Adrian Kingsley-Hughes at ZDNet writes that HP has imploded the tablet market by fire-selling the HP Touch for $99. He suggests that, with the exception of the iPad, anyone trying to sell a tablet computer will need to go well below $500 in order to be successful:
“…the stampede-inducing price point for a 16GB tablet is $99. OK, maybe this is a little on the low side, but the price definitely lies between $399 and $99, maybe around the $250 mark.”
I disagree. First, his premise is off-base due to the fact that he seems to ignore WHY the HP Touch is being sold at $99. Sure, he mentions what caused the HP Touch to fail, but he doesn’t CONNECT that to the extreme drop in the price of the device: IT WILL NEVER BE MADE/UPDATED AGAIN! No developers will create new apps for it, the operating system is dead in the water, and the manufacturer probably won’t do any warranty/repair support for the device. So- unless you want it as a cheap toy, why would you buy one?!
How does HP’s failure force everyone else to come down in price on their products when they still offer updates, support, and new apps? Just because ONE washed-up device is going the way of the Do-Do bird does not mean that all others need to lower themselves to compete…