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HP to produce one more batch of Touchpads

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Re: HP to produce one more batch of Touchpads

#51

Post by ChrisLTD »

corin_ wrote: post #29

While selling at a loss to make profit on software doesn't look feasible in this market, here's an alternative suggestion, though I'm not sure if this is feasible either - just more likely than the first option. Sell loads at a loss, I mean really loads. Announce that the platform isn't dead after all. Use the fact that so many people have the devices to bring in app developers, make it a more desirable platform. The…

The model could work like the console market. Sony and Microsoft both initially sold their core hardware at a loss with the hope of making up the difference in game license fees and big margins on peripherals.

However, it'd be a pretty tall order to get $200+ dollars per person out the HP App Store especially when Apple has pushed the expected price down to $1 for most apps. Also, with a device price so low I'd have to think you're already targeting the cheapskate market to begin with, so there is no reason to think these particular customers would be willing to buy tons of apps.

Clearly you'd prefer to be Nintendo and sell the hardware for a profit while also collecting generous license fees.

Re: HP to produce one more batch of Touchpads

#52

Post by abbottry »

When the announced this, I told my friends:

They will drop the price, and every person that owns an iPad will buy one, they might lose their ass on the hardware, but what happens when they release a really nice app store and they have a zillion people now with their product in hand?

I know it sounds far fetched, but.. its working, no? All they need now is the app store (is it already created?)

Re: HP to produce one more batch of Touchpads

#53

Post by lallysingh »

ChrisLTD wrote: post #51
corin_ wrote: post #29

While selling at a loss to make profit on software doesn't look feasible in this market, here's an alternative suggestion, though I'm not sure if this is feasible either - just more likely than the first option. Sell loads at a loss, I mean really loads. Announce that the platform isn't dead after all. Use the fact that so many people have the devices to bring in app developers, make it a more desirable platform. The…

The model could work like the console market. Sony and Microsoft both initially sold their core hardware at a loss with the hope of making up the difference in game license fees and big margins on peripherals. However, it'd be a pretty tall order to get $200+ dollars per person out the HP App Store especially when Apple has pushed the expected price down to $1 for most apps. Also, with a device price so low I'd have…

Actually I bet Apple could pull that off, if they charged more overhead for iTunes (audio & video). $199 iPad with included Apple TV -- might work.

Re: HP to produce one more batch of Touchpads

#54

Post by w33ble »

mikeknoop wrote: post #3

Did HP accidentally just find the best way to break into the tablet market? Sell hardware at a loss and make it up on software. Console makers have been doing it for some time now.

Even without selling apps, building a huge customer base and finally attracting developers to write apps for the platform is hugely beneficial. If they have a large ecosystem with millions of users and thousands of apps, it'll be much easier for them to license the OS to other OEMs. Either may actually be their plan, but I suspect it was a plan made after the fact; otherwise they wouldn't have killed the Pre3 before the US launch.

Re: HP to produce one more batch of Touchpads

#55

Post by ai_mateu »

kingkawn wrote: post #31

If labor and shipping per unit costs $50 (totally made up), then $99 ain't lookin so bad

No need to make up wild guesses. iSuppli says the TouchPad bill of materials is $318. http://www.isuppli.com/Teardowns/News/Pages/HP-TouchPad-Carr...

Even if you think they're off by 10%, $99 would never work.

Re: HP to produce one more batch of Touchpads

#56

Post by w33ble »

marcf wrote: post #34
toblender wrote: post #17

Looks to me like HP is fattening up WebOS for a resell.

I share your thoughts. It makes a lot of sense from this perspective as WebOS could be worth a billion or more so what is a loss of a few million on ensuring a good sale.

Same. Not sure they want the resale though, I think they rather get some manufacturers on board, license the OS and sell support. Seems to jive better with their current stated focus of software.

Re: HP to produce one more batch of Touchpads

#57

Post by w33ble »

raganwald wrote: post #46
ddw wrote: post #43

Forget about HP for a minute. Are there any devs out there that are considering creating a WebOS app because of this new influx of users? I'm genuinely interested...perhaps it would be worth it.

Ok, I’ll pretend to be a VC. So you make a WebOS game/app. What kind of users do you expect to have? A whole bunch of cheapos who bought the tablet because it was $99. And how much do you think those people will pay for your app? Next question. Word of mouth. If those people like your app, they’ll tell friends. Will those friends have WebOS tablets? Let’s talk about the lifetime value of your code base. How long can…

You're right, but I don't think OP is alone in thinking they way he does. Creating an app in pure HTML/CSS/JS and having it actaully run quickly is an interesting idea, and one that makes WebOS unique. The problem before was that there was almost nobody using the OS, but that's changed a bit now. Is it worth doing? Time will tell, but if you can bang out something quickly and not spend a lot of time/money getting it done, it might be worth a shot now.

Re: HP to produce one more batch of Touchpads

#59

Post by jackson71 »

raganwald wrote: post #46
ddw wrote: post #43

Forget about HP for a minute. Are there any devs out there that are considering creating a WebOS app because of this new influx of users? I'm genuinely interested...perhaps it would be worth it.

Ok, I’ll pretend to be a VC. So you make a WebOS game/app. What kind of users do you expect to have? A whole bunch of cheapos who bought the tablet because it was $99. And how much do you think those people will pay for your app? Next question. Word of mouth. If those people like your app, they’ll tell friends. Will those friends have WebOS tablets? Let’s talk about the lifetime value of your code base. How long can…

Anecdotally, webOS devs, given the low threshold of competition and influx of new Touchpad owners, are doing pretty fantastic sales right now. Good for a quick return at least. Since HP's also being charitable and giving away 6-packs of apps for free (and paying the dev for each one at full regular 70% share), a couple of those devs picked found themselves 5-figures richer overnight. No idea how long they intend to keep doing it, but it seems ongoing for now.

Good platform for quick wins. Mid-term and longer, it'll largely depend on whether webOS finds new hardware with which to keep it alive.

Re: HP to produce one more batch of Touchpads

#60

Post by bradly »

ddw wrote: post #43

Forget about HP for a minute. Are there any devs out there that are considering creating a WebOS app because of this new influx of users? I'm genuinely interested...perhaps it would be worth it.

I have a developer device and have been following the threads in the WebOS developer forums and developers are pretty frustrated. Lots of people have purchased developer devices in the past 1-2 months and paid much more than the current fire sale prices.

Also, registered developers are having to hunt to find retailers with existing $99 TouchPads, instead of HP giving WebOS developers early access to buying a device. If developers can't even get a development device when they want one, there isn't much hope for a diverse App Store

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