Greg's Bite: HP Touch Pad "Like Nothing Else"?
TweetFollow Us on Twitter

Greg's Bite: HP Touch Pad "Like Nothing Else"?

By Greg Mills

The illustration is an exploded view of the HP TouchPad.

For those developers thinking about developing apps for the Palm OS, which runs on HP's TouchPad, think a bit longer. Sales figures just are awful on HP's latest iPad killer that isn't. If you thought the Microsoft Kin cell phone was a success, you will really love the HP TouchPad. HP's slogan for the TouchPad, "Like Nothing Else," can sarcastically be interpreted by consumers as "nothing like an Apple iPad."

The Wall Street Journal's "All Things Digital" reports that of the 270,000 HP TouchPads Best Buy ordered, they have sold less than 25,000. Internal reports are that the 25,000 sold number does not include TouchPads that have been sold but returned for various reasons. (See http://allthingsd.com/20110816/ouchpad-best-buy-sitting-on-a-pile-of-uns... .)

Similar stories of dismal TouchPad sales from Wal-mart, Frys and numerous other electronics retailers confirm the HP TouchPad appears to be a flop. A very expensive and embarrassing flop for HP, which is reporting quarterly sales after the markets close today. If the Palm-based touch screen tablet HP calls TouchPad fails, what of Palm? Unless HP sells smartphones that run the Palm OS, the purchase of Palm was a complete waste of US$1.2 billion.

According to the ATD story, Best Buy wants to return the mountain of unsalable TouchPads and is refusing to pay for them. Retailers have contracts that protect them from albatrosses like Microsoft Kin Phones and HP TouchPads. "Loading the sales channels" with merchandise is great when the products go out and agonizing when the sewer backs up with unsalable merchandise that cost a fortune to manufacture.

The teardown of the HP TouchPad by iSupply indicates that the baseline TouchPad costs HP roughly $306 to manufacture (see http://allthingsd.com/20110703/hps-touchpad-teardown-its-deepest-secrets...). This makes the numbers more meaningful.

If the newly discounted $399 retail price holds (and it may not hold) and Best Buy and the other electronics stores make a 40% markup or about $160 per TouchPad, HP will eat roughly $60 for each TouchPad sold and the full $306 for each TouchPad they don't ever sell.

HP has cut the price to encourage sales to little effect, according to sources in the industry. A store named Woot dropped the sales price of the entry level TouchPad $120 and only sold 612 units. Staples virtually gave HP TouchPads away dropping $200 off the original price and still couldn't move them. Eventually, the actual market price will be reached, but it looks like pricing HP TouchPads low enough to sell will mean HP loses money selling them at less than the cost to make them. Ouch, looks like more blood in the water for the iPad.

HP's biggest problem is that unlike Apple, they don't have a well developed source of latent income from TouchPads they sell. Apple sells tons of iPads and knows they will sell apps that will be loaded onto that iPad for years to come and Apple pockets 30% of the long term income. Apple will also sell music, videos and books to that iPad empowered consumer.

What will HP sell to the owners of a TouchPad? Expensive ink cartridges? Should HP stem the flow of red ink and discontinue the TouchPad line of tablets, consumers will be stuck with expensive junk and have the lesson reinforced that buying into a platform that fails is a serious mistake. This means that the other marginal platforms will also see skeptical consumers who don't want to be stuck with junk. If you really want an iPad, buy an iPad, not a PlayBook or some other pretender.

In desperation, HP may bundle the TouchPad with laptops and hope to clear the clogged channel with back to school sales. This is hardly the vision HP had for its answer to Apple's touch screen magic. This also supports my observation that there isn't room in the market place for so many touch screen platforms. Though the Palm OS has merit, Android and the Apple iOS have sucked the air out of the room for also-ran platforms like Palm and RIMs proprietary OS. The jury is still out for Microsoft's Mobile OS that might surge if Android is fragmented by Apple.

Understanding the marketplace has no room for so many platforms is why the CEO of Nokia threw up his hands and stopped wasting money on its in-house OS despite years of research and countless millions of dollars that are now wasted. Going to a platform that is going to be around when it all shakes out is the intention of both consumers and savvy developers alike.

That is Greg's Bite out of HP's hide for today.

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Capture One 11.0.1.40 - RAW workflow sof...
Capture One is a professional RAW converter offering you ultimate image quality with accurate colors and incredible detail from more than 400 high-end cameras -- straight out of the box. It offers... Read more
Capture One 11.0.1.40 - RAW workflow sof...
Capture One is a professional RAW converter offering you ultimate image quality with accurate colors and incredible detail from more than 400 high-end cameras -- straight out of the box. It offers... Read more
GraphicConverter 10.5.4 - $39.95
GraphicConverter is an all-purpose image-editing program that can import 200 different graphic-based formats, edit the image, and export it to any of 80 available file formats. The high-end editing... Read more
Dash 4.1.3 - Instant search and offline...
Dash is an API documentation browser and code snippet manager. Dash helps you store snippets of code, as well as instantly search and browse documentation for almost any API you might use (for a full... Read more
Microsoft OneNote 16.9 - Free digital no...
OneNote is your very own digital notebook. With OneNote, you can capture that flash of genius, that moment of inspiration, or that list of errands that's too important to forget. Whether you're at... Read more
DEVONthink Pro 2.9.17 - Knowledge base,...
Save 10% with our exclusive coupon code: MACUPDATE10 DEVONthink Pro is your essential assistant for today's world, where almost everything is digital. From shopping receipts to important research... Read more
OmniGraffle 7.6 - Create diagrams, flow...
OmniGraffle helps you draw beautiful diagrams, family trees, flow charts, org charts, layouts, and (mathematically speaking) any other directed or non-directed graphs. We've had people use Graffle to... Read more
iFinance 4.3.7 - Comprehensively manage...
iFinance allows you to keep track of your income and spending -- from your lunchbreak coffee to your new car -- in the most convenient and fastest way. Clearly arranged transaction lists of all your... Read more
Opera 50.0.2762.58 - High-performance We...
Opera is a fast and secure browser trusted by millions of users. With the intuitive interface, Speed Dial and visual bookmarks for organizing favorite sites, news feature with fresh, relevant content... Read more
Microsoft Office 2016 16.9 - Popular pro...
Microsoft Office 2016 - Unmistakably Office, designed for Mac. The new versions of Word, Excel, PowerPoint, Outlook and OneNote provide the best of both worlds for Mac users - the familiar Office... Read more

Latest Forum Discussions

See All

Around the Empire: What have you missed...
Around this time every week we're going to have a look at the comings and goings on the other sites in Steel Media's pocket-gaming empire. We'll round up the very best content you might have missed, so you're always going to be up to date with the... | Read more »
Everything about Hero Academy 2: Part 4...
In this part of our Hero Academy 2 guide, we're going to have a look at some of the tactics you're going to need to learn if you want to rise up the ranks. We're going to start off slow, then get more advanced in the next section. [Read more] | Read more »
All the best games on sale for iPhone an...
Another week has flown by. Sometimes it feels like the only truly unstoppable thing is time. Time will make dust of us all. But before it does, we should probably play as many awesome mobile videogames as we can. Am I right, or am I right? [Read... | Read more »
The 7 best games that came out for iPhon...
Well, it's that time of the week. You know what I mean. You know exactly what I mean. It's the time of the week when we take a look at the best games that have landed on the App Store over the past seven days. And there are some real doozies here... | Read more »
Popular MMO Strategy game Lords Mobile i...
Delve into the crowded halls of the Play Store and you’ll find mobile fantasy strategy MMOs-a-plenty. One that’s kicking off the new year in style however is IGG’s Lords Mobile, which has beaten out the fierce competition to receive Google Play’s... | Read more »
Blocky Racing is a funky and fresh new k...
Blocky Racing has zoomed onto the App Store and Google Play this week, bringing with it plenty of classic kart racing shenanigans that will take you straight back to your childhood. If you’ve found yourself hooked on games like Mario Kart or Crash... | Read more »
Cytus II (Games)
Cytus II 1.0.1 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.1 (iTunes) Description: "Cytus II" is a music rhythm game created by Rayark Games. It's our fourth rhythm game title, following the footsteps of three... | Read more »
JYDGE (Games)
JYDGE 1.0.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.0 (iTunes) Description: Build your JYDGE. Enter Edenbyrg. Get out alive. JYDGE is a lawful but awful roguehate top-down shooter where you get to build your... | Read more »
Tako Bubble guide - Tips and Tricks to S...
Tako Bubble is a pretty simple and fun puzzler, but the game can get downright devious with its puzzle design. If you insist on not paying for the game and want to manage your lives appropriately, check out these tips so you can avoid getting... | Read more »
Everything about Hero Academy 2 - The co...
It's fair to say we've spent a good deal of time on Hero Academy 2. So much so, that we think we're probably in a really good place to give you some advice about how to get the most out of the game. And in this guide, that's exactly what you're... | Read more »

Price Scanner via MacPrices.net

Deals on clearance 15″ Apple MacBook Pros wit...
B&H Photo has clearance 2016 15″ MacBook Pros available for up to $800 off original MSRP. Shipping is free, and B&H charges NY & NJ sales tax only: – 15″ 2.7GHz Touch Bar MacBook Pro... Read more
Apple restocked Certified Refurbished 13″ Mac...
Apple has restocked a full line of Certified Refurbished 2017 13″ MacBook Airs starting at $849. An Apple one-year warranty is included with each MacBook, and shipping is free: – 13″ 1.8GHz/8GB/128GB... Read more
How to find the lowest prices on 2017 Apple M...
Apple has Certified Refurbished 13″ and 15″ 2017 MacBook Pros available for $200 to $420 off the cost of new models. Apple’s refurbished prices are the lowest available for each model from any... Read more
The lowest prices anywhere on Apple 12″ MacBo...
Apple has Certified Refurbished 2017 12″ Retina MacBooks available for $200-$240 off the cost of new models. Apple will include a standard one-year warranty with each MacBook, and shipping is free.... Read more
Apple now offering a full line of Certified R...
Apple is now offering Certified Refurbished 2017 10″ and 12″ iPad Pros for $100-$190 off MSRP, depending on the model. An Apple one-year warranty is included with each model, and shipping is free: –... Read more
27″ iMacs on sale for $100-$130 off MSRP, pay...
B&H Photo has 27″ iMacs on sale for $100-$130 off MSRP. Shipping is free, and B&H charges sales tax for NY & NJ residents only: – 27″ 3.8GHz iMac (MNED2LL/A): $2199 $100 off MSRP – 27″ 3.... Read more
2.8GHz Mac mini on sale for $899, $100 off MS...
B&H Photo has the 2.8GHz Mac mini (model number MGEQ2LL/A) on sale for $899 including free shipping plus NY & NJ sales tax only. Their price is $100 off MSRP. Read more
Apple offers Certified Refurbished iPad minis...
Apple has Certified Refurbished 128GB iPad minis available today for $339 including free shipping. Apple’s standard one-year warranty is included. Their price is $60 off MSRP. Read more
Amazon offers 13″ 256GB MacBook Air for $1049...
Amazon has the 13″ 1.8GHz/256B #Apple #MacBook Air on sale today for $150 off MSRP including free shipping: – 13″ 1.8GHz/256GB MacBook Air (MQD42LL/A): $1049.99, $150 off MSRP Read more
9.7-inch 2017 WiFi iPads on sale starting at...
B&H Photo has 9.7″ 2017 WiFi #Apple #iPads on sale for $30 off MSRP for a limited time. Shipping is free, and pay sales tax in NY & NJ only: – 32GB iPad WiFi: $299, $30 off – 128GB iPad WiFi... Read more

Jobs Board

*Apple* Retail - Multiple Positions - Apple,...
Job Description:SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Data Center Site Selection and Strat...
# Apple Data Center Site Selection and Strategy Research Analyst Job Number: 83708609 Santa Clara Valley, California, United States Posted: 18-Jan-2018 Weekly Hours: Read more
Security Engineering Coordinator, *Apple* R...
# Security Engineering Coordinator, Apple Retail Job Number: 113237456 Santa Clara Valley, California, United States Posted: 18-Jan-2018 Weekly Hours: 40.00 **Job Read more
Firmware Engineer - *Apple* Accessories - A...
# Firmware Engineer - Apple Accessories Job Number: 113422485 Santa Clara Valley, California, United States Posted: 18-Jan-2018 Weekly Hours: 40.00 **Job Summary** Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.