You surely recall how computer maker Hewlett-Packard announced earlier this month it would exit the low-margin PC business, stop selling smartphones and tablets and sell out or license the webOS operating business. Well, less than two weeks later HP’s PC chief Todd Bradley tells Reuters that the TouchPad could make a come back:
Bradley said the company could resurrect HP’s short-lived TouchPad tablet computer, which was introduced on July 1 before being terminated only about six weeks later. ‘Tablet computing is a segment of the market that’s relevant, absolutely,’ Bradley said.
We’re not sure quite what to think of it. Was the whole “we’re killing the TouchPad” thing just a marketing ploy? Perhaps the news that Samsung wants to become the next HP and whispers that they are “considering purchasing webOS” prompted top dogs at Hewlett-Packard to second-guess CEO’s decision to focus on software and services instead on cool gadgets? Why else would Bradley tell Reuters that selling the PC division to a rival like Acer or Lenovo is “not a desirable alternative”?
Perhaps as interesting, HP claims to plan on building more TouchPads, they reported today.
Is $99 the new $499? Well, no. A tier one company can’t make anything close to the TouchPad and hope to break even at $99 yet. But if anything, the $499 TouchPad that was plagued with a sell-through rate of just ten percent versus the $99 TouchPad that is seemingly flying off the shelves reinforces the notion that price matters in this game – perhaps more than any other feature. Consumers clearly appreciated iPad’s aggressive $499 price point. For a gadget you could do without in your life, price remains the crucial factor. For example…
…a market survey by Retrevo found out that would-be tablet buyers would consider a hypothetical Amazon tablet if it cost less than $250. Moreover, more than two-thirds would consider buying an Android tablet with similar features if it cost less than $250. That said, is it really that surprising that Amazon is said to be pricing its device “hundreds less” compared to iPad and lose money on hardware, an art form they perfected with the Kindle?