HP to produce one final run of TouchPads to meet ‘unfulfilled demand’

“HP has plans to produce another round of its TouchPad tablets before the year is out, despite its earlier decision to discontinue its mobile hardware products,” Mike Isaac reports for Wired. “‘Despite announcing an end to manufacturing webOS hardware, we have decided to produce one last run of TouchPads to meet unfulfilled demand,’ HP spokesman Mark Budgell wrote in a company blog post. ‘As we know more about how, when, and where TouchPads will be available, we will communicate that here and through e-mail to those who requested notification.'”

“Budgell says it will be a few weeks before devices from the additional run will be available for purchase,” Isaac reports. “The blog post signals further confusion from a company in upheaval.”

“Two weeks ago, HP announced suddenly it would end production on all of its mobile hardware, including the soon to be released Pre 3 and Veer smartphones. The decision also included the company’s iPad competitor, the TouchPad, killed off a mere 49 days after its debut in July. Circulating rumors suggested third-party retailers were sitting on hundreds of thousands of unsold stock,” Isaac reports. “HP followed its announcement by slashing prices on remaining TouchPad inventory, reducing the price of the 16-gigabyte TouchPad to $100, and the 32-gig version to $150.”

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Isaac reports, “There’s no guarantee, however, that HP will continue to sell the last round of tablets at a $100 rate. Hardware teardown web site iSupply speculates that, in terms of components alone, a 16-GB TouchPad costs HP approximately $300 to build. That’s a $200 bath HP is taking on each individual unit sold, not including the cost of labor, shipping and associated expenses.”

Read more in the full article here.

MacDailyNews Take: Hey, yeah, let’s ramp up another run and either lose hundreds of dollars per unit or fill up warehouses again with unsold fake iPads! There’s some real genius business acumen over there in OPIPL (Overpriced Printer Ink Peddler Land). By comparison, Apotheker has achieved the impossible: Making Ballmer look like a competent CEO.

 

[Thanks to MacDailyNews Readers “Fred Mertz” and “Terry O.” for the heads up.]

38 Comments

  1. Considering that HP has already admitted having to write off $1 Billion from this fiasco, (the exact amount of write offs that screwed over Apple’s reputation in 1997), it is likely that HP found some way to save on their losses by completing manufacture of further DouchePads. I expect this has something to do with parts on hand or contracted parts that would only be landfilled otherwise. Or they simply have stockpiled inventory on hand, despite their rhetoric.

    The only “demand” existing for the HP DouchePad would be at the $100 inventory dumping price. It’s an End of Life product with no future.

  2. Perhaps they had a purchase commitment with suppliers they couldn’t wriggle out of. Or the ink fumes are getting to the management, and they have lost there senses.

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