Has the $99 Touchpad hurt the non iPad market?

[Blakjack]

http://www.zdnet.com/blog/hardware/hp-single-handedly-destroys-non-ipad-tablet-market/14340

With the price of the touchpad going as low 99 bucks, does this price expose the non iPad market tablets? Will consumers who already aren't buying tablets other than iPads, buy competing tablets at prices above let's saaaay $200 ever now?

Should Google, rim, Microsoft, Samsung, etc. Be angry or worried? How do they make a tablet that competes with the iPad at such low price points?

 

[Matthew9559]

Meh, android tablets will be a lot better soon. Hopefully with honeycomb! Just needs more time to grow. For now though, ya the iPad kicks everyone's butt.

 

[labman]

I don't think Apple needs to worry but I think everybody else does! Apple has 95% of the market everybody else is fighting for 5% at the moment drom there it's still a hard fight into Apples World. I would have never bought a $500 pad but a $100 sure why not. Allot of buyers fall into this group.

 

[kalex]

I actually want to see sales figures from 8/20 of iPad vs. Touchpad.

 

[urkel]

IMO, the TouchPad is hurting ALL tablet markets.

1) Non Techies
Somehow the TouchPad became a very popular product among non-techies. And they're scooping them up along with the rest of us. The difference being that we know its a product with shortcomings but to them "its an iPad but cheaper".

2) iPads now seem "Expensive"
A lot of people I know never were in the market for a Tablet (iPad or anything) but bought this. To them then $100 is now how much a tablet should cost so while in the past $500 for an iPad seemed reasonable, to people who were potential customers then $500 now seems ridiculous.

3) Nobody needs Two Tablets
Every TouchPad sold is a potential "Other Brand" tablet sale lost. And since Tablets are considered more a novelty than a necessity then these people aren't going to be back in the Tablet Market anytime soon


So IMO then the TouchPad firesale is going to be a game changer because new considerations have to be made in terms of how these products are priced for the different tiers of customers out there. I really wonder if HP said "If we're going out then lets go out with a bang and disrupt the industry".

 

[Batavian]

IMO, the TouchPad is hurting ALL tablet markets.

1) Non Techies
Somehow the TouchPad became a very popular product among non-techies. And they're scooping them up along with the rest of us. The difference being that we know its a product with shortcomings but to them "its an iPad but cheaper".

2) iPads now seem "Expensive"
A lot of people I know never were in the market for a Tablet (iPad or anything) but bought this. To them then $100 is now how much a tablet should cost so while in the past $500 for an iPad seemed reasonable, to people who were potential customers then $500 now seems ridiculous.

3) Nobody needs Two Tablets
Every TouchPad sold is a potential "Other Brand" tablet sale lost. And since Tablets are considered more a novelty than a necessity then these people aren't going to be back in the Tablet Market anytime soon


So IMO then the TouchPad firesale is going to be a game changer because new considerations have to be made in terms of how these products are priced for the different tiers of customers out there. I really wonder if HP said "If we're going out then lets go out with a bang and disrupt the industry".

Thumbs up to this.

 

[MRU]

Realistically most people other than us techy types do not know are have ever heard of a HP Touchpad, let alone it's price drop. If there was such a great interest in the product in the first place the fire-sale would not have happened.

As much as most vacuum cleaners are called 'Hoovers' and most people refer to non apple MP3 players as 'iPods', I foresee a similar fate of tablets with the iPad being the most recognizable still - there is no absolutely chance the $99 fire-sale is going to hurt Apple sales or Android sales going forward, as in a couple of weeks it will no longer exist commercially anywhere other than craigslist and ebay.

 

[nfl46]

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I returned my iPad 2. I bought the TP for $49 at Staples. I just saved $500 by getting a TP. Sorry, I loved my IPad 2 but it's not $500 better than the TP. The iPad 2 seems so expensive now. Tablets shouldn't be $500+. Ridiculous.

 

[sumone]

snip

Took the words out of my mouth! One of the few MR members I actually recognize by name.

Thumbs up to this.

+1

Realistically most people other than us techy types do not know are have ever heard of a HP Touchpad, let alone it's price drop. If there was such a great interest in the product in the first place the fire-sale would not have happened.

A little high on your horse, are you? Trust me way more people know about this than just "techy types". NOTE: Ever Growing SD Thread.

 

[notjustjay]

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I returned my iPad 2. I bought the TP for $49 at Staples. I just saved $500 by getting a TP. Sorry, I loved my IPad 2 but it's not $500 better than the TP. The iPad 2 seems so expensive now. Tablets shouldn't be $500+. Ridiculous.

Yeah, this is a one-time thing. If the HP TouchPad were retail-priced at $99, then there would certainly be an impact. But even then, the market would still exist. Consider that you can buy a car for under $10,000 yet you can also spend $30,000 or $50,000 or well over $100,000 for a car if you want. Consider the VitaMix and BlendTec ("Will it blend?") blenders which sell for $400+ when you can easily find a blender for under $30 at Wal-Mart.

I spent my Saturday morning trying to find one of these TouchPads but it is sold out everywhere in my area. A lot of press right now but hardly anybody actually owns them. This will all be forgotten in a few more weeks.

 

[urkel]

Realistically most people other than us techy types do not know are have ever heard of a HP Touchpad, let alone it's price drop. If there was such a great interest in the product in the first place the fire-sale would not have happened.

Do you honestly not know any non techies who are aware of this sale? It's a mainstream media story, it's plastered on the most pedestrian sites on the internet and when people go TouchPad hunting then I'm seeing a lot of "average moms and grampas" snatching them up. And even at work I'm hearing people talk about "that $100 tablet thing".

If there was such a great interest in the product in the first place the fire-sale would not have happened.

SERIOUSLY? No offense, but that's some wild reasoning you're using. The interest (and the thread topic) isn't about the PRODUCT, it's about the PRICE. Sure, $100 tablets will be gone In a few weeks but not the "idea" that this is how much they should cost.

 

[labman]

Realistically most people other than us techy types do not know are have ever heard of a HP Touchpad, let alone it's price drop. If there was such a great interest in the product in the first place the fire-sale would not have happened.

there were a 100+ people at the local bestbuy lined up before it opened waiting to try to get one. the 1st one in line got there around midnight. I don't think there was more then 20 in stock. I guess there are allot of nerds near me.

 

[St. Germain]

http://www.zdnet.com/blog/hardware/hp-single-handedly-destroys-non-ipad-tablet-market/14340

With the price of the touchpad going as low 99 bucks, does this price expose the non iPad market tablets? Will consumers who already aren't buying tablets other than iPads, buy competing tablets at prices above let's saaaay $200 ever now?

Should Google, rim, Microsoft, Samsung, etc. Be angry or worried? How do they make a tablet that competes with the iPad at such low price points?

Let's just put it this way, it's going to affect the sales of non-iPads far more than it will affect iPads. The people buying these fire sale Touchpads are geeks, they're not mainstream customers.

 

[sracer]

A little high on your horse, are you? Trust me way more people know about this than just "techy types". NOTE: Ever Growing SD Thread.

You took a very myopic view of what he was saying...
Those Slick Deal folks fully understand that this is the one-time-only clearance deal, not a new price point for tablets. The belief that this firesale blowout will set a new psychological pricepoint is silly.

SERIOUSLY? No offense, but that's some wild reasoning you're using. The interest (and the thread topic) isn't about the PRODUCT, it's about the PRICE. Sure, $100 tablets will be gone In a few weeks but not the "idea" that this is how much they should cost.

Actually, it is not simply about the price... it is about the price DROP. The perception that a $400 device is selling for $100 is what is driving the interest. There have been basement tablets like the Cruz and Pandigital that have sold for $100 (or less) but didn't generate this type buzz and attention... that's because those devices were selling for $150 before the drop to $100. Consumers love a (perceived) bargain, pure and simple.

 

[notjustjay]

You took a very myopic view of what he was saying...
Those Slick Deal folks fully understand that this is the one-time-only clearance deal, not a new price point for tablets. The belief that this firesale blowout will set a new psychological pricepoint is silly.

Exactly. The REASON why there's such a big discussion thread is BECAUSE it's such an incredible price.

I liken this more to an early Black Friday or Boxing Day deal. Everyone knows it's an incredible deal and that's why they line up to get it. If this was a harbinger of things to come (if $99 became the new normal tablet price point) then we'd all just wait a few more weeks for the new pricing.

 

[GoCubsGo]

You took a very myopic view of what he was saying...
Those Slick Deal folks fully understand that this is the one-time-only clearance deal, not a new price point for tablets. The belief that this firesale blowout will set a new psychological pricepoint is silly.


Actually, it is not simply about the price... it is about the price DROP. The perception that a $400 device is selling for $100 is what is driving the interest. There have been basement tablets like the Cruz and Pandigital that have sold for $100 (or less) but didn't generate this type buzz and attention... that's because those devices were selling for $150 before the drop to $100. Consumers love a (perceived) bargain, pure and simple.

I feel the same way. There is no way this firesale is going to depict pricing of tablets going forward. You have what appears to be an abandoned OS on a device that may or may not handle a port of another OS. The sale has been successful because of the price, as everyone is saying, and not because you're getting a stellar iPad competitor on the cheap.

No one gave two shats about the Touchpad until they were selling for $50 to $100 ($50 at Staples). As for non-tech people not knowing anything about this ... my own parents know about it and they still believe the Motorola RAZR is the best flip phone ever.

 

[aneftp]

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I returned my iPad 2. I bought the TP for $49 at Staples. I just saved $500 by getting a TP. Sorry, I loved my IPad 2 but it's not $500 better than the TP. The iPad 2 seems so expensive now. Tablets shouldn't be $500+. Ridiculous.

I am surprised you managed to get the Staples $49 pricing for the 16GB. You got lucky on a technical sales note.

If people read the Sunday ads, all the stores had $50 off TouchPad (Sunday ads were probably made 3 weeks ago). Because it didn't even address the $100 price drop 2 weeks ago.

So Staples really meant to discount $50 off the $500 price. Note $50 off the $100 price of the TouchPad. Their computer system did so $49 for the TouchPad but they were out of stock when I look at it.

Congrats if you managed to get that $49 price.

 

[Syk]

Let's just put it this way, it's going to affect the sales of non-iPads far more than it will affect iPads. The people buying these fire sale Touchpads are geeks, they're not mainstream customers.

Apple has the name so there will be little affect to them for the moment.
I disagree with it's just the geeks buying this. I've been on other forums that aren't tech related and there are threads all over and people scambling to buy one.

At $100 it's a no brainer. Web browser, ereader, PIM. Like urkel said some aren't going to see the need for a 2nd tablet and this fire sale is going to hurt some tablet sales.

 

[sumone]

You took a very myopic view of what he was saying...
Those Slick Deal folks fully understand that this is the one-time-only clearance deal, not a new price point for tablets. The belief that this firesale blowout will set a new psychological pricepoint is silly.

Did you even read what the other person posted? I'm inclined to think you didn't .

 

[urkel]

Actually, it is not simply about the price... it is about the price DROP. The perception that a $400 device is selling for $100 is what is driving the interest. There have been basement tablets like the Cruz and Pandigital that have sold for $100 (or less) but didn't generate this type buzz and attention... that's because those devices were selling for $150 before the drop to $100. Consumers love a (perceived) bargain, pure and simple.

Im not sure about that because if that were true then why aren't the recently price dropped Logitech Revue GoogleTV flying off the shelf? (Answer: Because people DONT want set top boxes but they DO want tablets)

At SlickDeals then we're suckers for a deal and have drawers of things we don't need. But the average public is different. They are aware of tablets and are curious enough to buy but feel priced out of the market. So to them their interest is more about "a modern tablet from a reputable company for $100" than the % discounted. And even if they fail to score one, that price point is etched in their brain.

 

[kdarling]

I really wonder if HP said "If we're going out then lets go out with a bang and disrupt the industry".

Some say that the reason why Best Buy is going to send back their hundreds of thousands of TouchPads to HP, instead of selling them for $99, is precisely because BB fears it would stamp that low tablet price into their customer's brains... thus disrupting their other tablet sales.

 

[vrDrew]

Not really.

First, I think you need to consider what the prospects for Touchpad buyers are. It is, for all intents and purposes, a totally dead-end product.

There won't be any software updates. You will have - at best- a handful of Apps for it. There won't be any accessories. The day you buy it is going to be the best its ever going to be. HP might provide software updates to deal with virus vulnerabilities and such. Then again - maybe they won't.

Are there, worldwide, a couple of hundred thousand cheapskates whose main priorities is buying something for the absolute lowest price? Absolutely. And Apple (or Motorola or Samsung, for that matter) don't need them as customers. So let them snap up the bargain-bin Touchpad.

At this knockdown price, the Touchpad will disappear from store shelves in a week or two. Never to be spoken of again.

It might dissuade a few people from buying a Samsung Galaxy or Motorla Xoom - but it ain't going to take much out of the iPad's sales numbers.

 

[Tarzanman]

There is some misinformation on this thread.

HP is abandoning the hardware business, not WebOS. This is bad for WebOS because so far, HP has been the only company making hardware that runs WebOS.

HP says that they will continue with WebOS development....but if no other hardware companies (Asus, Samsung, HTC, etc) sign up as OEMs, then WebOS will die quietly.

The $100 fire sale price is putting a *temporary* dent in everyone's tablet sales. In two days the HP Touchpad has become the hottest selling electronic devices of any type (including iPods) on Amazon.

People who were thinking of buying a tablet got a Touchpad instead. Since iPad is the market leader, this means that numerically Apple has lost the most sales from this price cut. I know that a lot of you will take offense to that statement, but don't worry... Apple will be fine and so will you .

I got one at Best Buy Sunday morning after I read that the price had dropped in the USA (Canada had been selling them cheap for 2 days already). I arrived at best buy 15 minutes after it opened and was number ~50 in the touchpad line.

A lot of people now own these. The hardware itself isn't perfect (it does get slow when you have a lot of stuff open), but WebOS is every bit as "polished" and "pretty" as iOS. Once you get used to swiping around windows.... going back to Android's/iOS's window management systems will seem like a slight step backwards (I also own a Galaxy Tab 7").

All in all, DEFINITELY worth $100. WebOS is ready for prime time, and this weekend will go a long way for exposing the OS to people who hadn't really ever dabbled with it (or unfortunately bought a Pixi and didnt have any good experiences with it).

 

[Gregintosh]

Speaking as someone who does marketing for a living and has a master's degree in it, I would say my assessment would be that this will make people think twice about prices of tablets.

The problem with consumer psychology is that a big sale makes people want to wait for the next one. Once people know "what's possible" by waiting they are less apt to buy something at full price unless they really need it (and let's face it, tablets are a total "nice to have" product and not a "must have" product). This is going to affect the iPad knock off market more than Apple, though.

As far as iPad sales, they will not be affected much because Apple is perceived as a premium brand and so a high price is expected (and in fact necessary to upkeep the premium image; if Apple were to drop iPads to $299 or $349 they may very well lose their premium image over time).

I think it will also make companies think twice about their pricing and positioning. Apple competitors now know how to compete with Apple on market share. Seeing HP sell hundreds of thousands of units in one weekend tells them that if they price their tablets much lower than the iPad they can get market share.

However, the key is that the tablets still need to be decent. The reason $99 or $149 tablets aren't selling now is because they are crap (to get to that price point their bill of materials must have been $75 or so).

The HP TouchPad is actually a much higher quality than those. Now a $99 price point is not sustainable for the Touchpad given its BOM being around $280-$300 or so, but a $299 or $349 price point would have helped a lot in generating sales.

I think tablets priced around $299 or $349 but with the same quality as the Xoom, TouchPad, Galaxy, etc. would sell better, plus they would be reviewed better.

The main reason HP's touchpad was not reviewed well is because as a $499 tablet it is just not as good as the iPad which is priced the same. However, if HP priced it at $299 or $349 from the get go, reviewers would have cut it a lot more slack and better reviews would have led to more sales.

I think a $299 price would actually be a sweet spot since $299 would be perceived psychologically as MUCH cheaper than $3XX.

So no, I don't think this has HURT the market, I think it EDUCATED the tablet market (both the consumer and manufacturer sides)

 

[urkel]

The problem with consumer psychology is that a big sale makes people want to wait for the next one. Once people know "what's possible" by waiting they are less apt to buy something at full price unless they really need it (and let's face it, tablets are a total "nice to have" product and not a "must have" product). This is going to affect the iPad knock off market more than Apple, though.

Boom. Except the ending. Apple won't be "hurt" by this because they've got mindshare, marketshare and ecosystem. BUT, every knock-off tablet sold is the loss of a potential iPad customer because nobody needs two tablets. And its going to be tough for some to say "The iPad 4 is worth 6x more than that TouchPad I bought in 2011".

I think it will also make companies think twice about their pricing and positioning. Apple competitors now know how to compete with Apple on market share. Seeing HP sell hundreds of thousands of units in one weekend tells them that if they price their tablets much lower than the iPad they can get market share.

Maybe the lesson learned is that Apps aren't everything. People act as if the lack of Apps = Useless, but in reality then a browser, PIM, and social networking is all most people need. So I think we've learned that there IS a $150-200 basic tablet market out there.

The main reason HP's touchpad was not reviewed well is because as a $499 tablet it is just not as good as the iPad which is priced the same. However, if HP priced it at $299 or $349 from the get go, reviewers would have cut it a lot more slack and better reviews would have led to more sales.

HP's biggest stumble is thinking they should try to match Apple pricing. Id love to see them get re-reviewed as lower cost products.