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  1.    #1  
    Hi all,

    FYI. See link.

    take care,

    Jay

    HP's TouchPad Fire Sale: Many Losers in the Tablet Flameout
    IBTimes Staff Reporter | August 21, 2011 10:39 AM EDT

    HP's TouchPad Fire Sale: Many Losers in the Tablet Flameout - International Business Times

    HP's promised hot new tablet product, the TouchPad, has turned in an instant into an embarrassing fire sale flop. The company's TouchPad liquidation sale, selling 16GB units for $99 and 32GB for $149 is attracting buyers, but hurting the brand and leaving many questions unanswered.

    HP has said it will discontinue support of the TouchPad and its WebOS system, potentially impacting many who buy the fire sale product at a loss for service and updates in the future. Already on Saturday, with so many units sold in a flurry as retailers across the world slashed prices, the company's call center blew up.

    They got TouchPad's at a discount, but what price will they really pay?

    Demand of callers with questions and service needs was more than the unit could hand and its online database spun with errors as at the IT company's server designated to handle TouchPad sales and service was overwhelmed.

    Here are the losers in the HP TouchPad fiasco:

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    --HP's brand image. The company is the largest PC company in the U.S. HP says it is considering spinning off its PC unit, but that spinoff consideration was dealt a big blow as HP's brand has been tarnished by the quick-decision TouchPad bailout only weeks after the tablet was launched as a competitor to Apple's best-selling iPad tablet. HP has long been a respected brand, but almost overnight, the company put a big stain on years of earned value.

    --Major Retailers. Consumers like a deal, but they still expect service with that deal. Retailers are gaining traffic from the fire sale, which they like. But fire sale customers are also known to be the most difficult to manage. They want a deal, but they want premium service as well, and the demand is more than many retailers can keep up with.

    At leading big box electronics retailers like Best Buy that also provide service, the lines could be long for some time to come -- not exactly a winning proposition. The margins are low, and the headaches are high.

    --Initial TouchPad buyers. A fire sale buyer who gets a TouchPad for $99 when the product is being discontinued understands the risks. Someone who bought a TouchPad for $499 three weeks ago understands they've been had -- and they have. HP just trashed their trust and its reputation with those buyers.

    They bought a dog with no legs, and they expected it to be able to run fast. They got burned, and they are angry -- and rightfully so.

    --Apple. Apple is taking a hit on this even though it is losing what some called a competitor. But at $499, the TouchPad actually helped the iPad; nobody wanted the TouchPad, and Apple was able to maintain the pricing structure.

    Apple has been the tablet industry leader, but now HP is crushing the price standard in the space. HP came out of the gate with the right ambition, pricing its tablet similar to Apple's iPad. But now, the tablet market is seeing a glut of low-priced products, and it's not like the TouchPad doesn't work okay. It does.

    Now, keeping the pricing standard will be hard for Apple.
    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  
    We've got WebOSInternals....we don't need HP!!!
    The value of knowledge is not in its possession, but in its use.
    balla2g2 and Typo Lad like this.
  3. #3  
    Quote Originally Posted by ilovedessert View Post
    Now, keeping the pricing standard will be hard for Apple.
    I don't believe this for a second...

    Now if HP was willing to take such a huge loss, it would have been smarter to make use of this loss by, say, pricing the TP at $200-300, intro price. Get a whole bunch of loss leader TP's out there in the field. Jump start webOS app development, and YES, then Apple might have trouble keeping its pricing where it is. But not now...

    low pricing of week-old bread doesn't lower the price of fresh bread...
  4. #4  
    Quote Originally Posted by ilovedessert View Post

    --Apple. Apple is taking a hit on this even though it is losing what some called a competitor. But at $499, the TouchPad actually helped the iPad; nobody wanted the TouchPad, and Apple was able to maintain the pricing structure.

    Apple has been the tablet industry leader, but now HP is crushing the price standard in the space. HP came out of the gate with the right ambition, pricing its tablet similar to Apple's iPad. But now, the tablet market is seeing a glut of low-priced products, and it's not like the TouchPad doesn't work okay. It does.

    Now, keeping the pricing standard will be hard for Apple.
    The writer is way off in their assessment of this.

    1. The firesale is short-term, not sustainable. If someone could succeed in making a $200 tablet over the long term eg. Make a profit then apple make actually start to notice then.
    2. The public knows why the TP is being sold at these prices and it merely underscores the leader position that the iPad already has in the minds of mass consumers.
    3. there are no signs at all that apple can't continue to keep selling iPads at their current pricing levels, none at all. Short term sales might be temporary slowed due to the fact that bargain buyers have now picked up a viable tablet replacement at much loser cost than an iPad but the ones more hurt are the other players such as the nook color, transformer, xoom, and playbook. Those budget-conscious buyers would otherwise have set their sights on the <$500 tablets, and not the more expensive iPad anyway.
    Last edited by filmbuff; 08/21/2011 at 11:24 PM.
  5. #5  
    HP should of made the TP a loss leader from the start. Get a million or two of these devices out there to jumpstart the eco-system, then release newer versions. They've already invested (my guess) over $2 billion, so another few hundred million to ensure success seems like a no-brainer.

    This is similar to Microsoft and the xbox... the xbox was a nobody... Playstation ruled. Now look at the xbox... the difference is, even when Microsoft made mistakes, they continued to push forward. This COULD of been a success for HP, but they chickened out too soon.

    It's a damn shame. webOS, the Touchpad, it's developers and customers deserved better.
    Last edited by Prdamrican; 08/21/2011 at 11:35 PM. Reason: typos
  6.    #6  
    Quote Originally Posted by Prdamrican View Post
    HP should of made the TP a loss leader from the start. Get a million or two of these devices out there to jumpstart the eco-system, then release newer versions. They've already invested (my guess) over $2 billion, so another few hundred million to ensure success seems like a no-brainer.

    This is similar to Microsoft and the xbox... the xbox was a nobody... Playstation ruled. Now look at the xbox... the difference is, even when Microsoft made mistakes, they continued to push forward. This COULD of been a success for HP, but they chickened out too soon.

    It's a damn shame. webOS and the Touchpad deserved better.
    Hi all,

    Ironically the TouchPad may well become the loss leader for webOS...I wonder what HP is going to do with the Pre2, Veer and Pre3?

    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
    prdamrican#AC likes this.
  7. #7  
    You can tell how clueless the article writer is when he says, is it even worth it at 99 bucks? Lol meanwhile every single store from here to timbucktwo is sold out.
    LCGuy and ilovedessert like this.
  8. #8  
    Quote Originally Posted by Weaser999 View Post
    You can tell how clueless the article writer is when he says, is it even worth it at 99 bucks? Lol meanwhile every single store from here to timbucktwo is sold out.
    It's cvalled "Writing in a vacum"; he hasnt looked at the lines at the Best Buy, and likely has NEVER tried a WebOS device to realize that if anyone questions the integrity of WebOS, once they try it, they are more than likely to be incredibly impressed and realize that they just got a great deal.

    "The more I learn, the more I realize just how little I really do know!" -Albert Einstein

    ilovedessert and balla2g2 like this.
  9.    #9  
    Quote Originally Posted by LCGuy View Post
    It's cvalled "Writing in a vacum"; he hasnt looked at the lines at the Best Buy, and likely has NEVER tried a WebOS device to realize that if anyone questions the integrity of WebOS, once they try it, they are more than likely to be incredibly impressed and realize that they just got a great deal.

    Quote Originally Posted by Weaser999 View Post
    You can tell how clueless the article writer is when he says, is it even worth it at 99 bucks? Lol meanwhile every single store from here to timbucktwo is sold out.
    Hi all,

    Thank you well said!

    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
  10. #10  
    i am hoping very much this will sap off the prices of galaxy tab 10.1
  11. #11  
    I don't think he's that far off base. People like bargins, regardless if they need/want it or not. If someone hears there's a tablet that was $500 and is now selling for $100, people are going to line up to get it. You can't even get a cheap knockoff Android tablet, used netbook, or PMP from China for $100. You would see that same thing (probably worst) if they were selling some cheap netbook for $100. Look at Black Fridays. People line up around the store to get 30% of a no named LCD TV. Here's 500% off a HP tablet. I suspect that most of these tablets will end up in the hands of children.

    Apple won't have a problem keeping it's price standard, but for the crowd of "not iPad" tablet's its a different story. The TP being dumped has filled the demand for alot of people on the fence about tablets and not willing to pay Apple's premium. So the rest of the $400 tablets are going to gather more dust than they're already gathering. They can't compete with a $100 tablet and can't compete with iPad, at any price level.
  12. #12  
    Even though it’s not a good look....

    I wish Hp was a double agent and this was there master plan to bring WebOs to many people's hands.

    I'm having fun so don't burn me.

    Bring out the touch pad at 599 and 499 showing it's value as close to Ipad. Then say "We are giving up on the Touch Pad," giving a reason for a drastic price slash. No one questions the value of the Touch Pad, It was priced at apples prices. Everyone thinks $99 is a crazy deal so even the ones on the fence about owning one grabs one at the store. And then Hp goes "April Fools, developers we were joking, make your apps. We have great plans for WebOs"

    I am thinking very optimistic but its America and I am free to do so.

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