I wonder if people understand they are buying a discontinued product that will see no future development. Is that being made clear by the retailers?
HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
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Re: HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
#22I wonder if people understand they are buying a discontinued product that will see no future development. Is that being made clear by the retailers?
Re: HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
#23Earlier quoted context omitted.
The parts alone cost $328[1] I think it's safe to say that your pricing plan would have them losing $100+ per device. So selling a million Touchpads (which wouldn't even be that great) has them losing at least 100 million. And who knows if they would have even sold that many at $299. There are Android tablets priced at what you're suggesting, but I doubt their components cost as much, and I don't think their sales ar…
Most of the Android ones I've seen at that price are pretty abysmal compared to webOS. Personal view, obviously, but webOS in general is a nicer experience. So... they paid $1.2billion for a company, but another $100 million (I suspect the delta would have been less) is too much to put in to an investment? If you actually had a million of those devices sold even within 6 months, that'd be a big momentum for a third p…
Re: HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
#24I wonder if people understand they are buying a discontinued product that will see no future development. Is that being made clear by the retailers?
Re: HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
#25I wonder if people understand they are buying a discontinued product that will see no future development. Is that being made clear by the retailers?
I don't think anyone who actually managed to snag one was under any illusion about what the device was or wasn't. You had to be on the top of your game to locate a device; it's not like you stumbled into Costco and went "Oh, that looks nice." It was a process of hours of researching, phone calls, queuing, refreshing...
Re: HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
#26The Nook Color is an example of a $250 tablet with less functionality than an iPad. Though Barnes and Noble has not released any official sales figures, it is easily outselling all other tablets except for the iPad. This seems supportive of the authors assertions and I'm surprised this information was not included in the post. http://www.businesswire.com/news/home/20110708005437/en/Medi... And the following is the fi…
Re: HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
#27The Nook Color is an example of a $250 tablet with less functionality than an iPad. Though Barnes and Noble has not released any official sales figures, it is easily outselling all other tablets except for the iPad. This seems supportive of the authors assertions and I'm surprised this information was not included in the post. http://www.businesswire.com/news/home/20110708005437/en/Medi... And the following is the fi…
Re: HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
#28Earlier quoted context omitted.
Not crazy at all. The rule in hardware is price it to sell, regardless of profit margins or lack thereof. Then — if you get sales traction — figure out how to drive your costs down through economies of scale, substitution of cheaper components, design simplification, etc.
You have to have very deep pockets, and the ability to pacify your shareholders, to absorb these types of losses. I think people are really underestimating how much HP has lost here.
Re: HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
#29I've seen this written by a couple of different people over the weekend and it terrifies me every time. It's as if the author is completely divorced from reality. As if "just price it lower" is some kind of poignant observation that no one thought of. As if it were easy to compete on price when Apple is buying parts in quantities you couldn't hope to match. I'm always critical of people who make the argument that "fr…
I think there's room in the market for an inexpensive web-only tablet. Before the Chromebook's came out, I had assumed that was what Chrome OS was for -- a real stripped down inexpensive tablet with almost no local flash, a small amount of RAM, etc. Most tablets right now are attempting to match the iPad in every way: capability, size, weight, etc. So, of course, they're in the same price range.
If you could put together a $200 tablet, Negroponte would be declaring victory in the press, rather than quietly rolling back the date of the XO-3 over and over again.
Re: HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
#30I've seen this written by a couple of different people over the weekend and it terrifies me every time. It's as if the author is completely divorced from reality. As if "just price it lower" is some kind of poignant observation that no one thought of. As if it were easy to compete on price when Apple is buying parts in quantities you couldn't hope to match. I'm always critical of people who make the argument that "fr…
Ultimately, price drives decisions. My neighbor doesn't understand why he can't sell his house. The reason is simple -- he's asking 25% more than the market price without giving people a compelling reason to spend the money. The Touchpad is telling you something about the iPad market (there is no such thing as a "tablet" market). People are willing to line up to spend $500 on an iPad. But they are also willing to spe…
Contrast this with Google, where I don't think even "lots of ads" is enough of a per-customer-value proposition to enable them to take a couple hundred off a tablet's price very easily.