. and nobody is going to try sell tablets for a loss.
    While the Borders comparison is correct, it only address part of the equation, though. What Borders cannot do that whoever owns webOS can do is to continue to generate revenues off the items they sold at deep discounts. New TP purchasers will generate revenues for HP via app and accessory purchases.

    Furthermore, what HP has done is establish the two extremes - little demand at initial prices and tremendous demand at fire sale prices. In between those two points is a curve that includes an inflection point where price x quantity demanded results in the highest revenues for the device itself. The question becomes whether that curve ever enters into a break even or better situation for the manufacturer and if any future expected revenues are sufficient to convince a manufacturer to use the TP as a loss/break even/small profit leader.

    To that end, I think the rate at which the new users that acquired their TP during the firewall purchase apps and accessories will go a long way toward the attractiveness of the platform to prospective phone and pad licensees.
    aberndotnet likes this.
  5. #65  
    Quote Originally Posted by kkhanmd View Post
    Then we should all give in to Apple and leave the tablet space.
    I do not own a iPad or ever plan on owning another tablet that runs a mobile-like OS, but this is starting to look more and more like the iPod market. It is what it is.

    Unless you plan on never making any money, Windows 8 melting the tablet and desktop OS together has the best shot in my opinion.
    d3ac0n likes this.
  6. #66  
    >>New TP purchasers will generate revenues for HP via app and accessory purchases.


    Even the behemoth App Store, Apple's, only generates about 1% of their revenues.

    Consider HP, not having it built up yet will not be as efficient. There is no way they could make (enough) money on that sliver of income -- there are simply not enough potential buyers in the world -- to pay for the salaries associated with WebOS: the management requirements of the app store, or the technical employees needed to continue to make TP viable via updates, APIs, OTA, communications, etc.

    Impossible. And HP knows this, which is why they cut the arm off.
  7. #67  
    Quote Originally Posted by MichaelMikado View Post
    So HP lost half a billion on a tablet that cost them ~$300 to make and then sold for $99?? The HP TouchPad must be more magically than the iPad if it can generate enough real money to lose $500 per unit

    Actual estimates put it at $100-$250 million obviously alot but we could even say that about a $100-$250 TP vs a $500 price...
    $300 to make but what about R&D, packaging, marketing, etc.
  8. #68  
    Quote Originally Posted by finngirl View Post
    >>New TP purchasers will generate revenues for HP via app and accessory purchases.


    Even the behemoth App Store, Apple's, only generates about 1% of their revenues.

    Consider HP, not having it built up yet will not be as efficient. There is no way they could make (enough) money on that sliver of income -- there are simply not enough potential buyers in the world -- to pay for the salaries associated with WebOS: the management requirements of the app store, or the technical employees needed to continue to make TP viable via updates, APIs, OTA, communications, etc.

    Impossible. And HP knows this, which is why they cut the arm off.
    Are you saying that the Apple Store generates 1% of Apple's overall revenue or that it only adds 1% onto their revenues from iPads (i.e. every $500 spent on an iPad results in $5 spent on apps)? If it's the former, that's a large number, even though it's a small percentage.

    My point was simply that webOS can be attractive to a company that can make a "good enough" pad cheaper or a very competitive pad at a similar price because there are other revenue strems beyond just the sale.
  9. #69  
    A quick google (from 2009): How Much Does Apple Make from the App Store? | News & Opinion | PCMag.com

    With over one billion apps downloaded, surely Apple has been making a mint off of the iPhone App Store, right? Well, not exactly--not when you factor in the amount of free apps available and the percent that Apple actually skims off of the paid programs.
    Lightspeed Venture Partners has been crunching the numbers, trying to figure out exactly how much the company has made off the brisk app sales. Accord to the firm, the number of actual paid apps sold likely comes out in the 25-60 million range. If Apple gets a 30 percent cut of all of those apps, which sell at a median of $2.65, the company has made somewhere in the range of $20 to 45 million.

    Now that's not exactly an astronomical number for a company of Apple's size, especially given the total number of apps downloaded thus far. Still, considering the backseat Apple gets to take in the design of said apps, it's still a pretty sweet fallout.

    But in the end, Apple has always been more interested in the platform than the apps themselves. Apple sells iPhones, first and foremost, and the popularity of the App Store, paid or otherwise, can only help things on that front.

    I think the gist is that app stores make a particular platform more attractive to the consumer, allowing someone to sell more hardware. And can lock you in to that platform.
  10. #70  
    Quote Originally Posted by AZBigE View Post
    While the Borders comparison is correct, it only address part of the equation, though. What Borders cannot do that whoever owns webOS can do is to continue to generate revenues off the items they sold at deep discounts. New TP purchasers will generate revenues for HP via app and accessory purchases.

    Furthermore, what HP has done is establish the two extremes - little demand at initial prices and tremendous demand at fire sale prices. In between those two points is a curve that includes an inflection point where price x quantity demanded results in the highest revenues for the device itself. The question becomes whether that curve ever enters into a break even or better situation for the manufacturer and if any future expected revenues are sufficient to convince a manufacturer to use the TP as a loss/break even/small profit leader.

    To that end, I think the rate at which the new users that acquired their TP during the firewall purchase apps and accessories will go a long way toward the attractiveness of the platform to prospective phone and pad licensees.
    Relying on people buying accessories is a questionable business plan because there is it is unlikely that people will buy enough even for the TP to break even. I have a pre minus. i've never bought a single accessory. I don't even own a touchstone. I even needed a new wall charger last week when i lost mine. Nobody had any. Nobody. I ended up buying a cheap micro usb to usb cable from Frys. Also not an HP or Palm product so they got no money. So people buying accessories is not remotely a given. Plus many accessories would be third party so that wouldn't go to hp. But even if it's just hp. You're expecting people to make up $200 to $300 in just accessories to get back your full purchase price of a touchpad. That's not a reasonable expectation from most consumers so you're revenue stream is hardly certain. And you mention apps. Most apps are not made by HP so they'd probalby only take a small percentage or maybe a fee to put the app in the market. And no sane business is gonna try to sell tablets when they are dependent on such an unpredictable factor to make a product profitable.
    You come at the king. You best not miss.
  11. ijip's Avatar
    Posts
    885 Posts
    Global Posts
    960 Global Posts
    #71  
    the only problem with this sale is that there is no more future stock of touchpads left to sell after.

    so hopefully we will breaka million, and then what?
    unless HP decides to change its policy, there will not be another webos device for at least another 9 months and 12 months for a phone....

    so again, another waisted year for webos....
    Want to help design and write an app?
    follow me at Twiiter @ijip
    THANKS~!!
  12.    #72  
    so Apple decreased the price of IP-1 to 299
    If this helped you hit thanks.
  13. cgk
    cgk is offline
    cgk's Avatar
    Posts
    3,868 Posts
    Global Posts
    9,556 Global Posts
    #73  
    Quote Originally Posted by kkhanmd View Post
    so Apple decreased the price of IP-1 to 299
    Good sign the iPad 3 is on it's way, they will run down stock and then the iPad 2 will step in its place. Will make no difference to people buying a Touchpad they were never going to pay 200 let alone 299!

    I couldn't even bring myself to spring for a reduced touchstone.

    cheap users are... Cheap.
  14. #74  
    Quote Originally Posted by CGK View Post
    Good sign the iPad 3 is on it's way, they will run down stock and then the iPad 2 will step in its place. Will make no difference to people buying a Touchpad they were never going to pay 200 let alone 299!

    I couldn't even bring myself to spring for a reduced touchstone.

    cheap users are... Cheap.
    I disagree - the net $299 price during the staples coupon sale a few weeks ago generated a bunch of sales. I think that was the max revenue curve. I don't know how much HP would lose on each one at that price, though. Imo, that was the way to go, but by that point the decision had been made. Plus the pre3, coming on the heels of the ip5, the sgs2 in america, and the ice cream nexus would have garnered about 5 sales.
    irwinr12 likes this.
  15. #75  
    those are refurbished ipad 1s. they don't even still sell ipad 1s as far as i know. And they are sold out of those at $299 anyways. But i doubt an ipad 3 is coming before next year. Or xmas at the earliest. But if they were getting ready for an ipad 3 they'd be dropping the ipad 2 price.
    You come at the king. You best not miss.
  16. #76  
    Quote Originally Posted by freeoscar View Post
    I disagree - the net $299 price during the staples coupon sale a few weeks ago generated a bunch of sales. I think that was the max revenue curve. I don't know how much HP would lose on each one at that price, though. Imo, that was the way to go, but by that point the decision had been made. Plus the pre3, coming on the heels of the ip5, the sgs2 in america, and the ice cream nexus would have garnered about 5 sales.
    Given the frenzy that occured around the $299 TouchPad sale at Staples, it's safe to say that the max revenue point was probably a little over $299, maybe $349 or so.

    If the TouchPad would have been relased at $349, it probably would have done much better. But, even if that was the max revenue point, it may not have been enough *margin* to make it worthwhile. Margins are often as important or even more important than profits.

    -Jeremy
  17. #77  
    Quote Originally Posted by CGK View Post
    If we get a discount in the UK to match the US I will literally eat my hat, when I phoned HP they said themselves that they didn't expect it to particularly good because they simply didn't have the same level of stock as the US to dump.
    How's that hat taste?

  18. jamex's Avatar
    Posts
    154 Posts
    Global Posts
    487 Global Posts
    #78  
    Quote Originally Posted by MichaelMikado View Post
    So HP lost half a billion on a tablet that cost them ~$300 to make and then sold for $99?? The HP TouchPad must be more magically than the iPad if it can generate enough real money to lose $500 per unit

    Actual estimates put it at $100-$250 million obviously alot but we could even say that about a $100-$250 TP vs a $500 price...
    You need to consider the marketing expenses. Those TV ads are not cheap so HP lost a ton of money. I am not an analyst but even I could have told them that the touchpad would be a flop.
  19.    #79  
    Hey with 99 dollars, they dont even need to advertise, all viral advertising. Sweet.
    If this helped you hit thanks.
  20. #80  
    Maybe this will make people ask,Why are tablets priced higher then netbooks,some pc's,and laptops? Tablets should be priced at $199-$300
Page 4 of 6 FirstFirst 123456 LastLast

Posting Permissions