Sure, HP’s TouchPad fire sale could take sales away from low-volume tablet makers and further solidify Apple’s market share. Then again, maybe those low-volume tablet makers — HP included — have been hurting themselves with a pricing structure that isn’t attractive to most consumers.
After dropping the TouchPad’s price to $99 for the 16Gb model and $149 for the 32GB variation, HP has sold an estimated 350,000 units this weekend. That’s comparable to launch weekend sales for Apple’s tablet. Granted, HP’s tablet is discontinued and on clearance, but it shows that many consumers are willing to forget about the iPad, if the price is right.
Here’s the problem with the current system: many entry-level tablets cost somewhere around $500 and that’s the same price as the iPad. I’m guessing most consumers that decide to spend a $500 on a tablet will opt to get an iPad. If other manufacturers want to be competitive with Apple’s tablet, which is in many ways the definitive device on the market, they need to give consumers a reason to pick up their device instead.
That hasn’t really been done until now.
HP offering its discontinued tablet for a one-fifth the cost of Apple’s tablet seems to have registered with many price-conscious and deal-hunting consumers.