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HP announced it will manufacture "one last run" of its TouchPad tablet device after intense consumer demand wiped out inventory on the deeply discounted devices, but did not say whether the new TouchPad batch will carry fire-sale prices. "Despite announcing an end to manufacturing WebOS hardware, we have decided to produce one last run of TouchPads to meet unfulfilled demand," said Mark Budgell, HP social media strategist, yesterday. "We don't know exactly when these units will be available or how many we'll get, and we can't promise we'll have enough for everyone. We do know that it will be at least a few weeks before you can purchase." On Monday, HP suggested it would produce more sought-after TouchPads after overwhelming demand contradicted the company's earlier plans to scrap its WebOS system, which runs the tablet. Budgell said HP will make "a limited quantity" of the tablets "during our fourth fiscal quarter 2011, which ends October 31," and will leave the pricing to each retailer to manage. It's unclear where HP plans to offer this new stock of TouchPads; the recent fire sale stormed U.S. and select European markets. The TouchPad, which only came out two months ago, retailed for $500 for the 16 gigabyte version and $600 for the model with 32 gigabytes. Just over a week ago, HP said it was dropping the prices to $100 and $150, respectively. While the sale was definitely efficient in depleting supply, investors are concerned how the sell-off will affect the company in the long term. Analyst Benedict Evans estimates HP may have sold between 200,000 and 300,000 in the past ten days of the fire sale. Reports indicate it costs about $300 to assemble a TouchPad, more than double the sale price, leading to speculation the price tag for this adventure may cost HP as much as $100 million. While making more inventory of a product destined to be discontinued may be a strange strategy, with rumors of the TouchPad's OS being bought by a third party ramping up, building the tablet's user base may make the software more attractive to sell or license. Finally, in a nod to how frenzied the consumer demand has been, Budgell is encouraging interested parties to follow him on Twitter at @MarkatHP for the latest developments. |
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