And the ‘must-have’ tech product of 2011 is… HP’s TouchPad?

By on Sep 15, 2011 at 1:15 PM
Business September 15, 2011

Research firm Canalys recently sent a note to its clients that suggested HP might have better luck spinning off its PC business if it revived its webOS-powered TouchPad tablet. Canalys said the TouchPad could boost the value of HP’s computer division by as much as twofold, given the recent popularity of the tablet at its lower $99 price point. “The TouchPad was overpriced at launch and did not sell,” Canalys said in a note Thursday. “This led HP to draw a premature conclusion that the product category had failed.” Of course, the “hype” surrounding HP’s tablet likely had little to do with the tablet itself. Instead, a retail rush resulted from a fire sale and the media’s coverage of that sale. Read on for more.

Canalys suggested that the new-found popularity of the TouchPad could propel it to be the second most popular tablet in the United States with a 10% market share. “The TouchPad has become the ‘must-have’ technology product of 2011,” Canalys said. The firm seems to be neglecting the fact that all of this interest in HP’s TouchPad stemmed from the slate’s rock-bottom price, however, which is impossible to sustain. HP noted previously that selling its TouchPad inventory off at $99 a pop will cost the company $100 million.

“Perhaps no other technology vendor, apart from Apple, has ever created such hype for a technology product,” Canalys continued. “HP has established a lead in the race to be the number two behind Apple in the pad business but the window of opportunity will begin to close if delays occur.”

HP has suggested that it may resurrect its TouchPad business and said in early September that it was building one last batch of the tablets.

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  • Anonymous

    It’s an ok tablet….
    At $99 dollars. I couldnt help but purchase 2.

    But after the fire sale, they can’t expect to make more than 100 or 150 off of them.

    They could generate more revenue using ads and crap tho! Lol

  • Rudy

    Do you seriously think it costs $100 to build these tablets?

    “The firm seems to be neglecting the fact that all of this interest in HP’s TouchPad stemmed from the slate’s rock-bottom price, however, which is impossible to sustain. HP noted previously that selling its TouchPad inventory off at $99 a pop will cost the company $100 million.”

    Please readers of BGR…please see Todd’s point of how stupid these analysts really are!!!  Stop letting market analysts decide what ‘gadget’ you buy and stick to technical analysts!!!

  • Anonymous

    I wouldn’t be surprised if this was part of the grand strategy.  They couldn’t have spent 100 million in marketing and got this kind of traction.

  • RG

    I’m sure any company can sell comething for free

    • RG

      **something

  • Anonymous

    Falling on the deaf ears of the idiots over at HP.

  • http://www.TheGuruReview.net TGR

    HP’s CEO is a MORON and he should have never canceled the Touchpad  What they should do and will do is two different things.  Too bad, HP was the only true hardware that could have made a divice and made a profit a year of two down the road.   That said, I have am still waiting on my Toucpad and yes, I have been billed just waiting on delivery.  :)

  • http://twitter.com/joe_dorn Joe Dorn

     Darn fine tablet. I use mine daily as well. Beats the **** out of Android.

  • Jared Ronis

    Oh more webOS please. My girlfriend has a pre and we both bought touchpads and I absolutely love them. I hate my android phone. If webOS doesn’t regain some speed its off to windows phone for me. 

  • Anonymous

    Thats some of the worst analysis I’ve ever seen from a “research firm”. It shows a complete lack of understanding of why people bought the devices, which was largely to hack. Sure, there are a lot more of them in the wild then there were but that doesn’t mean anything has really changed; developers are still not putting out apps for it, and the OS is still effectively dead. Anyone buying the OS is going to have a real challenge getting most folks buy it at anything approaching full price.

  • Er2313

    HP touchpad???  You are kidding right?  I would say, Asus Eee Pad Transformer…  No doubt about it…

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