HP dropped the bomb in the computing world last week by announcing that they’ll be leaving the hardware business and will most likely outsource or sell Palm’s asset. Then after 24 hours after the announcement, stores like Walmart, Amazon and BestBuy started selling the HP TouchPad at ridiculously low price at $99.00 for the 16 GB model and $149 for the 32GB, which made the Touchpad an instant hit, being sold out of stock on almost on all online stores in less than 24 hours, and we can probably say the same thing to the brick and mortar stores, technically making the HP TouchPad the best selling tablet.
So what can other tablet maker learn from the HP TouchPad Fire sale? Hit the break to find out.
First lets take a look on what HP TouchPad has to offer against another tablet say an iPad 2; for tablet that has a 9.7″ IPS multi-touch screen with dual-core 1.2 GHz Qualcomm Snapdragon APQ8060 processor and 1GB RAM, HP TouchPad is a great device for web surfing and as a ebook reader (Kindle for webOS app). I usually surf web sites, check email, play some causal game and sometimes I listen some songs and watch a movie or two on my iPad. You can actually do all those things using the HP TouchPad and who needs apps when almost every web site today are designed to be tablet friendly.
So what can we learn from the over night (bittersweet) success of HP TouchPad?
-You need to lose money in order to build your user-base.
It has been reported that HP TouchPad cost $318 to create, so if they’re selling them at $99.00, HP is losing at least $219 per tablet, but just look at how many tablet where sold. I’d say create more TouchPad then put a price tag of $200 to $250 and see what the sales number will look like and I bet the more TouchPad are being sold, more app developers will create apps for WebOS.
– People don’t care if the product only has few apps and an abandoned OS, as long as “it just works” people will buy it.
Yes, I did use the phrase from Apple. If a tablet performs just one job but does it well people will buy it. Just take a look at the Amazon Kindle, it’s just a ebook reader but people are buying it, because it works as an ebook reader. In the tablet arena, Motorola Xoom had some not so good reviews, same as the TouchPad but after HP updated and corrected the problem, the tablet was amazing and far better than any android tablet and TechCrunch has an article saying that webOS far better than Android.
– A Web Browser is the deadliest killer app
I already mentioned this above but who needs an App if the same content distributed by an app can be access using your web browser? Here’s an example, AOL has an app to access AOL.com content, but the same content can be access via web browser, just go to AOL.COM, Twitter has a twitter App for both iOS and Android devices but why download and install the twitter app if you can also access your twitter account via twitter.com.
So that’s it for me. I’m sure there are other things out there, so comments are welcome.
Article first published as What Tablet Makers Can Learn From the HP TouchPad Fire Sale on Technorati.
Last modified: August 26, 2011