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  1. coosmac's Avatar
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       #1  
    Losing $207 a Pop, H-P Brings Back Its iPad Rival - WSJ.com

    "Hewlett-Packard Co. said it will temporarily resume manufacturing of its ill-fated tablet computer just 11 days after killing its iPad rival as part of a sweeping corporate overhaul.

    The H-P TouchPad is dead; long live the TouchPad. Due to unexpected, almost cult-like demand for cheap TouchPads after H-P decided to kill its iPad rival, the company has decided to revive the tablet for a limited time. Ian Sherr and Ina Fried discuss on digits.

    The resurrection of the TouchPad follows a spike in demand after H-P, desperate to clear out unsold inventory that had piled up at retailers, slashed the price of the low-end model from $399 to $99.
    The decision to discontinue the TouchPad came less than two months after the tablet first went on sale in July, but made little traction against Apple Inc.'s iPad despite an earlier 20% price drop. H-P executives said sales were too weak to justify continued investment.
    H-P didn't say what it would charge for the new batch of TouchPads, but cautioned potential buyers there might not be enough to go around."


    I don't get it.....
  2. #2  
    I would speculate it's not so much of a resurrection as it is meeting its contractual obligations with the manufacturer.
  3. ap3604's Avatar
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    #3  
    Everyday I check the news websites looking for the headline:

    "HP investors kill Leo Apotheker over knowingly throwing their money down the drain"

    Leo seems like the modern day Black Sox scandal
    Rnp, Targon and ntjoe1 like this.
  4. #4  
    HP obviously gets components much less than what gets published in teardown articles.

    If they were taking such a massive hit financially from selling the TouchPad @ 99/149, they wouldn't perform a "final" run.
  5. DRFP's Avatar
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    #5  
    its because Apple lies about what it cost them (all of sudden in 2 years a hardware company makes more than M$ who makes software, windows the worlds most used software) then they base the cost of a tablet on that information.

    I'm so tired of Apple Fans posting "can't make a tablet for less than $400" yes if you are Apple , in the real world production costs can be 70% less.
    I'm not here to criticize the Touchpad but to learn how to make it better.
  6. #6  
    Yep, pretty sure that this is not a resurrection of the Touchpad. It's been stated that they're going to make one final production run to get rid of the components and to satisfy demand of the product. The more important thing is.... Have they found a new hardware manufacturer to make webOS products for them? Still waiting to hear some good news from HP on that front.
  7. #7  
    as said - Leo spoke before notifying anyone about killing off the touchpad. suppliers and manufactures were committed, based on orders placed by none other than HP, to build x number of touchpads.

    HP is not doing anything on purpose to help WebOS install base grow, rather they are trying to avoid a **** load of lawsuits from parts manufactures, suppliers, partners (BB, Staples, etc.) by fulfilling the initially planned orders. Now, to bad they are not doing this with the white 64GB model or 7" model - where parts were begin to pile up with suppliers. Not sure how they are avoiding that one.

    As stated several times, Leo - the king of ***** village. Every HP employee thought it could get no worse than Carly. Well, Leo hit that one out of the park in record. Guy needs to go away... and fast!

    I can't imagine it won't be too long before the shareholder lawsuit is filed. Leo has lost shareholders BILLIONS in a matter of weeks/months. Since he took over, HP stock is down about 40%. That's hard to do on purpose on such short notice. He could have sat in a chair and stared at the wall for the past 8 months and the stock would have been in better shape.

    I'm waiting for article titled "Shareholders Sue HP Over Leo Being A Complete *****"
  8. DRFP's Avatar
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    #8  
    So the fact that an HP VP said they may continue the TP in light of the sales, means nothing?

    After all we know people will pay as much as 300 (Ebay and Amazon)
    I'm not here to criticize the Touchpad but to learn how to make it better.
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  9. Targon's Avatar
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    #9  
    Quote Originally Posted by drfp View Post
    So the fact that an HP VP said they may continue the TP in light of the sales, means nothing?

    After all we know people will pay as much as 300 (Ebay and Amazon)
    Exactly, it means nothing. HP execs have said many things over the past year about WebOS, and very few of these actually happened.
  10. #10  
    Things just cost what they cost. It's not matter of being an Apple ****** or a webOS ******.

    @nokia: In all likelihood, the final run is cheaper than dealing with unused parts and broken contracts with suppliers.

    iPad 2 Carries Bill of Materials of $326.60, IHS iSuppli Teardown Analysis Shows - Teardowns at iSuppli

    HP TouchPad Carries $318 Bill of Materials - Teardowns at iSuppli
  11. cgk
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    #11  
    Quote Originally Posted by drfp View Post
    So the fact that an HP VP said they may continue the TP in light of the sales, means nothing?

    After all we know people will pay as much as 300 (Ebay and Amazon)
    Where did anyone say this? I saw an interview with Bradley that a lot of people thought was about the touchpad but they had to print a correction saying he was talking about the concept of tablets not the touchpad.
  12. Hobbz's Avatar
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    #12  
    I'll toss this out there for consideration....

    I remember one article saying how HP didn't expect this strong of an interest in the fire sale. I wonder that after the discounted TouchPads were flying out the door, they realized they could save money by continuing to manufacture them in order to meet contractual obligations instead of paying suppliers for early termination.

    Had the fire sale not been near as successful, it may have been cheaper for them to pay for early termination. They may have been expecting to sit on this inventory for quite some time. Only the HP lawyers and accountants know the numbers.
    War Eagle!
    beardedspoooon and Rnp like this.
  13. #13  
    HP needs to continue grow the user base if they are going to really consider an OEM strategy for WebOS. Overnight they have become the number 2 tablet company. This means that HP's software developer partners should hopefully grow their business and continue to develop for WebOS instead of abandoning it.
    pgarcia likes this.
  14. #14  
    "He could have sat in a chair and stared at the wall for the past 8 months and the stock would have been in better shape."

    LMAO,...agreed!
  15. #15  
    Quote Originally Posted by Nokia_webOS View Post
    HP obviously gets components much less than what gets published in teardown articles.
    This is absolutely correct. And HP or Apple will never let it slip how large of a discount they are getting for parts. But here's a rough estimate of of what the Touchpad really costs to make (just materials). A quick search for the LG LP097X02-SLAA 9.7" screen got me this site:

    LG LP097X02-SLAA LCD screen,US$49.60 - New LG LP097X02-SLAA LCD screen 9.7 inch LED 1024x768 XGA,www.nbkit.com

    So I can buy one screen for $49.00, which is about 28% less than the iSuppli estimate. And I'm sure that if I ordered say 1M units, the cost per unit would be even less than $49. Let's say conservatively that the screens go for about 30% less than the iSuppli estimate.

    I don't have time to repeat the search for all of the materials that make up the Touchpad, so I'm going to assume that I can find wholesalers that will charge 30% less than what iSuppli estimates for each of the components.

    Grand total of Touchpad materials: $207 or $223 depending on the memory.
  16. #16  
    Quote Originally Posted by alee712 View Post
    Grand total of Touchpad materials: $207 or $223 depending on the memory.
    and add to that R&D and marketing costs, and we are back to t least $300 per unit.
  17. #17  
    Quote Originally Posted by chalx View Post
    and add to that R&D and marketing costs, and we are back to t least $300 per unit.
    no, I don't think so. if you reread my post, you'll see that was being conservative. I'm no pro, but if I can find parts 30% cheaper than iSuppli can, I'm sure HP can do even better. HP is probably breaking even at the 99/149 pricing.
  18. #18  
    Quote Originally Posted by drfp View Post
    its because Apple lies about what it cost them (all of sudden in 2 years a hardware company makes more than M$ who makes software, windows the worlds most used software) then they base the cost of a tablet on that information.

    I'm so tired of Apple Fans posting "can't make a tablet for less than $400" yes if you are Apple , in the real world production costs can be 70% less.
    Right:

    iSuppli: iPad's Actual Cost is $260

    Shhh, remember Apple might not want its fans to know there's another tablet out there...
  19. #19  
    Quote Originally Posted by bobwonderful View Post
    HP needs to continue grow the user base if they are going to really consider an OEM strategy for WebOS. Overnight they have become the number 2 tablet company. This means that HP's software developer partners should hopefully grow their business and continue to develop for WebOS instead of abandoning it.
    Eh, well we now have close to 1 million, is that enough for developers to notice? A distant #2 (behind Apple) is still #2, no matter how it got there
  20. #20  
    Quote Originally Posted by alee712 View Post
    Ö Grand total of Touchpad materials: $207 or $223 depending on the memory.
    Quote Originally Posted by bobwonderful View Post
    HP needs to continue grow the user base if they are going to really consider an OEM strategy for WebOS. Overnight they have become the number 2 tablet company. This means that HP's software developer partners should hopefully grow their business and continue to develop for WebOS instead of abandoning it.
    Trying to calculate or determine the cost of manufacturing the Touchpad, and then using that information to argue that some other course of action either would or would not have made more sense, is just pointless. There are so many factors that are (and should be) MUCH more important to HP than the cost of the Touchpads being sold, and MUCH more important to HP than managing reactions of webOS customers and developers. Thatís just not where HP is focused.

    In its collective mind, the HP Board is already thinking of the PSG as a separate company. We donít know why the HP Board is taking this direction, and we might think they are being stupid, but that doesnít change their direction. The fact remains that the HP Board is not paying any attention to, and apparently no longer cares about, the PSGís products or customer base. Stupid? Perhaps. But, while you know that Todd Bradley cares about the PSG user base, any argument or conclusion or assumption that HP probably will or will not do X, because of users / customers / developers / costs, is just silly. HP is completely changing direction, so all those things that relate to the old direction, PCs and other devices, simply are not relevant.

    What is HP going to do with webOS? We canít possibly know. Trying to answer that question by referring to facts relating to HP's discontinued phone/tablet business, its customer base, its developer base, etc., is like trying to predict the outcome of a NY Yankees game based on how the Giants are doing.
    - Bubba
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