Ever since HP launched a fire sale for the TouchPad priced at $99.99, the webOS tablet has become wildly popular. It immediately became very difficult to find a 16GB TouchPad priced at $99.99. HP announced this week that they will make more TouchPads and sell it on the HP Online Store in the coming weeks. Most likely HP wants to make good with suppliers that stock piled components for a new 7-inch TouchPad. As the $99 TouchPad deal is basically not available anymore, consumers go to eBay or Amazon market place to buy a TouchPad. What is interesting is that they are willing to pay around $230 for the 16GB TouchPad and about $270 for the 32GB model (source: eBay and our internal records of Amazon sales). Apparently these prices is what consumers still think is a great deal for the TouchPad despite it is a discontinued product.
Amazon should take a close look at what is happening here. As reported Amazon is supposed to attack Apple's iPad via low pricing. This is very hard. Current Android Tablet vendors failed at. Amazon is rumored to launch this year a 7-inch Tablet. Based on the prices the HP TouchPad is going for, Amazon should aim at a $250 price point for their 7-inch Tablet. This would be half of what the entry-level iPad is going for. At $250 the Amazon Tablet could go off like a rocket and likely selling out before Christmas comes around.