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HP slashes iPad-competing TouchPad price to $399 1 month after release

post #1 of 143
Thread Starter 
Just over a month after the HP TouchPad hit the market, its price has been cut by one-fifth for a special weekend sale intended to boost sales of the iPad-competing tablet.

Starting Friday and through the weekend, HP is selling its TouchPad for $399.99 for the 16GB model, and $499.99 for the 32GB capacity. The prices, available through HP and at all major retailers, are with a $100 instant rebate.

The PC maker has not shed any light on sales of its tablet, but the discount, which undercuts Apple's iPad by $100, comes soon after the July 1 launch of the hardware, suggested it has gotten off to a slow start.

The weekend sale is being pushed in concert with a TV campaign advertising the limited-time price. And TouchPad is even cheaper at Amazon-owned deal-a-day site woot.com, where the tablet is being sold for $379.99 on Friday only.

When it debuted last month, the TouchPad was met with mediocre reviews that praised the device for its hardware design, but felt the webOS software powering it was lacking. While reviewers were impressed with the TouchPad's looks, they took issue with the tablet's weight, bugs and lack of applications.

Those reviews prompted former Palm Chief Executive and current HP executive Jon Rubinstein to send a letter to employees in which he suggested that media criticism of its webOS operating system on the TouchPad is similar to complaints reviewers had with early versions of Mac OS X. Those early reviews characterized Apple's software as "sluggish," without any "quality apps," and "just not making sense."

"It's hard to believe those statements described Mac OS X -- a platform that would go on to change the landscape of Silicon Valley in ways that no one could have imagined," Rubinstein wrote, highlighting what he sees as the "potential for greatness" in webOS.



HP executives have qualified the TouchPad's position in the market, saying they don't expect the first-generation device to dethrone Apple's market-leading iPad. Last quarter, Apple sold a record 9.25 million iPads.

Competitors have scrambled to attempt to replicate the success Apple found on the market almost immediately with the iPad. But sales of devices like the RIM PlayBook and Samsung Galaxy Tab have failed to compete with the iPad, which was said in May by Nielsen to control 82 percent of the tablet market in the U.S.
post #2 of 143
Quote:
Originally Posted by AppleInsider View Post

The PC maker has not shed any light on sales of its tablet....

Next step: shed tablet.
post #3 of 143
Not good.
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post #4 of 143
HP is trying to buy some market share. Not a bad short-term strategy if you can afford it. Could help in the long run to get it into more peoples' hands today.

They could even make a profit on it with sales of peripherals. Discount the TouchPad, but charge full list price for the charging station, etc.
post #5 of 143
These are the same people that criticize Apple as a niche company that has no clue about computing technology. Always closely coddling Microsoft as if they are some kind of all knowing god, welcome to the real HP. now keep trying to play catchup to Apple, which is 10 years ahead of you all. Because all of you chose to build your platforms on Microsoft technology while Mac os X was evolving and paving a new path.
post #6 of 143
Quote:
Originally Posted by Curmudgeon View Post

HP is trying to buy some market share. Not a bad short-term strategy if you can afford it. Could help in the long run to get it into more peoples' hands today.

They could even make a profit on it with sales of peripherals. Discount the TouchPad, but charge full list price for the charging station, etc.

HP is not a company with vision or long term plans, they are based on a get rich quick mentality, culture & business model, they have no hopes of success against Apple.
post #7 of 143
HP definitely has to compete with the iPad on price, just like the Kindle does. The question is, can HP actually sell a "full-fledged" iPad competitor (i.e., not a 'niche' tablet like the Kindle or Nook or some other e-reader) cheaper than an iPad AND make a profit? (Probably not.)
post #8 of 143
If they were serious about competing they should have started at these prices and taken the loss. Now it just looks weak.
post #9 of 143
Quote:
Originally Posted by jukes View Post

If they were serious about competing they should have started at these prices and taken the loss. Now it just looks weak.

I agree with this response.
post #10 of 143
At this time, I expect Jon Rubinstein to be wearing his parachute to the office every day.
Cough! Cough!
post #11 of 143
Quote:
Originally Posted by AppleInsider View Post

...special weekend special...

Wow! That's pretty special.

Brought to you by the Office of the Department of Redundancy Department.
post #12 of 143
...but they work together on the joint venture of sellout.woot.com

They were actually purchased by Amazon.
post #13 of 143
Not only is HP cutting price but it is increasing its' appearance on national TV by running new ads. I believe this is there big push to try to carve out a spot. So much for not going to compete with Apple in the consumer market and just be in the business market. What I hope is that people are smart enough to look at the total package.
rfrmac
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rfrmac
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post #14 of 143
Quote:
Originally Posted by KazKam View Post

Wow! That's pretty special.

Brought to you by the Office of the Department of Redundancy Department.

lol. That was kinda funny. kinda...
post #15 of 143
Well, I suppose all the bib-dribblers who claimed "if they drop the price to X, I'll take two!" can now make this the blockbuster hit they claimed it would be.

Then again, I doubt it.
post #16 of 143
Quote:
Originally Posted by AppleInsider View Post

And TouchPad is even cheaper at Amazon-owned deal-a-day site woot.com, where the tablet is being sold for $379.99 on Friday only.

ah, woot, where bad products go to get dumped. next up: the hp touchpad in a woot bag of crap.
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"Personally, I would like nothing more than to thoroughly proof each and every word of my articles before posting. But I can't."

appleinsider's mike campbell, august 15, 2013
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post #17 of 143
for $399, i'd rather get a 64GB iPod touch.
post #18 of 143
Quote:
Originally Posted by Mister Snitch View Post

HP definitely has to compete with the iPad on price, just like the Kindle does. The question is, can HP actually sell a "full-fledged" iPad competitor (i.e., not a 'niche' tablet like the Kindle or Nook or some other e-reader) cheaper than an iPad AND make a profit? (Probably not.)

The question is how much are they willing to lose to buy market-share. If they could buy 25% of the tablet market by selling the devices below cost that could end up being a smart move in the longer term. I doubt HP has that kind of commitment though.
post #19 of 143
At these prices I'm buying 3 each for my Wife, my dog and I.
na na na na na...
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na na na na na...
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post #20 of 143
HP well what can I say. There are so many things wrong with your company that I don't know where to start. It's a shame actually. You are such an iconic company of Palo Alto. First of all, I've had 5 HP Officejet printers the last one cost me over $450. I will be purchasing Canon printers or at least trying them out from this point forward. Can't even sync to your crappy Elitebook. Disgraceful. Ok now on to the Touchpad. I thought margins were really tight with electronics such as pads, tablets and laptops. I guess I'm wrong. How can you sell a product for $100 less after the first month?? Do you really think that if someone is going to spend $400 on a piece of electronics that sucks they wouldn't rather spend an extra $100 for the item they really want?? These days $100 doesn't go as far as it used to. Teenagers piss $100 like it's nothing. People who buy these types of niche electronics are typically saavy or at least smart enough to know better. I can't wait to see your next quarterly numbers statements b/c that's when they have to declare all their sales figures etc. Mind you they will probably cook the books somehow to downplay what a disappointment the Touchpad was. If I wasn't going to buy an iPad2 I sure as hell wouldn't buy a Touchpad/Playbook/Xoom I would probably buy a Samsung or Toshiba. Just listen to all the genius people that review these products they can barely cough up a "meh" for these pathetic attempts. And it wouldn't matter if it was $100 cheaper. If it doesn't work smoothly who wants to deal with all of the frustration. The writing is on the wall. Nobody discounts their hottest newest product a month after it's launched if sales are robust. Therefore, we can conclude that sales of the Touchpad are totally puuuuuuuuuuuuthetic. But that's what happens when you try to sell junk to intelligent people. I hate big companies that pump out expensive garbage that doesn't function properly. I hope your stock plummets just like RIMM did. Nuff said.
post #21 of 143
My mom works for HP and bought one shortly after it launched (apparently HP was "encouraging" its employees to buy one). She doesn't need a ton of apps, and she seems to like it. I played with it for a little bit and I like the multitasking of webOS better than my iPad, but overall the iPad is still the superior product. HP needed to drop their price in order to compete, because if you're gonna spend $499 for a tablet, why would you get anything other than an iPad?
post #22 of 143
Yeah, I saw the advertisement last night on TV and I thought "What the F....?" Then I thought, "and the race to the bottom begins!!!" It is only mid Summer and already tablet manufacturers are slashing prices so they can get some traction for the holiday season. I know this is only suppose to be temporary, but buyers will hold out for the next "special weekend" once they know that deep discounts are possible. $379 on Amazon with no shipping or sales tax is a pretty good deal. Too bad the operating system is slow, there are very few apps and the HP tablet is too heavy. If HP wanted to discount their offerings so quickly, they should had stuck with MS. WP7 phones were discounted just a little over a month after their release last fall, and we all know how well that helped them sell more phones and gain market share. (sarcasm)
post #23 of 143
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Originally Posted by djmikeo View Post

lol. That was kinda funny. kinda...

Originally Posted by helia

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I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
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post #24 of 143
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Originally Posted by zindako View Post

I agree with this response.

I also concur with that response. Who hires these morons in marketing???
post #25 of 143
Quote:
Originally Posted by rfrmac View Post

Not only is HP cutting price but it is increasing its' appearance on national TV by running new ads. I believe this is there big push to try to carve out a spot. So much for not going to compete with Apple in the consumer market and just be in the business market. What I hope is that people are smart enough to look at the total package.

What's the total package?
post #26 of 143
Quote:
Originally Posted by corbettaa View Post

I also concur with that response. Who hires these morons in marketing???

Lol, so true....
post #27 of 143
Wow, any of you guys even used the TouchPad? It's actually pretty good for their first version/attempt. Go ahead, find one and try it. I did out of curiosity and liked it a lot! If only they had a way to switch between keyboard layouts and localization support, but they don't go after anything but the states right now.
The problem with iOS is that it's STALE. Come on, it's been 4 years already, aren't you all bored with the same old that barely even changes? The main attraction of webOS is the attention to detail and because of that there's a huge potential. Most of these things usually happen because of a couple very devoted folks within the company that have a vision and push things forward, putting love in what they do. I certainly can't say the same thing about Android which is about as lifeless and Windows-like in its ways as it can be. webOS "sees" where it should go, Android on the other hand is blindly stumbling in the dark.
post #28 of 143
Quote:
Originally Posted by Buck View Post

The problem with iOS is that it's STALE. Come on, it's been 4 years already, aren't you all bored with the same old that barely even changes?

Really now!

Here is the original iPhone.

All those apps you see on the Home Screen are all you got. They worked smoothly and well but it was limited. They decided to release finished product not a bunch of unfinished potential. The original iPhone was a great start!

Here is a short list description of new features coming to iOS 5.0 over iOS 4.x.

http://www.apple.com/ios/ios5/features.html
Here is a detailed list of major changes iPhone OS 1.0 and iOS 5.0.

http://en.wikipedia.org/wiki/IOS_ver...touch_and_iPad
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post #29 of 143
Yeah, WebOS is not like Android at all, it's much more interesting. Let's hope for the best.
post #30 of 143
The touchpad is actually pretty tempting at that price. Woot! has it even cheaper today, and some sales were supposed to have it near $350. You certainly wont find an Android tablet of good quality at that price. If they can maintain a $400 price point they might gain some share.

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post #31 of 143
Smart move by HP. Get the market share while Android still weak.
post #32 of 143
I wouldn't count HP out. In fact, I think it has the best chance of giving Apple Tablet competition. Remember, HP plans to put webOS as an alternative OS on all its computers. HP sells a lot of computers. That will give the OS exposure.

Quote:
Originally Posted by zindako View Post

HP is not a company with vision or long term plans, they are based on a get rich quick mentality, culture & business model, they have no hopes of success against Apple.
post #33 of 143
I view stability as good. Further, change for change's sake isn't always good.

Quote:
Originally Posted by Buck View Post

The problem with iOS is that it's STALE. Come on, it's been 4 years already, aren't you all bored with the same old that barely even changes?
post #34 of 143
Quote:
Originally Posted by Curmudgeon View Post

HP is trying to buy some market share. Not a bad short-term strategy if you can afford it. Could help in the long run to get it into more peoples' hands today.

They could even make a profit on it with sales of peripherals. Discount the TouchPad, but charge full list price for the charging station, etc.

Somebody in the marketing department needs to be fired. You don't take your pants off after releasing a main stream product after 30 days! Another tablet going down in flames.
post #35 of 143
I can only think of one device that was dropping prices this fast - the KIN. Though I guess its two devices, but this is a huge price cut, bigger than android even, but not as big as google TV (it may get there).

HP has to be pretty annoyed to drop the price this much, though I don't think they are ready to kill off webOS. I heard they have a plan to start marketing it as a business device rather than consumer and maybe they want to sell out of version 1 to cut their losses before veering in another direction.
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post #36 of 143
Quote:
Originally Posted by cloudgazer View Post

The question is how much are they willing to lose to buy market-share. If they could buy 25% of the tablet market by selling the devices below cost that could end up being a smart move in the longer term. I doubt HP has that kind of commitment though.

It might not help. They still need people to buy them.

Note that cost competition was not a factor in the MP3 player market. None of Apple's competitors were able to exhibit any significant advances by undercutting iPod prices. Even today, you can buy a 4GB iRiver player for half what a 2GB iPod shuffle costs, yet Apple dominates the MP3 player market.

The immediate deep discounting of a newly released product is bad form. This damages the public's perception of the brand. Once again, Jon Rubinstein has bit off way more than he can chew. Probably a great engineering project manager but certainly not someone who can lead a business unit, let alone a whole company.
post #37 of 143
I'd actually like to see this become moderately successful. I have no plans to buy one, but it would be good for the people who "hate Apple" to have a good tablet platform instead of the terrible Android. I say this as someone who has experienced an Android tablet. It isn't pretty. Non-Apple users deserve a quality product as well. Android isn't even close. So I wish the best to WebOS.
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post #38 of 143
Quote:
Originally Posted by cvaldes1831 View Post

It might not help. They still need people to buy them.

Note that cost competition was not a factor in the MP3 player market. None of Apple's competitors were able to exhibit any significant advances by undercutting iPod prices. Even today, you can buy a 4GB iRiver player for half what a 2GB iPod shuffle costs, yet Apple dominates the MP3 player market.

The immediate deep discounting of a newly released product is bad form. This damages the public's perception of the brand. Once again, Jon Rubinstein has bit off way more than he can chew. Probably a great engineering project manager but certainly not someone who can lead a business unit, let alone a whole company.

I think its hard to assemble the right team when google and apple ate away all the good engineers. Maybe if webOS was launched before android it would have been different.

I have no idea how apple recruited top engineers back in its shitty days, my guess is the dislike of MS drove some talented people into apple. Now both google and apple have huge followings amongst engineers, and so there is really no point of applying to HP when you can work for apple or google.
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post #39 of 143
HP can and does operate in a different way to Apple.

It's fairly common for HP to offer rebates on its products, even recently introduced ones.

I don't think we should read too much into this.
post #40 of 143
Quote:
Originally Posted by dcorban View Post

I have no plans to buy one, but it would be good for the people who "hate Apple" to have a good tablet platform instead of the terrible Android. I say this as someone who has experienced an Android tablet. It isn't pretty. Non-Apple users deserve a quality product as well. Android isn't even close. So I wish the best to WebOS.

I think android and webOS are very similar in terms of usability right now. And in terms of potential they are pretty much similar as well.

That's the problem. A regular user can't tell the difference between Android, QNX and webOS. Apple stands out and I would say microsoft phone 7 stands out. All others are pretty generic in my opinion.
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