Originally Posted by cloudgazer
Which, if you stop to think about it rationally is precisely why HP have offered this as a temporary discount. A temporary discount doesn't permanently affect pricing power the way that a drastically reduced RRP would. Surely you can see that just from your own experience shopping for groceries?
Does HP have the best product in the market? Certainly not. But their retail strategy is entirely reasonable given what they do have. Will it succeed in establishing the Touchpad? Probably not, but that's not the fault of the retail marketeers, that's the fault of the product developers.
I agree that HP can only sell what they have in the wagon... or nothing.
I suspect they have a backlog of product that isn't selling. I do not think that reducing the price will goose the sales enough to solve their backlog problem.
I checked and the TouchPad went on sale July 1 -- a few days over 1 month ago.
This link shows that HP has contracted 400,000-450,000 per month.HP to ship 3 Million TouchPads the first year; 7-Inch Tablet coming in August
If that is correct, then, HP and its resellers are, likely, sitting on somewhere around 350,000-400,000 unsold units (given the long time HP took to bring the TouchPad to market). And, there's another 400,000 coming...
When the iPad 2 was announced, like Sammy, HP should have gone back to the drawing board -- to, at the very least, bring their hardware into competition.
The big problem, as I see it, is lack of apps and developers! Without them, who will buy a TouchPad? Why?
What they could have done (and still could do):
1) cancel manufacturing of the current model -- pay whatever contract penalties necessary.
2) cancel/postpone the 7-inch model -- pay whatever contract penalties necessary.
3) begin work on a follow-on with the same form factor -- based on assumptions of what iPads will be when the follow-on is ready.
4) contract (pay)
major developers to commit to write programs for the TouchPad and its follow-on
5) seed these developers with as many current TouchPads as they need and whatever assistance they need.
6) get the developers to announce their apps which are coming to the TouchPad and when
7) reduce the price of the TouchPad $100 plus $100 worth of free apps/content as they become available
8) announce publicly that HP is in this game for the long haul -- and that they are taking these steps to assure their position in the marketplace.
9) build a follow-on replacement that is as hardware-competitive with the iPad as possible -- even if they must accept low profits until they get a foothold in the market
The TouchPad should be easier to develop for than Android because of a single form factor and no fragmentation or fear of litigation.
That's what i"d do -- and be damned quick about it!