HP begins TouchPad clearance with $99 fire sale
Resellers have begun clearing HP TouchPad inventory with a drastic sale that cuts the price of 16GB and 32GB models to $99 and $149, respectively, just one day after the device was discontinued.
Update: webOSroundup reports that HP is offering either a full refund or a credit for the price difference to earlier TouchPad buyers. Also, an HP spokesperson has said that all TouchPads are sold out in the U.S., but more are coming soon.
The company reportedly sent a memo to its affiliates announcing the $300 price cut, which is on top of a $100 price cut that went into effect earlier this month, as noted by PreCentral.net.
"HP will be lowering the price of the TouchPad beginning Saturday 8/20/11. This is the lowest price ever for the TouchPad so please post it as soon as it goes live," the alleged memo read.
Though the sale is set to begin on Saturday, some resellers, including Best Buy Canada and Future Shop, are already listing the new pricing, though both appear to have quickly sold out of the device.
The discounts are likely fueled by a $100 million write-off that HP took for unsold TouchPad inventory. Resellers, including Best Buy, were said to have complained to HP about the overstock, refusing to pay for the hundreds of thousands of leftover units.
The world's largest PC maker announced Thursday that it would discontinue the webOS smartphone and tablet business that it acquired by purchasing Palm last year. The company is also considering spinning off its high-volume, but low-profit PC business in order to focus on software and services.
The cancellation of the TouchPad has been viewed as a major victory for Apple and the iPad, with some pundits reiterating their belief that the "tablet market" is really only an "iPad market."
As far back as March, J.P. Morgan analyst Mark Moskowitz warned that non-iPad tablets could face a "bubble burst" as potential excess supply could result in overstock. In June, he reported that competitors appeared to have reduced build plans after weak sales gave them an "early dose of reality."
Earlier this week, sources within the tablet manufacturing industry suggested that upcoming price cuts from vendors could trigger a price war as non-iPad tablet makers slashed margins in order to gain price advantages over competitors.
Update: webOSroundup reports that HP is offering either a full refund or a credit for the price difference to earlier TouchPad buyers. Also, an HP spokesperson has said that all TouchPads are sold out in the U.S., but more are coming soon.
The company reportedly sent a memo to its affiliates announcing the $300 price cut, which is on top of a $100 price cut that went into effect earlier this month, as noted by PreCentral.net.
"HP will be lowering the price of the TouchPad beginning Saturday 8/20/11. This is the lowest price ever for the TouchPad so please post it as soon as it goes live," the alleged memo read.
Though the sale is set to begin on Saturday, some resellers, including Best Buy Canada and Future Shop, are already listing the new pricing, though both appear to have quickly sold out of the device.
The discounts are likely fueled by a $100 million write-off that HP took for unsold TouchPad inventory. Resellers, including Best Buy, were said to have complained to HP about the overstock, refusing to pay for the hundreds of thousands of leftover units.
The world's largest PC maker announced Thursday that it would discontinue the webOS smartphone and tablet business that it acquired by purchasing Palm last year. The company is also considering spinning off its high-volume, but low-profit PC business in order to focus on software and services.
The cancellation of the TouchPad has been viewed as a major victory for Apple and the iPad, with some pundits reiterating their belief that the "tablet market" is really only an "iPad market."
As far back as March, J.P. Morgan analyst Mark Moskowitz warned that non-iPad tablets could face a "bubble burst" as potential excess supply could result in overstock. In June, he reported that competitors appeared to have reduced build plans after weak sales gave them an "early dose of reality."
Earlier this week, sources within the tablet manufacturing industry suggested that upcoming price cuts from vendors could trigger a price war as non-iPad tablet makers slashed margins in order to gain price advantages over competitors.
Comments
Maybe they just pulled them offline in advance of the big sale - so they don't have customers upset for paying full price.
I'm sure it will sell now, but how funny would it be if they still can't sell through their quantities of touchpads?
"They're going away fast!"
"With prices this low, we must be discontinuing the entire line and giving up entirely crazy!"
Great! Let's let HP drive the stock market down even further! Today they out-did themselves.
Actually, the damage was done yesterday. I'm just lamenting...
"get your limited edition tablet!"
"they're going away fast!"
"with prices this low, we must be discontinuing the entire line and giving up entirely crazy!"
awesome!
I kinda wish this deal existed in Australia, I'd probably pick one up for my gf, if only so that she stopped stealing my iPad :-)
Wow, that's a pretty amazing price for a device that is well-made and with an OS that, in general, appears ti be pretty well-liked.
I kinda wish this deal existed in Australia, I'd probably pick one up for my gf, if only so that she stopped stealing my iPad :-)
Trust me, she wouldn't think you were being genuine! ...and would probably still keep stealing your iPad.
At $99, it may be worth it, if only as a portable web device and novelty.
And watching movies. At $99 these aren't a bad deal. But that's probably all they're worth.
But looks like people really did want the HP TouchPad, just not at reasonable prices. I think there is a tablet market--correction--a non-iPad market for diehard Apple haters who want a tablet experience. But it's about as big as the market for the Zune and whathaveyou music players. My opinion of course.
So this is either bogus, a fishing attempt to gauge demand, or whoever said there were 250,000 Touchpads lying around is full of BS.
I think there is a tablet market--correction. My opinion of course.
You're words, taken out of context, but I think this is the reality of what's happening. A tablet market correction...
Something is fishy. I ordered one online from Best Buy Canada at the $99 price, selected my store for pickup (delivery not available), everything went through fine, even gave my credit card info and secret password for my visa, got order number and confirmation, only to have Best Buy cancel the order about 10 minutes later.
So this is either bogus, a fishing attempt to gauge demand, or whoever said there were 250,000 Touchpads lying around is full of BS.
boo hoo
I don't don't really agree with that but that's what's happening on distributions side.
We sell to the Best Buy's, Newegg's, CDW's and so on but I can't speak for the resellers. For all I know they might seek a refund from us.