HP's TouchPad fire sale: The fallout
Tablet pricing is shot. If the TouchPad—a flawed device that still managed to have a lot of redeeming qualities—calls for an exit after a few weeks and a $99 to $149 price tag what does that say for all the other Apple iPad rivals? It’s no wonder retailers initially balked at HP’s prices. If the TouchPad is ultimately worth $99, what’s an Android tablet worth? How about $250 max? HP’s TouchPad experiment showed what price matters to consumers and the path to market share gains on Apple. The rub: No tablet maker can make money at HP’s fire sale prices. Something has to give. BetaNews’ Joe Wilcox argued that tablet pricing is ruined after HP’s fire sale. I’m inclined to agree.
I sure hope so. Tablets are overpriced to begin with. It'll be interesting to see if this fire sale will affect Amazon's pricing on its forthcoming tablets.