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$300 To Make, On Sale For $99: Why Is Hp In The Tablet Business?

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http://www.independent.co.uk/life-style/gadgets-and-tech/news/300-to-make-on-sale-for-99-why-is-hp-in-the-tablet-business-2347190.html

It was the product which wasn't meant to be. Designed to rival Apple's phenomenally successful iPad, Hewlett Packard's TouchPad was launched exactly two months ago, and met with the sort of reception of which retail nightmares are made.

A mere 12,000 were sold in the first month of European release, a figure which fell even further in the weeks that followed. After seven weeks, it was announced that the TouchPad would be discontinued – a humiliating retreat by an already ailing company.

But when retailers were told they could sell the remaining tablets at a quarter of the original price – $99, instead of the iPad price-matching $399 and $499 – the TouchPad's fortunes began to magically turn around. The sum was not enough to cover manufacturing costs, but was sufficient to prompt a buying bonanza. Cut-price TouchPads flew off the shelves, with lengthy queues forming outside stockists and websites experiencing frenzied demand.

http://www.independent.co.uk/opinion/commentators/rhodri-marsden-the-lesson-is-be-careful-if-you-take-on-apple-2347191.html

Has anyone bought one?

Pricing it at the Ipad level was clearly never going to work, it seems HP needs to cut it's manufacturing costs to be able to complete, people it seems will buy at the lower price point. Perhaps $200 is a more realistic price to aim for?

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Has anyone bought one?

Picked up a 32 gig model for £115.

Very nice piece of kit. Slow to boot but great for browsing, email, ebooks, all the basics.

Very small Apps store but as an introduction to tablets, can't fault it.

The notion that HP will have another production run is a bit bizarre. The price I paid was below manufacturing costs, so I doubt they'll be sold at that price again.

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Pricing it at the Ipad level was clearly never going to work, it seems HP needs to cut it's manufacturing costs to be able to complete, people it seems will buy at the lower price point. Perhaps $200 is a more realistic price to aim for?

I find this whole thing rather unnerving. HP Buys Accenture - for £6bn - which has to be far more than it would cost to out-compete... then it decides that it should get out of the tablet business - and fire-sale its inventory. Perhaps all that made sense (though it stinks of incompetence...) and now they're talking about making more of the tablets it's abandoned by selling at dramatically below cost to 'fill demand' while accepting a loss on each. If I were more of a cynic, I'd argue that their management have given up with the idea of pursuing profit... do they know something we don't?

BTW - At £115, I'd buy one - and I'm a real skinflint when it comes to buying technology.

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though it stinks of incompetence...

If I were a HP shareholder I'd be very worried about now.

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I find this whole thing rather unnerving. HP Buys Accenture - for £6bn - which has to be far more than it would cost to out-compete... then it decides that it should get out of the tablet business - and fire-sale its inventory. Perhaps all that made sense (though it stinks of incompetence...) and now they're talking about making more of the tablets it's abandoned by selling at dramatically below cost to 'fill demand' while accepting a loss on each. If I were more of a cynic, I'd argue that their management have given up with the idea of pursuing profit... do they know something we don't?

BTW - At £115, I'd buy one - and I'm a real skinflint when it comes to buying technology.

When did HP buy Accenture? Link please...

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When did HP buy Accenture? Link please...

They bought Autonomy, a UK software company, not Accenture which is one of their key competitors in IT services/outsourcing etc (and has a market cap of far far more than £6bn),

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Picked up a 32 gig model for £115.

Very nice piece of kit. Slow to boot but great for browsing, email, ebooks, all the basics.

Very small Apps store but as an introduction to tablets, can't fault it.

The notion that HP will have another production run is a bit bizarre. The price I paid was below manufacturing costs, so I doubt they'll be sold at that price again.

Oooh, i'd have one at that price. Where did you get it from? A quick Google doesn't show any that cheap (they seem to be about £240 for the 32Gb).

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Oooh, i'd have one at that price. Where did you get it from? A quick Google doesn't show any that cheap (they seem to be about £240 for the 32Gb).

It was from Carphonewarehouse.

Other places were selling them at that price too, in fact it caused a bit of a meltdown.

TouchPad goldrush causes online retailer chaos

Discount HP TouchPad Demand Crashes UK Sites

Clamour for HP Touchpads Turns Nasty

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the reason they are so cheap is that apple got them banned from making more on IP grounds.

so I think they have been discontinued.

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Can i do everything i can do with a normal laptop with them?

can you hook them up to a keyboard?

Might buy one if so.

Never considered one as they always seemed expensive and not as good as laptops, but at that price....

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Basically Android won the battle for the OS to go up against Apple. HP's offering lost, so their tablets are not worth much unless you stick Android on them.

Most people buying them have been rooting them and putting Android on.

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I bought a few (for work) once they dropped to £89. I reserved them online, but faced a near-riot situation outside pc world when I went to pick them up.

They are a bargain for that price but they are nowhere near as good as the iPad, both in terms of shininess and user interface, so I'm not surprised they didn't sell at the same price as the iPad. some of the techie guys at work are waiting for a hack to install android, but I reckon webos is very good. It's a pity it's not worked out for them, but Apple are just a little bit too far ahead at the moment.

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Wiki

http://en.wikipedia.org/wiki/E.T._the_Extra-Terrestrial_%28video_game%29

and http://en.wikipedia.org/wiki/North_American_video_game_crash_of_1983

Overinvestment and over anticipation of demand.

Read about the Video game tech crash of 1983. Many companies folded in the bust. Atari made so many ET games that it could not sell it had to dump them in tips. Atari nearly went bust.

I saw brand new unopened copies of ET for the Atari 2600 in poundland a few years ago. I should have bought a piece of history!

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So if i buy one can i word process, surf internet, windows and so forth?

It doesnt run windows, but you can surf the web, do email and watch videos (youtube, iplayer etc), read ebooks and skype. Tablets are not particularly good for writing long docs.

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actually the real reason why its so cheap is that they are dumping all their stock and it is being discontinued - after just a month or so after launch.

HP have recently announced they are exiting the PC, phone and tablet business - i.e all their hardware businesses and focusing purely on software and business to business - almost trying to copy what IBM did. thats why theyre buying autonomy.

even though HP are the world biggest PC makers they feel that the margins in hardware and growth here are just too low and they are abandoning this sector. theyve been treading water for the last 10 years.

as a result they are winding their phone and tablet business down, with plans to sell it off. these products are ending.

HP will no longer be a PC company believe it or not.

dixons are even refunding people that have previously bought the tablets as the operating system will no longer be supported.

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HP will no longer be a PC company believe it or not.

It's quite a gamble - their existing software is utterly awful... their hardware (while it's a very price sensitive market and thin margins a necessary consequence of aggressive competition) conversely, has always been more than adequate.

Perhaps their real problem is that they're too large? I'm sure they'd survive if they'd plan to sell small volumes of high quality kit... Maybe, rather than try to buy a new strategy (which seems so unlikely to work it's painful) they should have sold assets; down-sized and paid big dividends?

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actually the real reason why its so cheap is that they are dumping all their stock and it is being discontinued - after just a month or so after launch.

HP have recently announced they are exiting the PC, phone and tablet business - i.e all their hardware businesses and focusing purely on software and business to business - almost trying to copy what IBM did. thats why theyre buying autonomy.

even though HP are the world biggest PC makers they feel that the margins in hardware and growth here are just too low and they are abandoning this sector. theyve been treading water for the last 10 years.

as a result they are winding their phone and tablet business down, with plans to sell it off. these products are ending.

HP will no longer be a PC company believe it or not.

dixons are even refunding people that have previously bought the tablets as the operating system will no longer be supported.

What about the server business? Not that long ago they bought out Compaq.

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What about the server business? Not that long ago they bought out Compaq.

im not 100% sure because theyre keeping some business related hardware divisions i believe, such as printers.

theyre trying to focus on the higher margin "business solutions" which i guess servers would fall into that category.

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They are going to continue to make enterprise hardware, i.e. storage, servers and the like.

There is no confirmation yet that they are going to exit the PC business, just a possibility.

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I bought the 32gb version last week for £115 too. Fairly hard to get my hands on one - they went really fast. Glad I did tho. Not quite as good as an iPad but at 1/4 the price that's totally acceptable. Great for surfing the net on in bed. It's one of those devices that you don't realise how handy they are till you have one.

Agree that lack of apps is a bit of a downer but there should be a version of Google's Android available for it soon. Will tie me over a couple of years until tablets mature.

I agree tho, not quite sure what HP's motivations are. Once in a CPU-generation bargain tho.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


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