TouchPad fire sale continues, industry responds to HP's news

By on August 22, 2011, 5:46 PM

HP has been the subject of many headlines over the last few days as folks attempt to unravel the many questions surrounding the mega-vendor's decision to halt its webOS projects and potentially exit the PC market. The former initiative is well underway as HP immediately began dumping its existing TouchPad supply, offering the 16GB and 32GB tablets for only $99 and $149. The fire sale will continue this week via retailers and, if nothing else, has allowed the previously ill-received device to enjoy a moment in the spotlight.

According to Amazon's statistics, the 16GB iteration has become the e-tailer's top selling electronic, followed by the 32GB unit. Unfortunately, finding the deeply discounted units has become extremely difficult and Amazon itself doesn't seem to be offering any devices. Instead, various third-party merchants -- who presumably purchased the discounted tablets in bulk -- are reselling the Touchpad with a markup. The 16GB model is fetching $229.99 all the way north of $400, while the 32GB device starts at $399 with free shipping.

The decision to terminate its mobile ventures will reportedly have a strong impact on HP's Taiwanese hardware production partners. According to inside sources cited by DigiTimes, the company's webOS partners will clear existing inventories and plan to cease sales as soon as possible. HP's upcoming webOS smartphones were being produced by Foxconn and Compal Communications, while the TouchPad was being assembled by Invetec. All three outfits will be forced to adjust their production lines in light of recent events.

Although the move is still undecided, some analysts are concerned about the consequences of HP departing from the PC business. For instance, it's suggested that Samsung is the most likely to acquire HP's PC business because other players lack the funds and supposedly have conflicting strategies. HP's PC business accounted for $40.7 billion in revenue in the last fiscal year, so it surely won't be easy to sell. A Samsung acquisition would affect the supply chain as the manufacturer tends to produce things in-house.

Again, HP hasn't confirmed that it will exit the PC market, only that it's contemplating the possibility. That said, such a large, publicly traded brand simply wouldn't announce something of that magnitude if it didn't already have a battle plan. Following only one day after the announcement, HP's stock price sank by 20%. Regardless of its true intentions, Michael Dell has seized the opportunity to sling some mud at his longtime adversary in a four-day escapade on Twitter. HP has responded to at least one of Dell's jabs.




User Comments: 17

Got something to say? Post a comment
gwailo247, TechSpot Chancellor, said:

Meh. HP seems to have royally intercoursed this whole situation from buying Palm to this day. And all and all, they had a really good product on their hands, they just kept making tons of mistakes with it.

Guest said:

I managed to grab one from Amazon late Sunday at the $99 price point, there were only 4 left.

Raswan Raswan said:

Guest said:

I managed to grab one from Amazon late Sunday at the $99 price point, there were only 4 left.

Should be a good toy to play with. Enjoy it. Kinda wished I'd picked one up.

p51d007 said:

100 to 150 bucks is a GREAT price point. Maybe they can get the price down on every brand one day.

Trillionsin Trillionsin said:

I know someone who got the $99 deal. I am not jealous.

Tekkaraiden Tekkaraiden said:

Sold out where I live with in the first few hours of stores being open on Saturday.

Wendig0 Wendig0, TechSpot Paladin, said:

I'm still keeping my eyes open for a 16gb model. From what I understand there are still a lot of touchpads up for grabs.

lawfer, TechSpot Paladin, said:

While I agree the price is quite tempting, the truth is these products have bee discontinued; any bugs or requested features will never be fixed/implemented. Personally, I would never invest on a dead product.

Although, if somebody sold it to me for $50, I wouldn't hesitate much.

Staff
Matthew Matthew, TechSpot Staff, said:

I should have mentioned this in the post, but people are working to get Android running on the TouchPad: http://www.touch-droid.com/

Wendig0 Wendig0, TechSpot Paladin, said:

Matthew said:

I should have mentioned this in the post, but people are working to get Android running on the TouchPad: http://www.touch-droid.com/

I read about that as well. Ubuntu also runs on the Touchpad, in a limited capacity at the moment, but it still works.

matrix86 matrix86 said:

lawfer said:

While I agree the price is quite tempting, the truth is these products have bee discontinued; any bugs or requested features will never be fixed/implemented. Personally, I would never invest on a dead product.

Although, if somebody sold it to me for $50, I wouldn't hesitate much.

+1 on this. I want one of these so bad, but buying a product that will have no support? No thanks. I've got better things to waste my money on...like the hopeful new nexus phone or one of the other Android 4.0 phones :P

PinothyJ said:

gwailo247 said:

Meh. HP seems to have royally intercoursed this whole situation from buying Palm to this day. And all and all, they had a really good product on their hands, they just kept making tons of mistakes with it.

You do realise "intercourse" means communication between two people, do you not?

:/...

Guest said:

I think that was the point!

Guest said:

I think that the reaction to the fire sale shows what HP and most other tablet manufacturers are missing. Most of us want a a quality tablet at an affordable price. Maybe HP should reverse their decision to pull out of the market and instead sell it at a low price and make their money by taking a cut on apps and maybe charging for WebOS upgrades. Just a thought...

dedparrot said:

I can't seem to justify the purchase even at £90

tipstir tipstir, TS Ambassador, said:

Cheap deals drive people to buy more than one. Considering how much the unit sold for. Some thing Android will work on this, but you forget to think will the drivers work? The craze is ended well for now!

coolazeem said:

This awful touchpad drawing is of the rare WHITE one....It can also be viewed as a drawing of a 32GB Touchpad! Current Bid is US $90,100.00...ROFL!!!!

http://r.ebay.com/Xb8mYu

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.