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  1.    #1  
    Hi all,

    FYI. See link.

    Take care,

    Jay

    $99 is the magic tablet price point
    By Julianne Pepitone @CNNMoneyTech August 23, 2011: 12:24 PM ET

    TouchPad sell-out shows $99 is the magic tablet price point - Aug. 23, 2011

    NEW YORK (CNNMoney) -- Hewlett-Packard couldn't sell many TouchPad tablets for $499. It couldn't even sell them at $399, which is around what they cost to make. But $99? Bingo.
    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  
    false.

    thats why they are going for $250-300 on ebay?

    the magic price point is $249 and $299.

    a tablet should be at or less than the price of a netbook
    @agentmock

    Audiovox SMT5600 (WM) --> Cingular 8125 (WM) --> Sprint Mogul 8525 (WM) --> Palm Pre (webOS)- --> Sprint Franken Pre2 (webOS) + 32gb Touchpad (webOS)
  3. cashmonee's Avatar
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    #3  
    Unfortunately it costs a lot more than that to make. Plus I think the iPad is showing that price point doesn't matter when you have a top-notch product.

    The TouchPad didn't sell because it was half-baked at release and has no ecosystem. It is selling now because people love a deal.
    dangson likes this.
  4. #4  
    They'd sell a lot of Ferrari's at $20,000 as well, doesn't mean that's the price they should sell them at.
  5. NSA
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    #5  
    I know I'd never buy a tablet for over $200.. just because I don't have a need/desire for something more expensive, I'd rather have a small notebook.

    But a sub $200 price is very appealing for something I can tote around the house to quick webbrowsing etc.
    Syndil likes this.
  6. #6  
    even at $299 for 16gb, theyd only lose $5 each and at $349 for 32gb they'd make $20ish each.

    lose zero money, undercut EVERYONE else.
    @agentmock

    Audiovox SMT5600 (WM) --> Cingular 8125 (WM) --> Sprint Mogul 8525 (WM) --> Palm Pre (webOS)- --> Sprint Franken Pre2 (webOS) + 32gb Touchpad (webOS)
  7. #7  
    The problem is that right now $200 will not get you anything as good as a TouchPad or an iPad, unless there's a firesale like the one going on right now, both of these tablets cost more to make this just counting the parts cost, let alone the cost of marketing, R&D, sales overheads, shipping and everything else. The $99 price point is not a viable business, its just HP getting rid of their stock as quickly as possible.

    The fact that the iPad 2 is a really great tablet for the price. As HP showed with the original TouchPad pricing, its hard to beat Apple on price if you want to actually make money on these things.
  8. #8  
    Quote Originally Posted by cashmonee View Post
    Plus I think the iPad is showing that price point doesn't matter when you have a top-notch product.
    all anything apple does is show that you can create a cult following and grab 20% of a market, rip them off and stash billions of cash.

    there is no reason to pay $599 for the cheapest apple tablet....ZERO

    but people do.

    theres no reason to pay $1200 for a computer that a $499 *cough* hp *cough* is just as fast as. but apple-ites do it.
    Last edited by HelloNNNewman; 08/23/2011 at 08:25 PM. Reason: rude
    @agentmock

    Audiovox SMT5600 (WM) --> Cingular 8125 (WM) --> Sprint Mogul 8525 (WM) --> Palm Pre (webOS)- --> Sprint Franken Pre2 (webOS) + 32gb Touchpad (webOS)
  9. #9  
    Quote Originally Posted by 65fastback View Post
    even at $299 for 16gb, theyd only lose $5 each and at $349 for 32gb they'd make $20ish each.

    lose zero money, undercut EVERYONE else.
    Those prices are more realistic. Any price that causes your inventory to disappear in minutes is probably too low.
    Palm III-->Handspring Visor-->Sony Clie PEG-NR70-->no PDA -->Palm Treo 755p-->Palm Pre-->HP Veer
  10. #10  
    Quote Originally Posted by 65fastback View Post
    even at $299 for 16gb, theyd only lose $5 each and at $349 for 32gb they'd make $20ish each.

    lose zero money, undercut EVERYONE else.
    You really think that if they sold it at $20 above the cost of the parts, they'd be making money? Businesses have overheads and webOS (unlike Android) ain't free.
  11. #11  
    Quote Originally Posted by dr_lha View Post
    They'd sell a lot of Ferrari's at $20,000 as well, doesn't mean that's the price they should sell them at.
    But you can still buy a sedan that gets the job done for less. Not everyone needs luxury; some are just looking for practicality.
  12. #12  
    Quote Originally Posted by 65fastback View Post
    false

    all anything apple does is show that you can create a cult following and grab 20% of a market, rip them off and stash billions of cash.
    iPad doesn't have 20% of the market for tablets though, the iPad IS the market for tablets. The failure of any other tablet to make a dent in the market shows that there isn't really a market out there for tablets, there's a market for iPads (and apparently $99 TouchPads!).
  13. #13  
    Quote Originally Posted by bobsentell View Post
    But you can still buy a sedan that gets the job done for less. Not everyone needs luxury; some are just looking for practicality.
    The problem is, that the TouchPad is the sedan. It costs $499 (the price that HP originally sold it at). I've used some sub-$200 tablets, trust me, you're not getting a sedan, you're getting a $200 rusted out Gremlin.
  14. #14  
    Quote Originally Posted by dr_lha View Post
    You really think that if they sold it at $20 above the cost of the parts, they'd be making money? Businesses have overheads and webOS (unlike Android) ain't free.
    if theyre smart, the "cost to build" includes the overhead, etc.

    Quote Originally Posted by dr_lha View Post
    iPad doesn't have 20% of the market for tablets though, the iPad IS the market for tablets. The failure of any other tablet to make a dent in the market shows that there isn't really a market out there for tablets, there's a market for iPads (and apparently $99 TouchPads!).
    thats half my point. 100% of a 20% market (think people that use smart phones and laptops and how many own a tablet) is still 20%

    iphone....20%

    apple tv....20% or less

    apple laptops....20%

    apple is a cult machine. this is why they only ever capture about 20% of a given market.
    @agentmock

    Audiovox SMT5600 (WM) --> Cingular 8125 (WM) --> Sprint Mogul 8525 (WM) --> Palm Pre (webOS)- --> Sprint Franken Pre2 (webOS) + 32gb Touchpad (webOS)
  15. cashmonee's Avatar
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    #15  
    Quote Originally Posted by 65fastback View Post
    all anything apple does is show that you can create a cult following and grab 20% of a market, rip them off and stash billions of cash.

    there is no reason to pay $599 for the cheapest apple tablet....ZERO

    but people do.

    theres no reason to pay $1200 for a computer that a $499 *cough* hp *cough* is just as fast as. but apple-ites do it.
    You clearly haven't used an iPad for a significant amount of time. While the Touchpad is usable it pales in comparison to the iPad.

    None of that matters though. The truth is anything under $300 is probably not sustainable. At sub-$400 you still are talking margins similar to pc margins which hp is running away from as fast as it can.

    In the end, the only thing the firesale proves is people love a great deal.
  16. #16  
    Quote Originally Posted by cashmonee View Post
    You clearly haven't used an iPad for a significant amount of time. While the Touchpad is usable it pales in comparison to the iPad.
    does the ipad I use for work everyday for the last year count?
    @agentmock

    Audiovox SMT5600 (WM) --> Cingular 8125 (WM) --> Sprint Mogul 8525 (WM) --> Palm Pre (webOS)- --> Sprint Franken Pre2 (webOS) + 32gb Touchpad (webOS)
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  17. cashmonee's Avatar
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    #17  
    Quote Originally Posted by 65fastback View Post
    does the ipad I use for work everyday for the last year count?
    Then I am sure you agree that the iPad is the superior product, and hence the reason the iPad is the tablet market. I'm not trying to get into an Apple war here. All I am saying is that, one, the Touchpad price had nothing to do with its demise, and two, anything below $300-$350 for a tablet is not sustainable at this point.
  18. #18  
    Tablets shouldn't cost more then a laptop or netbook!
    extra and cocochannel like this.
  19.    #19  
    Quote Originally Posted by prethadd81 View Post
    Tablets shouldn't cost more then a laptop or netbook!

    Hi

    How right you are!

    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
    extra likes this.
  20. #20  
    Quote Originally Posted by NSA View Post
    I know I'd never buy a tablet for over $200.. just because I don't have a need/desire for something more expensive, I'd rather have a small notebook.

    But a sub $200 price is very appealing for something I can tote around the house to quick webbrowsing etc.
    Ditto. And I don't buy that it costs HP $300 or more to make a tablet. I've already predicted that the average price of a high-end tablet will eventually plummet to $200 or less. Touchpad was a bit more and a bit faster than I expected, but still, I think it may have shoved the market in the right direction.
    Touchscreens are a fad.
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