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HP makes $100 TouchPad price cut permanent in bid for No. 2 spot in tablet space

post #1 of 99
Thread Starter 
After receiving positive response to a temporary $100 price cut on its webOs-based TouchPad tablet, HP has decided to make the discount permanent as it aims for the No. 2 spot in the tablet market, behind Apple's iPad.

HP Senior Vice President Stephen DiFranco issued an email announcing the price cut would take effect immediately, "enabling both HP and [its] channel partners to be even more price competitive in the marketplace," as noted by This is my next. The 16GB Wi-Fi TouchPad is now priced eat $399.99 and the 32GB version at $499.99.

According to the executive, the price drop will supersede any other discounts, such as a current $50 instant rebate offer in the U.S. Early adopters who purchased the TouchPad before the discount will be eligible for a $50 credit toward applications in the device's App Catalog.

DiFranco also highlighted the fact that HP released the first over-the-air update for webOS 3.0 last week in North America and Europe. The update resolves a number of issues that the device launched with and is the first of a "steady stream of improvements to optimize TouchPad performance."

The company launched the sale over the weekend, just one month after the device's release. HP has yet to release sales numbers for the tablet, but industry watchers suspect that it has performed worse than expected.



Early reviews of the TouchPad, which features a 9.7-inch touchscreen and a Qualcomm Snapdragon dual-core 1.2GHz processor, characterized it as unfinished and "mediocre," though they did praise the webOS interface as "attractive and different."

HP executive Jon Rubenstein responded to the negative reviews by comparing webOS to Mac OS X, quoting early reviews of Apple's software that called it "sluggish," lacking "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," he said in a letter to employees, adding that webOS has the "potential for greatness."

HP has said that its goal is to take second place in the tablet market, rather than compete with Apple for the top spot. We think the world of Apple and have the utmost respect for their products, said vice president Richard Kerris. It would be ignorant for us to say that we are going to take it [the market] away from Apple.

Analysts have warned that iPad competitors are having trouble keeping costs down because they can't match Apple's design efficiency. IHS iSuppli estimates that the bill of materials for the 16GB Wi-Fi TouchPad runs $318, compared to an estimated BOM of $310 for the iPad 2 3G. Forrester analyst Sarah Rotman Epps said on Tuesday that iPad competitors may stand a better chance in Europe, while noting that they will need to cut their prices in order to take on Apple.

Apple itself has indicated that it was "purposefully aggressive" in pricing the iPad, which has lower profit margins than the iPhone.

"Our potential competitors [in tablets] are having a tough time coming close to iPad's pricing. iPad incorporates everything we've learned about building high value products," Apple CEO Steve Jobs said last October. "We create our own A4 chip, software, battery chemistry, enclosure, everything. This results in an incredible product at a great price. The proof will be in the pricing of our competitors' products, which will offer less for more."
post #2 of 99
HP suddenly realized that they were charging more than their iPad and Android competition on the market.
post #3 of 99
webOS has the potential for greatness, not only on smartphones and tablets but it could also work on notebooks and desktops, however does HP has the will to see it through?
I really wish HP all the success with the TouchPad, it could have been much better but they fell short, the hardware is just too plasticky and flimsy.

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post #4 of 99
So while HP lowers their prices competing with existing iPads Apple will release the next generation in the coming months raising the bar maintaining the price position.

In the meantime iOS 5.0 will come-out in next month improving the usability experience.

Personally, at this point I'd choose the iPad over any other device.
post #5 of 99
Although they're probably selling it for a loss, I expect they plan to make up for it in added volume.
post #6 of 99
Quote:
Originally Posted by deh2k View Post

Although they're probably selling it for a loss, I expect they plan to make up for it in added volume.

I fail to see how selling a product at a loss per unit can be made up "in volume".

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post #7 of 99
Quote:
Originally Posted by Tallest Skil View Post

I fail to see how selling a product at a loss per unit can be made up "in volume".

The materials costs are lower than the sale price so theoretically they may turn a profit with sufficient number of sales. Although $80 isn't very much to work with, especially if they want to sell through any retailers.
post #8 of 99
Quote:
Originally Posted by deh2k View Post


Although they're probably selling it for a loss, I expect they plan to make up for it in added volume.

That only works for the XBox and PS3.

Microsoft and Sony make it up in licensing fees for those $50 games... and game consoles have a lifespan of 5 years or more.

For a company like HP that is 99% reliant on hardware sales?

No way. Selling at a loss is a last resort to clear inventory...
post #9 of 99
Quote:
Originally Posted by deh2k View Post

Although they're probably selling it for a loss, I expect they plan to make up for it in added volume.



I think that's what everyone else is doing too!
post #10 of 99
So it's come down to a race for #2?

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post #11 of 99
Quote:
Originally Posted by Aizmov View Post

webOS has the potential for greatness, not only on smartphones and tablets but it could also work on notebooks and desktops, however does HP has the will to see it through?

I heard the HP is planning to incorporate WebOS in pretty much every product that they sell, from notebooks to printers. If they do it, ther will be tens of millions of WebOS products in the wild.

I really hope that they come through.
post #12 of 99
Gee, who didn't see this one coming?

Nice feint, HP.

(Having said that, I agree with Aizmov. Apple needs good competition to keep it moving, and WebOS is just that, given the chance. I think Android tablets are inevitable, so we can count on those, warts and all. But I would much prefer to see WebOS in this space than anything from Microsoft at this point. They've blown their chance to be good competitors in the tablet space.)
post #13 of 99
I hate to see Palm go down in flames, but I have serious doubts about HP understanding the consumer market, and bringing a quality product along with a great ecosystem, such as Apple has accomplished.
Are we going to see a multimedia powerhouse like iTunes, or the 3rd party support available anywhere you go for an HP tablet? Not likely.
I wish them luck, but I won't be helping them get there.
post #14 of 99
Quote:
Originally Posted by Michael Scrip View Post

That only works for the XBox and PS3.

Microsoft and Sony make it up in licensing fees for those $50 games... and game consoles have a lifespan of 5 years or more.

For a company like HP that is 99% reliant on hardware sales?

No way. Selling at a loss is a last resort to clear inventory...

Umm....errr...no. They could sell at a loss to gain market share or at the very least gain respectability. They don't need to make a profit with this iteration, there are other generations of TouchPad or more importantly webOS to think about.
Look at Sony with their Alpha line of cameras. Came out of no where, bought Minolta, then sold their first DLSR's at a loss just to gain market share...and guess what? It worked. They jumped from nothing straight to 3rd place hopping over camera giants (of yesteryear) Pentax, Olympus etc. etc. HP could, and frankly should do the same.
post #15 of 99
Quote:
Originally Posted by AppleLover2 View Post

I heard the HP is planning to incorporate WebOS in pretty much every product that they sell, from notebooks to printers. If they do it, ther will be tens of millions of WebOS products in the wild.

I really hope that they come through.

Well it's not like people will be buying Apps for their printers. WebOS on printers may improve the UI on multifunction devices, but it won't increase the size of the platform anymore than iOS in ATV currently does.
post #16 of 99
WebOS is pretty nice, though I haven't played around with the TouchPad itself (only the Palm Pre). If only the hardware was as nice as the software. I wish them luck.
post #17 of 99
Quote:
Originally Posted by AppleLover2 View Post

I heard the HP is planning to incorporate WebOS in pretty much every product that they sell, from notebooks to printers. If they do it, ther will be tens of millions of WebOS products in the wild.

I really hope that they come through.

Yes! that is the future! Seamless change (to the user) regardless of whether they are driving a truck or a sportscar (ATV, SkiDoo, SkateBoard, etc.)... And all that younger generation stuff I don't understand.
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post #18 of 99
Let the race to the bottom begin! Muah ha ha ha iPad will be unstoppable through 2012.
post #19 of 99
Heck, iPad 1 still rocks. iPad 2 rocks even harder. And iPad 3 is right around the corner. Competitors do not seem to have much of a chance. Maybe the competitors could switch over to a new product, like washing machines. But imagine, just imagine, if Apple started designing cars! They would be the most efficient and last forever. The only reason to upgrade would be to obtain more efficiency, and longer life.
post #20 of 99
If the hardware is good on the HP then is the only problem with the software? Sure a plastic case isn't as good as metal but the insides are what count. Does the touch screen work well and look good? If it does and the internals are made of quality parts the the Touchpad will be a great device once the software is improved.
post #21 of 99
Quote:
Originally Posted by MikeSmoke View Post

But imagine, just imagine, if Apple started designing cars! They would be the most efficient and last forever. The only reason to upgrade would be to obtain more efficiency, and longer life.

Umm...if they did that, that would be the dumbest thing they have ever done. No one would design a car that would last forever...would would buy a new one then? Just for efficiency? Features? If the cars were dirt cheap then maybe but at a starting price of 10K? No way...
post #22 of 99
Quote:
Originally Posted by peppermonkey View Post


Umm....errr...no. They could sell at a loss to gain market share or at the very least gain respectability. They don't need to make a profit with this iteration, there are other generations of TouchPad or more importantly webOS to think about.
Look at Sony with their Alpha line of cameras. Came out of no where, bought Minolta, then sold their first DLSR's at a loss just to gain market share...and guess what? It worked. They jumped from nothing straight to 3rd place hopping over camera giants (of yesteryear) Pentax, Olympus etc. etc. HP could, and frankly should do the same.

What good is market share? Bragging rights?

I see what you're saying... sell a couple million at a loss to gain mindshare with customers... but that doesn't really work with these kind of electronics.

It works with game consoles because you gotta buy games for them... that's kinda what they're for. And like I said... game consoles are on the market for years.

But cell phones, computers, tablets... no one sells them at a loss.
post #23 of 99
Quote:
Originally Posted by Dlux View Post

Gee, who didn't see this one coming?

Nice feint, HP.

(Having said that, I agree with Aizmov. Apple needs good competition to keep it moving...

right... Because they've stood still for the first nearly two years of zero competition.
This old "they need competition to keep them on their toes" thing gets trite after a while.
Apple makes great products because it's what they do. Jobs built a company in his perfectionist image. THATS what drives them, not incompetent, stumbling footsteps far behind them.
post #24 of 99
Quote:
Originally Posted by Applecation View Post

I hate to see Palm go down in flames, but I have serious doubts about HP understanding the consumer market, and bringing a quality product along with a great ecosystem, such as Apple has accomplished.
Are we going to see a multimedia powerhouse like iTunes, or the 3rd party support available anywhere you go for an HP tablet? Not likely.
I wish them luck, but I won't be helping them get there.

HP's handling of Palm is like a Gorilla with an iPhone. (OMG too many puns in this sentence)
post #25 of 99
Quote:
Originally Posted by peppermonkey View Post

Umm...if they did that, that would be the dumbest thing they have ever done. No one would design a car that would last forever...would would buy a new one then? Just for efficiency? Features? If the cars were dirt cheap then maybe but at a starting price of 10K? No way...

Apple has always been about quality. And they have figured out how to pull it off and make a profit. Last I heard, they are the most profitable corporation on the planet. And there are many, myself included, who like it and participate.

The iPad seems to be a new era in the Apple saga. Previously, Apple products where pretty much higher priced than PC's, based on specks per money. But they seemed to have figured out how to design and manufacture at better price points, while still maintaining their quality standards. The new MacBook Pros and MacBook Airs are further evidence of this trend. But at the same time, my 2008 C2D Macbooks still hold up, still rock, and are still very usefull.
post #26 of 99
Quote:
Originally Posted by GQB View Post

.... not incompetent, stumbling footsteps far behind them.

Vivid imagery. Perfectly put.
post #27 of 99
Quote:
Originally Posted by Tallest Skil View Post

I fail to see how selling a product at a loss per unit can be made up "in volume".

Economy of scale could make up a bit but I'd wager HP is just trying to get a user base going so it can then get developers which will give an ecosystem for which it can make the TouchPad a viable option.
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post #28 of 99
Quote:
Originally Posted by Suddenly Newton View Post

So it's come down to a race for #2?


Well, we pretty much know that iPad 3 has been decided by Apple as to what it will be.
So let's all start talking about iPad 4 rumors!

That'll make HP et. el. moan!
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post #29 of 99
To be fair, i'd like to read an updated review of TouchPad with its updated OS. to see if they fixed the fatal flaws at least. i'll look around ...

and no doubt HP will release a new model that is slimmer and lighter, its hardware fatal flaw. but when?

too soon to write them off tho.

but yes, this price cut is obviously needed to unload the unsold inventory of the V.1 TouchPad. their problem is, the race to the bottom with all the Android tabs is now well underway, including them. and it's going to get worse for the Holiday season! they won't ever be able to bring the price of their improved V.2 model back up to iPad levels like they hope.

HP really needs to focus on the enterprise market. they could take over RIM's spot there if they put it all together. but they have to hurry up. if they don't, next year some one else will.
post #30 of 99
HP brings an interesting mix to the fray. They are behind Google in development and their phone business is almost non-existant, despite being in the market for quite some time. However, HP has enormous potential for manufacturing and distributing tablets. And, like Apple they have a combined hardware-software approach.

Google has the opposite problem. They are further along in development (but not quality) and they have really good phone distribution. However, they have horrible prospects for tablet distribution. Google distributes through cell phone providers. When was the last time you logged onto ATT.com to buy a computer? And, the cell phone manufacturers have no experience making and selling PCs or the peripherals that go with them. Google also has a major problem with hardware optimization because their software isn't integrated, which means their software always feels half-baked when it is released. To boot, Google is under immense pressure from IP litigation and since they don't sell a product, they have to pass through the licensing costs.

Microsoft has different problems. MS is really behind in development and MS takes an eternity trying to integrate software with their partners hardware (with mediocre success). However, MS has huge potential to partner with both tablet and phone manufacturers. If you take into account phone and tablet distribution MS is only second to Apple. MS's biggest problem is actually producing a product and making it work on real hardware in a reasonable timeframe. MS is so slow their partners will be selling last years model for the foreseeable future. Their software is so resource intensive a new device will feel like last years model even if it has this years cost.

RIM is dead. The only thing they have done right is an integrated approach. RIM has strong (but dwindling) phone distribution channels, but no phone to distribute. RIM has a mediocre tablet at best; but even if they could produce a good tablet, they have no place to distribute a tablet. The only interesting thing about RIM is whether someone will buy it or whether it will go belly up and sell off its assets.

HP has potential, but their problem is that they will get caught in the middle. They can't take the low end becaues there will always be a cottage industry of non-integrated manufacturers that reduce profits to nothing. They won't be able to beat Apple on the high end and they won't be able to beat the malware sold at the low end. At best they help Apple by beating up the low end, which is what is going to happen with the $100 price reduction.

The next quantum leap by Apple is to tie the phone, tablet, and PC together with iCloud (and the iPod). Here again, Apple is the only one poised to make such a move. Apple is the only one with major distribution in phones, tablets, and PCs that can be seamlessly synced.

I predict the move to iCloud is where Apple will leave Google in the dust. Google's approach to the cloud is just dead wrong. Nobody wants to be dependent on an internet connection. They just want their devices synced up (and maybe backed up) when their internet connection is available. Google's cloud is beneficial if you have poor computer performance, and you have a really really fast and reliable Internet connection for all your devices. Apple's Cloud is usefull if you have good computing power and poor internet service. It doesn't take a rocket scientist to figure out who is going to win this one. Google lost before they started.

Interestingly, the cloud is where MS could come back. MS has the capability of partnering with PC, Phone, and Tablet manufacturers. Also, HP is strong in this category because they have the strongest PC precense of anyone and they have an integrated approach. If people demand syncing between all their devices who better than HP to provide an integrated approach. Interestingly, the best positioned competitor right now (Google) looks to be the worst positioned competitor in the cloud wars. All I can say is Google better adapt quickly or they are going to get hammered. Maybe Apple will play its cards correctly and keep HP, MS, and Google at each other's throat while Apple syncs up the world to an array of Apple devices.

Any way you look at it, Apple is the clear winner in the near term. Apple has an integrated approach that gives them speed to market and high performance. Apple has a killer phone, killer phone distribution, a killer tablet, and killer tablet distribution channels and the ability to tie it all together. Apple's biggest risk is that they are conciously choosing not to sell to the low end market. If Apple doesn't sell to the low end market and the low end market subsumes the rest of the market.........good bye Apple. This has nothing to do with who is servicing the low end market (Google or MS). It will simply be the consequence of servicing a market that disappears. Hopefully it won't happen and/or Apple will adapt.

Should be interesting.
post #31 of 99
Quote:
Originally Posted by MikeSmoke View Post

Apple has always been about quality. And they have figured out how to pull it off and make a profit. Last I heard, they are the most profitable corporation on the planet. And there are many, myself included, who like it and participate.

The iPad seems to be a new era in the Apple saga. Previously, Apple products where pretty much higher priced than PC's, based on specks per money. But they seemed to have figured out how to design and manufacture at better price points, while still maintaining their quality standards. The new MacBook Pros and MacBook Airs are further evidence of this trend. But at the same time, my 2008 C2D Macbooks still hold up, still rock, and are still very usefull.

I think Apple took a hit on profitability in the hopes that they could make it up on volume. The winners in the PC wars were the volume sellers. I think Apple decided to try it with the iPad. Volume pricing is a really hard thing to do with a high end product and even harder with an allegedly new category of product. Volume pricing is usually a strategy to take with an established market starting with the bottom up. The reason Apple was succesful is because they knew there wouldn't be any competition in the first year. The market was completely Apple's. Capitalizing on their lead was their only chance for market dominance, unless they wanted to compete in the low end. Once you come to this conclusion, the answer is simple. The only way to get volume in the first year of a new product is a rock bottom price. As you may recall, some speculated the iPad would debut at $1,000. The $500 price point was nothing short of shocking.

I'm sure losing the first PC war had a lot to do with the carefully calcuated approach Apple took with the iPad. I don't think it was luck. I think they planned it this way. When Steve Jobs announced the iPad he said it was the most important thing he had done. He obviously had a vision of how things would play out. Most couldn't see it even when he spelled it out for them.
post #32 of 99
Quote:
Originally Posted by Alfiejr View Post

To be fair, i'd like to read an updated review of TouchPad with its updated OS. to see if they fixed the fatal flaws at least. i'll look around ...

and no doubt HP will release a new model that is slimmer and lighter, its hardware fatal flaw. but when?

too soon to write them off tho.

but yes, this price cut is obviously needed to unload the unsold inventory of the V.1 TouchPad. their problem is, the race to the bottom with all the Android tabs is now well underway, including them. and it's going to get worse for the Holiday season! they won't ever be able to bring the price of their improved V.2 model back up to iPad levels like they hope.

HP really needs to focus on the enterprise market. they could take over RIM's spot there if they put it all together. but they have to hurry up. if they don't, next year some one else will.

RIM doesn't have a spot in anything and certainly not the Enterprise market. No business person is going to buy a tablet that doesn't have push email. Seriously, RIM's device was dead on arrival.

I agree, HP is positioned to compete with Apple, but will get beat up from the bottom (i.e., Android malware).
post #33 of 99
Hey, knock another hundred off and you will even get a more positive response. Make it free, even better yet.

PS:

Mr. Rubenstein it is true OSX at version 10.0 received the pretty poor reviews described (rightfully so). Yet, those reviews largely applied to the Beta, which Apple released publically. About 4 months later, Apple preinstalled 10.0 on new machines, but didn't make it the default. Apple didn't ship OSX as the default on its Macs until over a year after the public beta when it released 10.1 (a massive free update). Even when people were running OSX, they could also run System 9 in emulation and have access to all the prior applications. In a nut shell, customers didn't have to rely on OSX intially. So with all that in mind, what is the default OS on HP Devices?

Quote:
Originally Posted by AppleInsider View Post

After receiving positive response to a temporary $100 price cut on its webOs-based TouchPad tablet, HP has decided to make the discount permanent as it aims for the No. 2 spot in the tablet market, behind Apple's iPad.
post #34 of 99
If you get market share by selling cheap, then the people buying will be cheap and hardly spend on apps.

And if you think they won't be cheap, just look at Android.
post #35 of 99
Some good points. HP, however, has two other advantages that should not be underrated. First, it has a huge patent portfolio. HP isn't going to get squeezed like Google's hardware manufactures. Eventually there will be a day of reckoning for Android manufacturers. Some might even prefer licensing WebOS from HP, as HP has said it is open to the possibility. Apple will not sue HP as the companies respect each other (HP even sold an HP branded iPod at one point).

Second, HP can take an Apple approach like when Apple released OSX for the first time. It can preinstall WebOS on dual boot computers while having a familiar OS like Windows as the default. That is a huge customer base. This will allow customers to play with the OS and become accustomed to it. Unlike Microsoft, HP can afford a slow start with WebOS.

I see HP as the strongest challenger to Apple if HP can hold it together and play its cards right. With that said, I played with the HP Tablet. Currently, it isn't worth the money even with the discount compared to the iPad.


Quote:
Originally Posted by ash471 View Post

HP brings an interesting mix to the fray. They are behind Google in development and their phone business is almost non-existant, despite being in the market for quite some time. However, HP has enormous potential for manufacturing and distributing tablets. And, like Apple they have a combined hardware-software approach.

Google has the opposite problem. They are further along in development (but not quality) and they have really good phone distribution. However, they have horrible prospects for tablet distribution. Google distributes through cell phone providers. When was the last time you logged onto ATT.com to buy a computer? And, the cell phone manufacturers have no experience making and selling PCs or the peripherals that go with them. Google also has a major problem with hardware optimization because their software isn't integrated, which means their software always feels half-baked when it is released. To boot, Google is under immense pressure from IP litigation and since they don't sell a product, they have to pass through the licensing costs.

Microsoft has different problems. MS is really behind in development and MS takes an eternity trying to integrate software with their partners hardware (with mediocre success). However, MS has huge potential to partner with both tablet and phone manufacturers. If you take into account phone and tablet distribution MS is only second to Apple. MS's biggest problem is actually producing a product and making it work on real hardware in a reasonable timeframe. MS is so slow their partners will be selling last years model for the foreseeable future. Their software is so resource intensive a new device will feel like last years model even if it has this years cost.

RIM is dead. The only thing they have done right is an integrated approach. RIM has strong (but dwindling) phone distribution channels, but no phone to distribute. RIM has a mediocre tablet at best; but even if they could produce a good tablet, they have no place to distribute a tablet. The only interesting thing about RIM is whether someone will buy it or whether it will go belly up and sell off its assets.

HP has potential, but their problem is that they will get caught in the middle. They can't take the low end becaues there will always be a cottage industry of non-integrated manufacturers that reduce profits to nothing. They won't be able to beat Apple on the high end and they won't be able to beat the malware sold at the low end. At best they help Apple by beating up the low end, which is what is going to happen with the $100 price reduction.

The next quantum leap by Apple is to tie the phone, tablet, and PC together with iCloud (and the iPod). Here again, Apple is the only one poised to make such a move. Apple is the only one with major distribution in phones, tablets, and PCs that can be seamlessly synced.

I predict the move to iCloud is where Apple will leave Google in the dust. Google's approach to the cloud is just dead wrong. Nobody wants to be dependent on an internet connection. They just want their devices synced up (and maybe backed up) when their internet connection is available. Google's cloud is beneficial if you have poor computer performance, and you have a really really fast and reliable Internet connection for all your devices. Apple's Cloud is usefull if you have good computing power and poor internet service. It doesn't take a rocket scientist to figure out who is going to win this one. Google lost before they started.

Interestingly, the cloud is where MS could come back. MS has the capability of partnering with PC, Phone, and Tablet manufacturers. Also, HP is strong in this category because they have the strongest PC precense of anyone and they have an integrated approach. If people demand syncing between all their devices who better than HP to provide an integrated approach. Interestingly, the best positioned competitor right now (Google) looks to be the worst positioned competitor in the cloud wars. All I can say is Google better adapt quickly or they are going to get hammered. Maybe Apple will play its cards correctly and keep HP, MS, and Google at each other's throat while Apple syncs up the world to an array of Apple devices.

Any way you look at it, Apple is the clear winner in the near term. Apple has an integrated approach that gives them speed to market and high performance. Apple has a killer phone, killer phone distribution, a killer tablet, and killer tablet distribution channels and the ability to tie it all together. Apple's biggest risk is that they are conciously choosing not to sell to the low end market. If Apple doesn't sell to the low end market and the low end market subsumes the rest of the market.........good bye Apple. This has nothing to do with who is servicing the low end market (Google or MS). It will simply be the consequence of servicing a market that disappears. Hopefully it won't happen and/or Apple will adapt.

Should be interesting.
post #36 of 99
he sounded like that he could be steve jobs too.

Quote:
Originally Posted by AppleInsider View Post

HP executive Jon Rubenstein responded to the negative reviews by comparing webOS to Mac OS X, quoting early reviews of Apple's software that called it "sluggish," lacking "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," he said in a letter to employees, adding that webOS has the "potential for greatness."
post #37 of 99
How does pricing work? I thought sellers got have the market price. If the market price is $400, doesn't HP get half?

If that is how it works, ouch.

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post #38 of 99
Quote:
Originally Posted by ash471 View Post

RIM is dead. The only thing they have done right is an integrated approach. RIM has strong (but dwindling) phone distribution channels, but no phone to distribute. RIM has a mediocre tablet at best; but even if they could produce a good tablet, they have no place to distribute a tablet. The only interesting thing about RIM is whether someone will buy it or whether it will go belly up and sell off its assets.

Well QNX is actually pretty Good. Sure playbook tanked, but so did android and everyone else. I think QNX is equal to webOS on tablets. Of course RIM "borrowed" some design elements from webOS, but overall both are innovative in terms of gestures and are fairly intuitive.

If RIM pushes QNX on phones as well and gear them in a laser focus on enterprise only they will keep their niche and will be very successful.

HP has to succeed in the consumer market (at least touchpad was aimed at consumer market). In this segment we have techies, gamers, old people, music / video / photo geeks, facebookers and students. Apple has all of those categories in the bag.

Google made an appeal to techies and low end which made it successful. I'm not sure what HP has. Maybe printing enthusiasts.
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post #39 of 99
Quote:
Originally Posted by MikeSmoke View Post

Apple has always been about quality. And they have figured out how to pull it off and make a profit. Last I heard, they are the most profitable corporation on the planet. And there are many, myself included, who like it and participate.

The iPad seems to be a new era in the Apple saga. Previously, Apple products where pretty much higher priced than PC's, based on specks per money. But they seemed to have figured out how to design and manufacture at better price points, while still maintaining their quality standards. The new MacBook Pros and MacBook Airs are further evidence of this trend. But at the same time, my 2008 C2D Macbooks still hold up, still rock, and are still very usefull.

Umm, I think you misunderstood me. Apple making quality products is of course good. Same if they started creating cars. But designing a car that lasts forever on the other hand (forever, not 5 years or 10 years) is a bad idea. Well, of course people buying to get better fuel efficiency would be a great incentive to buy new even if their 500 yr old car works just as new
post #40 of 99
Quote:
Originally Posted by Michael Scrip View Post

What good is market share? Bragging rights?

I see what you're saying... sell a couple million at a loss to gain mindshare with customers... but that doesn't really work with these kind of electronics.

It works with game consoles because you gotta buy games for them... that's kinda what they're for. And like I said... game consoles are on the market for years.

But cell phones, computers, tablets... no one sells them at a loss.

But it can work that way (assuming they do it right). You lose in the short term (i.e. the current generation of the product) but with the mind share, assuming it stays strong, would lead to greater opportunity of them buying the newer generation (sold at a profit).
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  • HP makes $100 TouchPad price cut permanent in bid for No. 2 spot in tablet space
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