In my last post I informed you about HP’s announcement that it was discontinuing the TouchPad less than 2 months after introducing it.
Then HP dropped the price from the already discounted $399 to $99. And I missed it. I heard about this too late to buy one. In fact, I chuckled all weekend as I saw commercials on TV showing the $399 price. Damn!!!! I want one.
O.K. So, you must know by now that everyone sold out of the TouchPad when its price dropped to $99 (for 16GB) and $149 (for 32GB). So why doesn’t HP get back into the TouchPad game.
Hear me out… the TouchPad was not selling — Best Buy asked HP to take them back. But that was at a price of $499 (or $399). Once they dropped to 100 bucks… Ba-Bamm! They flew off the shelves. And keep this in mind… they flew off the shelves even though it was a dead product.
If a discontinued tablet at $99 is better than an iPad at $499, how much should the price be for HP to outsell Apple with a fully supported product. HP could bring the TouchPad back at $199 for 16GB and $249 for 32GB and it would still sell like hot cakes.
They could charge the extra $100 because it is not a dead product. And they would sell so many of them that the Apple iPad would instantly have real competition. Remember, developers go where the numbers are. That’s why so many companies are writing software and games for the iPad. If the numbers swung toward the TouchPad because it was less than half the price of that Apple product… where would the apps be? Yep… in WebOS… on the TouchPad.
I wrote about this before. If you want to beat Apple you have to be better… and cheaper. HP just proved that you can beat Apple by being a lot cheaper, and only have to be good enough. They should continue the TouchPad at $199 or less… and watch the flood gates continue until Apple is playing catch up.
If you sell it cheap… the customers and developers will come.
One more thing… Apple makes 30% on every app sale… for doing nothing but having an App Store. HP could do the same thing. That’s how you make the profit. You sell the hardware at a loss… to beat Apple… then collect only 20% of the app sales… to undercut Apple again. This will bring all the people to your platform and you win.
Will HP have the guts to finish what they started? NO! Maybe BlackBerry or one of the Android tablet makers will take up the gauntlet that HP threw down.