Can someone tell me what HP is doing?

Reuters is reporting that:

Hewlett Packard Co plans to crank out “one last run” of TouchPads, days after declaring it will kill off a line of tablets that failed to challenge Apple Inc’s command of the booming market.

A day after the chief of HP’s personal devices division told Reuters the TouchPad might get a second lease on life, HP announced a temporary about-face on the gadget after being “pleasantly surprised” by the outsized demand generated by a weekend fire-sale.

HP slashed the price of its tablet to $99 from $399 and $499 the weekend after announcing the TouchPad’s demise on August 18, part of a raft of decisions intended to move HP away from the consumer and focus on enterprise clientele.

That ignited an online frenzy and long lines at retailers as bargain-hunters chased down a gadget that had been on store shelves just six weeks.

“The speed at which it disappeared from inventory has been stunning,” the company said. “We have decided to produce one last run of TouchPads to meet unfulfilled demand.”

HP may lose money on every TouchPad in its final production run. According to IHS iSuppli’s preliminary estimates, the 32GB version carries a bill of materials of $318.

“We don’t know exactly when these units will be available or how many we’ll get, and we can’t promise we’ll have enough for everyone. We do know that it will be at least a few weeks before you can purchase,” HP said in a blogpost.

Hmm, let me see..

You slashed the price by 75 to 80% and people started buying your product again. Now you act shocked and pleasantly surprised?

Sounds like this is a “hold on just a second” moment.

Hey HP, let me explain it to you. TABLETS are profitable but you have to PRICE THEM PROPERLY.

You are not Apple – Your Touchpad was never going to sell at Apple prices. You are HP and at $99 to $199, you have a winner.

Suck up your mistake, come back to the market and re-introduce the market at the proper price point.

Yes, you’ll lose some money short term but if you play your cards right, you’ll make it up in volume and scale as parts become cheaper.

*sigh*.. I don’t know why I bother…

Note to Microsoft – Now you know the price point for Windows 8 Tablets – I told you – You’re welcome.

About the Author

Onuora Amobi is the Founder and VP of Digital Marketing at Learn About The Web Inc. Onuora has more than a decade of information security, project management and management consulting experience. He has specialized in the management and deployment of large scale ERP client/server systems.

In addition to being a former Microsoft MVP and the founder and editor of EyeOnWindows.com, he is the CEO of a Pasadena based online marketing education startup - Learn About The Web Inc. (www.learnabouttheweb.com) and The Redmond Cloud (https://www.theredmondcloud.com).

Related Posts

Microsoft announced today that it will offer a free Touch or Type cover along with the...

The Acer Iconia W3 tablet, set for release early next month is one of the most anticipated...

The trend of price cuts on Windows RT tablets continues. It was just a month or so ago that...

  • Rodney Jenkins

    Whatever dude! I’m just hoping to get a touchpad myself..

  • krustybaguette

    I signed up so I can download the Win8 beta version because I have an HP Slate500 which is just about useless as a tablet with Win7 Professional. I bought a wireless keyboard/mouse combination but that defeats the whole idea of a tablet. I’m hoping Win8 will bring some useability to this otherwise useless piece of hardware.

    I spent best part of an hour yesterday “chatting” with the WebOS customer service team. I had hoped to get an answer about installing WebOS on my Slate. After all, when HP took over Palm they announced that in the future ALL HP products would include WebOS as a second OS.

  • Penta2100

    I didn’t even know this was a patent