HP's Defunct and Failed TouchPad is No. 2 Tablet Behind iPad

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News Posted: Tue, Nov 22 2011 3:21 PM
All hail the TouchPad, the second most popular tablet in the universe! Wait, what? Believe it or not (and we wouldn't blame you if you didn't), Hewlett-Packard has sold more tablets so far in 2011 than any other company, save for Apple, according to market research firm The NPD Group. Of course, HP unintentionally 'cheated' to get there by discontinuing its TouchPad and selling off remaining inventory in a $99 (16GB) and $149 (32GB) fire sale, but the fact that HP killed off its webOS hardware division only makes this all the more remarkable.

"If you look at the tablet market without Apple there are a number of high-profile brands vying for that number two spot," said Stephen Baker, vice president of industry analysis at NPD. "According to NPD’s Consumer Tracking Service, 76 percent of consumers who purchased a non-Apple tablet didn’t even consider the iPad, an indication that a large group of consumers are looking for alternatives, and an opportunity for the rest of the market to grow their business."

HP slipped into second place by claiming a 17 percent share of the tablet market, enough to edge out Samsung (No. 3) with 16 percent. Asus (No. 4) snagged 10 percent of the market, and Motorola (No. 5) grabbed a 9 percent slice of the pie that's dominated by Apple (No. 1).

Tablet makers take note, there's definitely a market for non-iPad tablets, you just have to find the right price point. It will be interesting to see if either Amazon (Kindle Fire, $199) or Barnes & Noble (Nook Tablet, $249) have done that.
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AKwyn replied on Tue, Nov 22 2011 3:23 PM

So I'm wondering... Why didn't they just make more of the TouchPad and just market it at the same price they were marketing it before; as I said before, all these tablets really need is a competitive price point; which I see Amazon has already taken to heart...

Shame, the TouchPad could of meant something, oh well... I'm guessing that second place share will be enough of a goodbye for the all mighty TouchPad.


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timaeus replied on Tue, Nov 22 2011 3:48 PM

I'm not sure why this is supposed to be surprising. I've always thought tablets were pretty cool, but would never pay $500 for one. $100 is a great price point. I'd have to think on $200. I am curious to see how the Kindle Fire ends up doing.

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Not surprising considering they sold their entire inventory of tablets. I am sure if the iPad was $150 dollars they would have no inventory left either. It looks like we are getting closer to that $150 price point with the Kindle Fire.

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LLeCompte replied on Tue, Nov 22 2011 8:33 PM

if i were them i would see about keeping it alive and selling it at that price point. But did they make any money off of selling it that cheap?

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Manduh replied on Tue, Nov 22 2011 11:56 PM

That's pretty good, but of course not surprising with the crazy price drop!!

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rapid1 replied on Wed, Nov 23 2011 1:22 PM

From what I understood when they did that BB firesale they were loosing money on every unit sold. The big thing that Amazon gets and has an advantage over pretty much everyone else except maybe the Apple App store is the media. That is why they can sell there nice fire unit for less than it costs them. They know as well as equip it with Amazon bound purchasing avenues. Therefore as soon as someone gets one and Amazon looses that $2.50 or whatever it is it's owner buys a few songs and a book that amazon has already paid to it's publisher 10 fold and it therefore costs them nothing anymore.

HP does not have that avenue therefore added value for them is a loosing battle as the media purchased will is or would most likely be purchased from Amazon or someone like them. I think this model is actually in itself exceptionally strong for Amazon. They have also positioned themselves very, very well for the future with this. In the end HP has a dead product they sell for a loss. In the end for Amazon they sell it for an initial loss ad that customer then most likely buy $10-15 dollars worth of profitable media from amazon. You drop that 2-3 dollar loss and amazon makes 7-12 minimum on every unit they sell and that is pure profit for them.

The working of that for HP is a total loss. The working of it for Amazon and the model which is solely there's really is awesome for them. The only one that can come close is the Barnes and Noble NOOK from what I see!

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