Results 1 to 15 of 15
Like Tree1Likes
  • 1 Post By Titano
  1.    #1  
    Hi all,

    FYI.

    See link.

    Take care,

    Jay

    HP TouchPad Fire Sale Could Hurt Low-Volume Competitors
    By John P. Mello Jr., PCWorld Aug 21, 2011 8:05 AM

    HP TouchPad Fire Sale Could Hurt Low-Volume Competitors | PCWorld

    HP’s TouchPad fire sale could drive low-volume tablet makers out of the market, further padding Apple’s market share and reducing consumer choice in the long term.

    Here's the scenario that's developing.

    Suppose HP sells half a million TouchPads at deeply discounted prices -- $99 for the 16GB WiFi model, which originally sold for $399, and $149 for the 32GB WiFi version, which originally sold for $499. That isn’t a stretch, since it sold an estimated 350,000 of the slates during the first wave of bargain basement pricing with a second wave to come.

    Those sales will hurt all tablet makers, but the impact will be less severe for a tablet maker selling 9 million units a quarter, like Apple, than those selling 500,000 a quarter, like Samsung or Research In Motion.

    Everyone likes a bargain, so it's easy to understand why a tablet with critically acclaimed technology selling for $99 is flying off the shelves like there's no tomorrow. Actually, there is no tomorrow for the TouchPad, because HP won't be making any more of them.

    While consumers may benefit from those "everything must go" prices in the short run, in the long run, they may be contributing to hurting competition in the market and furthering Apple's dominance of the market.

    Some of those ill effects on low-volume tablet makers might have been abated if national electronics behemoth Best Buy had stuck to its decision to return its TouchPad inventory to HP. But once the big box retailer got a sniff of the sales velocity of the tablets at the HP website, it had a change of heart. "Due to HP’s decision to discontinue its TouchPad product, Best Buy will now provide clearance pricing for all HP TouchPad models regardless of previously advertised prices or promotions," the company said in one of its online community forums.

    Best Buy added that customers who bought a TouchPad after June 19 can receive a refund for the difference between the purchased price and the clearance price. Or if they're skittish about owning a discontinued model, they can return the unit to where they bought it for a full refund, it added.

    Ironically, HP has decided to discontinue the TouchPad just when signs were appearing that it may be gaining some traction in the market.

    A study released last week by Robert W. Baird & Co. showed that the iPad's popularity remains dominant, but in second place, albeit a distant second place, was the TouchPad. Of the 1100 people polled for the survey, 94.5 percent said they were interested in purchasing an iPad over any other tablet device. If they couldn't get an iPad, though, 10.3 percent of the respondents said they'd be content with a TouchPad.

    "Although the figures differ depending on who you talk to, it is clear the complete dominance enjoyed by the iPad a year ago is beginning to slip," wrote John Norris at RCR wireless News. "HP’s TouchPad has proved something of a dark horse."

    The demise of the TouchPad raises an interesting question about tablet pricing and whether it could be a key in breaking Apple's grip on the market.

    "[T]hink about the appeal of a quality $100 tablet," wrote Joe Wilcox in Betanews. "People are clamoring to buy a product with no future. HP isn’t going to make any more. There won’t be new cases or peripherals. Meanwhile WebOS’ future is uncertain. Still people are fighting to pay."
    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
  2. #2  
    good read

    thanks for that.
  3.    #3  
    Hi all,

    I just wonder if app writers and smartphone makers will stand up and take notice....after all there will now be several million new webOS converts...not to mention to the rest of the unsold Veers, Pre2 & Pre3's.....we shall soon see....maybe HTC or Samsung will now become interested in webOS for their phones...

    ...then again I'm a glass half full kind of guy!

    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
  4. #4  
    "[T]hink about the appeal of a quality $100 tablet," wrote Joe Wilcox in Betanews. "People are clamoring to buy a product with no future. HP isn’t going to make any more. There won’t be new cases or peripherals. Meanwhile WebOS’ future is uncertain. Still people are fighting to pay."
    Interesting thought. I was wondering the same thing myself. Is this just a black Friday type phenomenon where people will buy anything if it's cheap enough? Would there be the same run if the tablet was an Acer or Asus or some other lesser known brand? The market research guys will have a lot of fun with this one.
  5. #5  
    Here's my take. It's pretty evident that people either buy an ipad at the high price, or else they are not interested - unless the price it right. The simple fact is, except for us few webOS addicts, the rest of the world isn't really buying anything unless its a killer deal.

    What needs to happen now is HP needs to get it's head out if it's (expletive deleted ) and take advantage of this new demand and install base, ramp up TP GO and TP2 and consider this a marketing 101 lesson.

    It's not too late to see the error of your ways.
  6. #6  
    Very nice read, thanks! It is without a doubt very interesting from a marketing perspective, just to see customer behavior based on price changes. I'm convinced the TouchPad was getting recognition from the average consumer, their advertising campaign caught on with a lot of people, so I'm sure that HP would have surely become number 2 if they wanted to.

    I can only hope now that they have a better plan on hand, and that this new webOS user-base doesn't go to waste but instead serves as the foundation webOS needs to gain momentum. It's your move HP, license webOS to Samsung or HTC to make killer hardware or let webOS and yourself die off.
    ilovedessert likes this.
  7. #7  
    Quote Originally Posted by Prdamrican View Post
    What needs to happen now is HP needs to get it's head out if it's (expletive deleted ) and take advantage of this new demand and install base, ramp up TP GO and TP2 and consider this a marketing 101 lesson.

    It's not too late to see the error of your ways.
    Not going to happen when you already announce your plans at an investor conference call like they did last Thursday. Retracting on those would only mean lawsuits from investors. My cousin (who works for HP) said she lost over 300K of her retirement on Friday. She is not alone. CEOs have fiduciary obligation to give proper disclosure. Any back-tracking will create conspiracy theories and lack of investor confidence. Retailers and partners have also lost faith in HP as of Friday.

    The only way this happen is the Board decides to revolt and take over HP away from LEO and ousts him. Either way, it will be costly to the shareholders. Too much HP blood has been spilt in the last 72 hours.
  8. #8  
    Quote Originally Posted by virtualjock View Post
    Not going to happen when you already announce your plans at an investor conference call like they did last Thursday. Retracting on those would only mean lawsuits from investors. My cousin (who works for HP) said she lost over 300K of her retirement on Friday. She is not alone. CEOs have fiduciary obligation to give proper disclosure. Any back-tracking will create conspiracy theories and lack of investor confidence. Retailers and partners have also lost faith in HP as of Friday.

    The only way this happen is the Board decides to revolt and take over HP away from LEO and ousts him. Either way, it will be costly to the shareholders. Too much HP blood has been spilt in the last 72 hours.
    They announced they are killing the hardware, but made it clear enough that they are keeping webOS alive and are looking to license it.

    Just read this in the HP site regarding those who purchased the tablet this weekend:

    "We have received unprecedented orders as a result of the tremendous discount offered. This is clear confirmation to HP there is huge interest in building a webOS community. We apologize for any difficulty you may have had in ordering on the web or through the phone this weekend; it was as a result of selling out of our current inventory."

    So they wanted a confirmation? Well, there you go HP, get your *** to work and get us some apps and new hardware via Samsung or HTC. Whatever you do just don't screw up again please.
    Last edited by Titano; 08/22/2011 at 02:26 AM.
  9. #9  
    Quote Originally Posted by Titano View Post
    They announced they are killing the hardware, but made it clear enough that they are keeping webOS alive and are looking to license it.
    Yes, I know. The poster i was replying to suggested " ramp up TP GO and TP2 "

    This isn't going to happen. A TouchPad 2 isn't going to happen if you already announced you are getting out of the hardware business of mfging mobile hardware with a follow-up fire-sale.
  10. #10  
    1- "...why a tablet with critically acclaimed technology " Touchpad technology is not worse than iPad. It has everything that iPad has. In addition, it has Usb3, SD card slot and wireless charger . Infact, it has been shown that it runs faster.
    2- "...Actually, there is no tomorrow for the TouchPad, because HP won't be making any more of them..." who cares! You buy a tablet for $150, you watch movie, you surf the web, Facebook etc... and you toss it in a couple of years and get a better one. You would do exactly the same thing with iPad that "has tomorrow" and costs 3 times as much.

    3- The fact that Touchpad is selling like crazy for $250-$300 on Ebay, indicates that this device had the potential to be sold at that price or more. Hp IS stupid.
  11. ksom's Avatar
    Posts
    355 Posts
    Global Posts
    358 Global Posts
    #11  
    I think any company that can build a new $100 WebOS will give Apple a big headache. HP should have done this without saying no more devices. They could say they want to spin off the PSG and want to give WebOS a kick start. Once. There are enough developers and new to apps, they can push the price back up. They minimum they give the next owner of WebOS a chance to continue.

    Sent from mobile
    Palm V -> Treo 600 (lost) -> Treo 650 -> Centro -> Pre -> Photon
  12. #12  
    Quote Originally Posted by ksom View Post
    I think any company that can build a new $100 WebOS will give Apple a big headache. HP should have done this without saying no more devices. They could say they want to spin off the PSG and want to give WebOS a kick start. Once. There are enough developers and new to apps, they can push the price back up. They minimum they give the next owner of WebOS a chance to continue.

    Sent from mobile
    If you heard the conference call, licensing is also an uphill battle. If they licensed WebOS @ $5 per license, HTC or Samsung would need to sell 60 million units for HP to make $300 million. I've venturing they already lost 100-200 million on this firesale and add their $1.2 billion Palm acquisition.

    Apple, meanwhile, has $76 billion in the bank to fight any price-war. Apple also has Timothy Cook, who, has been proven to be a logistics supply-chain genius. Nobody, I mean, nobody can procure parts, manufacturing and components cheaper than Apple right now. They've already locked in components/mfgr for the next 2-3 years.
  13. cgk
    cgk is offline
    cgk's Avatar
    Posts
    3,868 Posts
    Global Posts
    9,556 Global Posts
    #13  
    Apple, meanwhile, has $76 billion in the bank to fight any price-war. Apple also has Timothy Cook, who, has been proven to be a logistics supply-chain genius. Nobody, I mean, nobody can procure parts, manufacturing and components cheaper than Apple right now. They've already locked in components/mfgr for the next 2-3 years.
    There was an article that appeared yesterday that said that HP tried to get the same screen as the ipad2 but Apple had locked down the supply to such an extent they had to go for a second-rate one and similar things happened to a lot of other components. HP simply couldn't get the parts to make a more competitive tablet.
  14.    #14  
    Hi all,

    Killing the hardware may have been part of a licensing deal...after all if some firm such as HTC and/or Samsung who make great hardware..may not want inferior hardware made by HP out there lowering the public's view of webOS...

    I posted an article last night about the fact that webOS has evolved far faster than the hardware that Palm had originally designed....hay I'm a glass half full kind of guy!

    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
  15. #15  
    "Some of those ill effects on low-volume tablet makers might have been abated if national electronics behemoth Best Buy had stuck to its decision to return its TouchPad inventory to HP. But once the big box retailer got a sniff of the sales velocity of the tablets at the HP website, it had a change of heart. "

    This doesn't make any sense. Even if Best Buy returned all their unsold TPs to HP, it's not like HP would've dumped them into the ocean. They would've been sold on HP.com to keep the fire sale going or passed down to liquidators.

Posting Permissions