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

calibre 2.17 - Complete e-library manage...
Calibre is a complete e-book library manager. Organize your collection, convert your books to multiple formats, and sync with all of your devices. Let Calibre be your multi-tasking digital librarian... Read more
OmniGraffle Pro 6.1.2 - Create diagrams,...
OmniGraffle Pro 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... Read more
OmniGraffle 6.1.2 - Create diagrams, flo...
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
RoboForm 2.0.2 - Password manager; syncs...
RoboForm is a password manager that offers one-click login, mobile syncing, easy form filling, and reliable security. Password Manager. RoboForm remembers your passwords so you don't have to! Just... Read more
Apple MainStage 3.1 - Live performance t...
Love the sound you got on your recording? MainStage 3 makes it easy to bring all the same instruments and effects to the stage. Everything from the Sound Library and Smart Controls you're familiar... Read more
Freeway Pro 7.0.2 - Drag-and-drop Web de...
Freeway Pro lets you build websites with speed and precision... without writing a line of code! With its user-oriented drag-and-drop interface, Freeway Pro helps you piece together the website of... Read more
A Better Finder Rename 9.44 - File, phot...
A Better Finder Rename is the most complete renaming solution available on the market today. That's why, since 1996, tens of thousands of hobbyists, professionals and businesses depend on A Better... Read more
Stacks 2.6.9 - New way to create pages i...
Stacks is a new way to create pages in RapidWeaver. It's a plugin designed to combine drag-and-drop simplicity with the power of fluid layout. Features: Fluid Layout: Stacks lets you build pages... Read more
Sid Meier's Civilization: Beyond Ea...
Sid Meier's Civilization: Beyond Earth is a new science-fiction-themed entry into the award-winning Civilization series. Set in the future, global events have destabilized the world leading to a... Read more
Logic Pro X 10.1 - Music creation and au...
Apple Logic Pro X is the most advanced version of Logic ever. Sophisticated new tools for professional songwriting, editing, and mixing are built around a modern interface that's designed to get... Read more

Choice Provisions is Set to Launch Destr...
Choice Provisions is Set to Launch Destructamundo on iOS This Month Posted by Tre Lawrence on January 23rd, 2015 [ permalink ] Choice Provisions – home stable to | Read more »
King of Thieves – An Interview With Zept...
Ahead of the release of ZeptoLab’s King of Thieves, we were able to ask ZeptoLab’s co-founder, Semyon Voinov, a few questions about the inspiration behind the game and what that means for the Cut the Rope franchise. | Read more »
Handle Review
Handle Review By Jennifer Allen on January 23rd, 2015 Our Rating: :: SPEEDY ORGANIZINGUniversal App - Designed for iPhone and iPad Handle is a very convenient way of juggling your emails, To Do list, and Calendar all through one... | Read more »
The New Disney Inquizitive App Offers a...
The New Disney Inquizitive App Offers a Place for Fans to Take Disney Quizzes Posted by Tre Lawrence on January 23rd, 2015 [ permalink ] | Read more »
Hands-On With Cut the Rope Developer Zep...
Marking quite a departure from ZeptoLab’s past successes, namely the Cut The Rope series, King of Thieves is shaping up to be quite promising. Due for release in February, we were lucky enough to have some time with a preview build to see exactly... | Read more »
Fast Fishing Review
Fast Fishing Review By Jennifer Allen on January 23rd, 2015 Our Rating: :: LIVES UP TO ITS NAMEUniversal App - Designed for iPhone and iPad Fishing is far from relaxing in Fast Fishing, but it is fun.   | Read more »
The LEGO Movie Video Game is Available N...
The LEGO Movie Video Game is Available Now for iOS Posted by Ellis Spice on January 23rd, 2015 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Satellina Review
Satellina Review By Jennifer Allen on January 23rd, 2015 Our Rating: :: TWITCHY BUT TACTICALUniversal App - Designed for iPhone and iPad Satellina requires quick thinking and twitchy fingers, and it’s pretty fun.   | Read more »
Tail Drift, the Crazy 360 Degree Flyer,...
Tail Drift, the Crazy 360 Degree Flyer, Has Gone Free-to-Play in a New Update Posted by Jessica Fisher on January 22nd, 2015 [ permalink ] | Read more »
PureSkate 2 Review
PureSkate 2 Review By Tre Lawrence on January 22nd, 2015 Our Rating: :: ALMOST ALL AIRUniversal App - Designed for iPhone and iPad PureSkate 2 lets one’s fingers do the skateboarding.   | Read more »

Price Scanner via MacPrices.net

iPhone 6 and 6 Plus GIve Apple Half Of US Mob...
Chicago-based Consumer Intelligence Research Partners, LLC (CIRP) have released analysis of the results of its research on mobile phone manufacturers for the calendar quarter that ended December 31,... Read more
Save $100 on MacBook Airs with 256GB of stora...
B&H Photo has 256GB MacBook Airs on sale for $100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 11″ 1.4GHz/256GB MacBook Air: $999 $100 off MSRP - 13″ 1.4GHz/256GB MacBook... Read more
21-inch 2.7GHz iMac on sale for $1179, save $...
B&H Photo has the 21″ 2.7GHz iMac on sale for $1179 including free shipping plus NY sales tax only. Their price is $120 off MSRP, and it’s the lowest price available for this model from any... Read more
iPhone Usage Rates by State Correlate With Ed...
Chitika Insights notes that despite iPhones being the largest source of smartphone Internet traffic in North America, their latest study finds a relatively high degree of variation of iPhone usage... Read more
ProGearX Extendable Pole “Pov/Selfie Stick” M...
There’s something inescapably narcissistic about the concept of selfies as they’ve developed as a smartphone-driven social (particularly social media) phenomenon that rubs me the wrong way. However,... Read more
iPad Air 2 on sale for up to $100 off MSRP, 2...
 Best Buy has iPad Air 2s on sale for up to $100 off MSRP on their online store for the next two days. Choose free shipping or free local store pickup (if available). Sale prices available for online... Read more
Roundup of Apple refurbished MacBook Pros and...
The Apple Store has Apple Certified Refurbished 2014 MacBook Pros and MacBook Airs available for up to $400 off the cost of new models. An Apple one-year warranty is included with each model, and... Read more
Sale! 13-inch 2.8GHz Retina MacBook Pro for $...
 B&H Photo has the 13″ 2.8GHz Retina MacBook Pro on sale for $1599 including free shipping plus NY sales tax only. Their price is $200 off MSRP, and it’s the lowest price available for this model... Read more
Next OS X/iOS Version Upgrades Should Concent...
On stage at Apple’s World Wide Developers’ Conference in June 2009, Bertrand Serlet, the company’s Senior Vice President of Software Engineering at the time, announced that the forthcoming OS X... Read more
First National Bank to Offer Apple Pay Adds I...
First National Bank will make Apple Pay available to customers beginning in the first quarter of 2015. Apple Pay will enable customers to easily make secure mobile payments with their First National... Read more

Jobs Board

*Apple* Solutions Consultant (ASC)- Retail S...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
*Apple* Lead Operator, GSOC - Apple (United...
**Job Summary** Apple is seeking an exceptional, customer service oriented and experienced persons to fulfill the role of Apple Lead Operator (ALO) as part of the Read more
Order Support Supervisor- *Apple* Online Sto...
**Job Summary** The Apple Online Store (AOS) Order Administration team is looking for an Order Support Supervisor to manage and lead a team of Specialists through the Read more
Senior Program Manager, *Apple* Online Supp...
**Job Summary** The Apple Online Support Planning team is looking for an experienced Senior Project Manager to lead key Quality program initiatives across the Online Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.