Great post, Bolaji. It indeed did show that there are ways to compete with Apple. There are probably a certain amount of consumers who were originally thinking of buying an iPad that were able to get the TouchPad at this low price. This has taken some sales away from Apple.
While you are correct that future discounts will be coming due to the holiday season, it will be hard to find a deal like this unless somebody is closing shop. I believe it cost HP close to $350 to produce these, though I'm not positive with that number.
The Touchpad is still a great piece of hardware. You've got a 1.2 Ghz dual processor plus 1Gb of memory. HP has announced they aren't completely getting rid of WebOS just yet, they will still offer support.
There are also many techies that are in the process of porting over the Android system to the Touchpad. I know of one site that was promoting this (Touch-Droid.com). I'm sure many people will do this to now have an Android tablet to replace WebOs. The jury is still out on if we will do this to ours, though probably not since we don't think WebOs is that bad of a system. Plus with web access, who cares about how many apps, when you can surf the web just like your laptop.
I'm sure prices will fall as competitors lose ground and sales, the only question will be whose the next to give up.
Yes, the Internet was certainly all abuzz with what a great deal the TouchPad was, but I passed. Why? Because by the end of the year I'll be able to get a better deal.
Yes, the TouchPad was mostly discounted do to HP's larger company-wide issues, but the fact the tablet market is already flooded with too many products was the secondary factor: the demand for the TouchPad at its original price point just wasn't there.
Fast forward a few months (keep in mind it's only August and holiday season is not yet upon us): there will be even more Android tablets coming onto the market, and not a whole lot of interested customers: it's essentially pointless to buy these products if the superior iPad is within the same ballpark.
So the result will be a glut of unsold Android tablets. I'll be more interested in those because they'll have better app support. While I'm not going to be bold enough to predict that we'll see a discounted Android tablet at the $99 price point by the end of the year, I do feel quite confident predicting we'll see at least one reduced to $149-$199.
We can just patiently wait to see Apple be beaten one day by Android? Everything is possible. It is true that Apple`s products are very expensive or even overpriced. But my feeling is that if Apple feels the need to cut prices to remain competitive, they can do so as well. They have enough cash to fight for long enough to drive any competitor out of business. But maybe not Google.
@Kunmi - that is very true, however, the reason the prices of Flat Screen TVs have come down so much is because their is ample competition in the market. If you look at Apple's products however, the iPhone, iPod, iTouch, etc., they have kept a high price in the market over the years and demanded a premium because the technology is superior and there are no direct competitors that can perform what they can (with the possible exception of the Android phones). Competition is key to price reduction...
Tvotapka , I do not believe that a standard is difficult to be beaten. The person that made the first shot may not as perfect as the person who will be making the second shot. There is no standard that will not have a room for improvement. That could be an advantage for any company that may want to challenge the current product.
When the flat screen TV first came out, it was really expenssive; now you can get it for buy one get one free. Tablet is expensive and many people can not afford it but I strongly beilve that there is a technology out there that can be developed to mimic the tablet with the same capability and at a cheaper rate. That will surely come. It is just the matter of time
Maybe the answer is to make a lower end tablet? A tablet with some basic capabilities that sells for a lot less than the iPad, doesn't directly compete with the iPad but can possibly take advantage of the market base that can't afford the iPad.
I have an Android phone and the app market there rivals the iPhone. I wonder how difficult it is to tweak these apps for the tablets? You are right though in that right now with the sales of the iPad taking over their competitors, developers know to invest their time with the iPad. That is a shame though, from a consumer perspective, it would be really nice to have a competitive market out there.
@eemom & @Parser, Apparently, Bolaji isn't the only one who thinks price is going to be a factor in the battle for supremacy in the tablet market. Here's a quote from another article I read today:
The main Google Android tablets, made by Samsung and Motorola, are pitched at around the same £400-ish price point as the iPad. But, put together with all the other Android tablets, it’s estimated they are outsold by Apple’s devices eight to one.
Given Andoid makers’ weaker marketing, and, crucially, fewer apps, that ratio seems unlikely to change significantly. So the problem becomes circular: the user base is too small for app developers to invest in, so users buy an iPad because there are more apps and the user base gets even smaller relative to Apple’s.
In part this phenomenon is Apple’s reward for getting to market first, but Android tablet makers must find a way of breaking the cycle to avoid the TouchPad’s fate.
Click here for the full article. Nobody is saying competitors will win only on price but they must inject this into their planning.
Price is indeed a huge factor. I know a lot of people that would like to have the iPAD but don't make the decision to buy based on the huge $ investment. I purchased an iPad early and I do love it but since I've bought it, versions are available through Verizon, and the iPad 2 came out. The investment in the original iPad is too big for me to upgrade, at least for now.
I wonder how the performance of the TouchPad compares against the iPad. I understand that the price point is really attractive, however, if that price is sustainable and HP would have continued to manufacture the TouchPad, I wonder if it would have continued doing well against the iPad. Consumer feedback would have to be favorable for the TouchPad to sustain huge sales and growth.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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