
05/12/2015, 02:12 PM
#1
So last night I was doing some thinking and research about HP during the Leo Apotheker era and I decided to do some math (what is wrong with me!? ) Let's assume that all of the Touchpads sold were 16GB models. Of course that was not the case, but I could not find an exact number of how much of each model was sold. The 16GB model sold for $499.99. It was estimated that the Touchpad had about $296.15 worth of components inside with a $10 cost to assemble. This brings the total to about $306.15. Let's say there was about $100 added to that cost for other things (taxes, shipping...) which would bring the total to $406.15. The Touchpad sold for $499.99, and subtracting this number with the approximate cost of each Touchpad would mean that HP made about $93.84 per Touchpad. HP sold 25,000 Touchpads initially, and Harvey Norman sold 1200. If we multiply the cost HP made per Touchpad to the amount sold, that would mean HP made $2,458,608 initially. Let's say that 10% of this money was research and development costs. This would leave HP with $2,212,747.20 initially made on the Touchpad. It was estimated that HP sold about 903,354 Touchpads in total. With the price drop to $99 for the 16GB model, HP sold about 877,154 Touchpads during the fire sale. Let's take the $406.15 for the cost per Touchpad and subtract $99. HP lost $307.15 per Touchpad. If we multiply the amount lost by the amount sold, HP totally lost $269,417,851.10 during the fire sale. If we add the amount made and the amount lost, HP totally lost $267,205,103.90 approximately due to the Touchpad fire sale. Please feel free to correct my math if it needs it.


