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  1.    #1  
    Hi all,

    FYI. See link.

    take care,

    Jay

    HP could lose $400m on Touchpad price cuts

    Opinion Leo's sudden U-turn bleeds money
    By Kate O'Flaherty

    Hp could lose $400m on touchpad price cuts- The Inquirer

    Mon Aug 22 2011, 17:10
    MAKER OF EXPENSIVE PRINTER INK HP's sudden price cuts on its Touchpad tablets in the US had consumers rejoicing at the $99 and $149 price tags, but could leave HP out of pocket.

    Samsung shipped two million Samsung Galaxy Tabs in the first three months after launch. As a huge PC maker with previously high hopes for its WebOS tablets, it is
    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. Xadion's Avatar
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    #2  
    samsung shipped...

    well hp shipped...


    the galaxy tab sucks very feirce.
  3. #3  
    And how much money would HP have lost if they didn't sell any of their excess inventory?
    -- Bring back DateBk!!

  4. #4  
    Good.

    Naw, but they definitely saw this coming once they decided to sell the stock. It's not like they can't do some fairly basic math...
  5. #5  
    how much would they have lost if they didnt kill it and actually invested in it? Probably would have killed all other tablets out there and made a nice profit...****ing *******, I really hate HP.
  6. resteasy's Avatar
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    #6  
    they would have lost money if they didn't sell plus think of the accessories (someone think of the accessories :0 )
    They turned waste into something a little less wasteful and if they do sell off webos then they could make up for loss and come out with a gain on a 'failed' product.
  7. #7  
    Quote Originally Posted by DS_Palm_Lvr View Post
    And how much money would HP have lost if they didn't sell any of their excess inventory?
    How much would they have made if they produced better hardware and actively chased large developers
    ilovedessert likes this.
  8. #8  
    I doubt they will lose anywhere near that much, even on paper.

    I bet, at most, 750,000 units mfr'd.

    And production cost per unit is likely around $200 or less (versus the reported $328/unit, which doesnt include production scale discounts).

    $100 - $150m tops.

    The price of a decent marketing campaign.
    "The more I learn, the more I realize just how little I really do know!" -Albert Einstein

  9. #9  
    I thought it cost them like 300 per unit... there at least loosing 200 or more per unit.
  10. #10  
    Quote Originally Posted by mobileman View Post
    How much would they have made if they produced better hardware and actively chased large developers
    No argument there.
    -- Bring back DateBk!!

  11. rkguy's Avatar
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    #11  
    I wonder if they will be able to put it as a write down?
    ...This programming stuff is actually addictive but really hard :/
  12. #12  
    I wonder if Bradley launched the firesale with out Leo knowing he was going to, just to poke him for deciding to get rid of the PSG... Well played, sir.
  13. #13  
    See that would have been a great investement in WebOS instead of a loss. The devices are out there. With those kinds of numbers devs will willingly develope for the platform. But nooooo, they had to come out and say that they were killing it....

    Hope Bradley did do this without Leo know, serves him right.
    Proud Canadian owner of
    Palm Pre- WebOS 2.1 Sept 2009
    HP Touchpad WebOS 3.0 July 2011
    Palm Pre3 AT&T October 2011
  14. #14  
    Ha! They didn't loose nearly as much on WebOS as they did the 16 Billion (Reuters) that they lost when their stock tanked Friday!
  15. #15  
    whatever they lose from the budget prices is nothing compared to what they would have lost if they didnt sell them at all.

    and tbh, announcing after <2months that you give up and their cancellign everything didnt help matters improve.
  16. #16  
    i was gonna say that i'm glad that they lost those 12B but it would inhumaine considering that its not apotheker who's gonna loose it's their shareholders pensions
  17. #17  
    HP should have sold the 16GB for 250 and the 32GB for 350. Now they are virtually giving them away. Those guys aren't too bright.
  18. #18  
    Between their stock taking big hits and buying Autonomy, the 400 million is drop in the bucket.

    If they had come out and said, "We want to get these in the hands of everyone, so we are going to sell them at $199 and $249." You would have seen them be able to move about 5 million in a quarter. Of course that would have represented a $100 loss on each, but for $500 million (again a small drop compared the $16million stock value lost and the 7 million they paid for Autonomy), they'd have a good chunk of the market.

    If you factor in app sales and accessories, they probably would have lost only $200 million. They could have followed it up with a TouchPad 2 - better hardware at $299 and $349 and cut the loss on each one close to nothing. In the meantime they'd have established critical mass with perhaps double digit millions out there by the end of the year (with a good holiday season).

    Then you'd have the scale that everyone talked about. Selling all the apps and accessories at healthy margins.
  19. #19  
    the stock lost a lot more than $16million.
  20. #20  
    $12.5 billion lost when the stock dropped 20%. HP is also paying $10 billion for Autonomy. Overpriced. The loss HP incurred on WebOS is small in comparison. Had they spun it differently it wouldnt have been nearly as bad either.
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