The webOS Tablet from HP is not selling well, to put it mildly.
The HP TouchPad, the first webOS tablet, has serious problems finding customers. HP has started to discount the TouchPad pretty much right after launch. Now the price is reduced by $100 already, but that seems not enough. AllThingsD reports that Best Buy is unable to sell the TouchPad. According to the report Best Buy received 270,000 units and only managed to sell 25,000 TouchPads since launch.
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Best Buy is supposed to consider to send back the TouchPad inventory. If the numbers are correct you can see how much fudge manufacturers are able to come up with in sales numbers. In case of Best Buy alone the real sales to consumers (sell-through) are less than 10%. Next time you see sales numbers from gadget makers, keep this in mind unless they explicitely state that the number is sell-through.
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So what is HP going to do about it? WebOS really seems to have lost its momentum when HP bought Palm. Now with the latest webOS update most initial issues should be fixed, but the TouchPad hardware is not considered cutting edge. The HP TouchPad is for instance 5mm thicker than the iPad 2. That's not sexy. Will an even lower price than $399.99 get the HP TouchPad into customer's hands? I have my doubts. HP might be able to bundle the TouchPad to HP PCs and laptops at an ultra-low extra cost, but I do not think an $299.99 HP TouchPad would suddenly sell wildly.