Why Is HP Producing Now More TouchPads?

Posted: Aug 31 2011, 8:23am CDT | by , Updated: Aug 31 2011, 8:32am CDT, in News | Tablets

 

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HP makes confusing statements about the fate of the webOS HP TouchPad.

About two weeks ago HP surprised with the announcement to kill all their webOS devices. Two days after the announcement HP said to liquidate the HP TouchPad inventory at $99.99 for the 16GB model. What started after that was a shopping frenzy as suddenly everybody wanted a TouchPad. The TouchPad become a hard to find item over night. As it stands now the TouchPad is sold out. Scalpers and retailers who want to make an extra buck are selling them at higher prices.

As reported yesterday HP has decided to produce more TouchPads and sell them on their HP Online Store. On top of that Todd Bradley, HP Personal Systems Group head said that tablets are part of the product portfolio of the standalone PC Division he would like to lead. Reuters titled the report including the interview with "HP may resurrect TouchPad...." This obviously not what he said. HP would sure make another tablet, but it most likely will not run webOS. HP will jump on the Microsoft Windows 8 tablet band wagon like every other PC maker.

All this is a bit confusing. HP could have appeared more organized by not going to produce another batch of TouchPads. Why are they doing it? At $99.99 they are losing about $200 on each. Is it a marketing stunt? HP does not reveal how many TouchPads they are producing. Maybe its just a few hundred?

Most of the sales of the TouchPad are going to hurt the Android tablet camp. Android is also right now ported to the TouchPad. Is HP intending to flood the market with more bargain TouchPads to hurt Android tablet makers? Or is HP a charity organization that likes to help out cash strapped gadget fans with a cheap tablet?

After I had finished this report I stumbled over this story on Digitimes. The reason for the new TouchPad production run could actually be the component suppliers. When HP suddenly killed the TouchPad they got stock with pre-produced component inventory. A 7-inch TouchPad was supposed to go in production by end of Q3. Maybe HP is working with suppliers to make more TouchPads from the existing component stocks to not burn the relationships.

Post your take on why HP is making more TouchPads below or watch this Wilson Lamarr Video on the topic that boils it down for you.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com.

 

 

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