Wednesday, August 31, 2011

Hewlett Packard's TouchPad Tablet Computer Receives a Reprieve


Agreeably surprised by consumers' rabid desire to own one of those TouchPad tablet computers they had earlier declared dead, HP executives recently announced plans to "produce one last run of TouchPads to meet unfulfilled demand."
Fire-sale prices made a bestseller out of the HP TouchPad.

HP cut the price of the tablet from $399 and $499 to $99 the weekend following the company's announcement it was ending its tablet PC business on August 18. The move was part of HP's decision to give up its consumer business and focus instead on the enterprise market.

The fire sale created an online feeding frenzy, with consumers seeking to get their hands on one or more of those tablets set to become a piece of IT history or consumer electronics foible.
HP loses money with every TouchPad it sells. 

HP is set to lose money on every final-production-run TouchPad. HIS iSuppli's estimates it costs $318 to produce a 32GB version of the tablet computer.

I wonder why HP would want to have this "final run?" Is the company doing it just to spite Apple?

Hmm. There must be a business model somewhere here.


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