The decision to sell off TouchPads at $99 and $149 whipped consumers into a frenzy, HP’s own website quickly sold out of its remaining stock, as Walmart and other major US retailers saw units fly off the shelves. In just over 24 hours, it’s reported that
over 350,000 devices were bought – one Best Buy store in California telling me that they sound 140 TouchPads in an hour – recouping some of the $100 million in losses HP is predicted to incur as a result of reimbursing sales partners but also those who paid full price for the TouchPad prior to its death notice.
The computing giant is expected to issue the same order to its partners worldwide, spurring massive demand for a device, including consumers who may have never considered buying a tablet before. With the price so low, many will buy the device simply to own a “modern” tablet, even if it might not be fully supported in the future.
Ultimately, it’s a testament to what Apple has done with the iPad; it seems consumers only want to buy a tablet device if it is made by the world’s biggest technology company. However, as with any market leading product, there will be no shortage of vendors aiming to mimic what Steve Jobs and co. did with their new mobile devices, one of them being Amazon.
The world’s biggest online retailer is soon to launch its own tablet devices, but instead of competing directly on strength of software and build quality, the company is almost certainly going to utilise the business model that ensured its Kindle eader became a roaring success – undercut each one of its rivals on price and then recoup its losses with additional value-added services.