Wednesday, August 31, 2011

The HP TouchPad still lives?

HP has announced they are going to produce "one last run" of the TouchPad tablets they killed off. The sales of the TouchPads have been incredible at the bargain basement price of $99. Considering the cost of materials in the units, I've heard there are $318 worth of parts in the 32GB version, I can't imagine why HP would do this.

The reason the TouchPads sold so well was the price. If HP expects to sell them all quickly they will have to take big losses on every one they produce. Does it make any sense at all to lose $218 on a product you'll sell for $99? Not to me.

If HP raises the price to over $300 in order to cut their losses, the  they won't have any sales. Buyers will just wait for the price to drop again before they buy. I'm sorry HP, I hate to see the TouchPad die but at least let it go with some dignity.

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