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  1. #21  
    How about the Amazon model where they sell the Kindle at a loss and then make-it up on the soft goods like ebooks, software, movies, music etc.

    Quote Originally Posted by tholap View Post
    Companies are not interested in selling. They are interested in making a profit.
    Selling 100 million devices is not a good thing if you make a loss on every single one of them - selling more makes it worse.

    The TP costs HP roughly the upper end of your range to make. And that's without retail getting their sizable cut.

    I assume you expect the TP2 to have noticable technical improvements. Even if we assume better hardware at same cost being available this will prevent any cost reductions.

    To be profitable at the prices you'd like them to sell at the TP2 would have to be of less quality and less powerful (using the cheapest oldest parts available in volume) than the TP. And even then profit might be too small.

    As long as Moores Law holds hardware costs might get to the point where a tablet can be done profitably at that price point and still do what you want it to do. But that's probably a few years in the future.
  2. #22  
    Quote Originally Posted by OldSkoolVWLover View Post
    Good luck brother, I know you just keep barely missing on these deals.
    It shows one of them shipped! Think my day has come.. Thx for the support, lol.
  3. #23  
    Quote Originally Posted by volcom45 View Post
    It shows one of them shipped! Think my day has come.. Thx for the support, lol.
    Was starting to feel bad everything I was tweeting you was too late. I still need to pull out my backup 16 gig and get it setup... plus other things, not trying to take this OT though.
    I love physical keyboards... but there is two devices that would make me consider a slab, one is something running a full version of Open webOS. The other is an iPhone!!!! HA HA just kidding (about the iPhone that is)...
    Volcom45 likes this.
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       #24  
    Quote Originally Posted by tholap View Post
    Companies are not interested in selling. They are interested in making a profit.
    Selling 100 million devices is not a good thing if you make a loss on every single one of them - selling more makes it worse.

    The TP costs HP roughly the upper end of your range to make. And that's without retail getting their sizable cut.

    I assume you expect the TP2 to have noticable technical improvements. Even if we assume better hardware at same cost being available this will prevent any cost reductions.

    To be profitable at the prices you'd like them to sell at the TP2 would have to be of less quality and less powerful (using the cheapest oldest parts available in volume) than the TP. And even then profit might be too small.

    As long as Moores Law holds hardware costs might get to the point where a tablet can be done profitably at that price point and still do what you want it to do. But that's probably a few years in the future.
    If the devices are already made then selling more lessens the impact. Keeping them under tarps in a warehouse does nothing. Buying parts and manufacturing of course wouldn't make sense. Of course it was already mentioned accessories, warranties and apps make the money.

    You don't think this tigerdirect stock was from building more right? How many people have searched the websites or gone to the stores of HP's, office depot, staples, bestbuy and tigerdirect? Time releasing these will generate a ton of traffic which is $$$$$$$.

    Also, and this is the part I am not solid on but if the parts were already purchased and all that had to be done in the factory which still exists of course is to put them together then why wouldn't you? You'd recoupe a little of the lost profit and as mentioned each tablet can generate more revenue over its lifetime.

    TP2 won't be 149/99 of course but it should be more solid more responsive just better. TP1 is the stepping stone or more likely the gateway drug into further webOS or HP tablet business if they choose to risk it again.
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