Seeking Alpha

Hewlett-Packard (HPQ) says it will temporarily resume manufacturing of its TouchPad tablet just...

Hewlett-Packard (HPQ) says it will temporarily resume manufacturing of its TouchPad tablet just 11 days after killing it. The resurrection follows a spike in demand after H-P, desperate to clear out unsold inventory, slashed the price from $399 to $99. But the decision to manufacture a second run is puzzling, since the basic TouchPad costs ~$306 to manufacture.
From other sites
Comments (11)
  • Canary Cash
    , contributor
    Comments (471) | Send Message
     
    Is it really that puzzling? Why lose all the money they paid to suppliers, and why miss an opportunity to boost mindshare for WebOS whatever becomes of it?
    31 Aug 2011, 09:25 AM Reply Like
  • HiSpeed
    , contributor
    Comments (1112) | Send Message
     
    If this company has a vision - it's not getting communicated very effectively.
    31 Aug 2011, 09:27 AM Reply Like
  • Michael Clark
    , contributor
    Comments (8858) | Send Message
     
    Talk about your confused leadership.
    31 Aug 2011, 09:27 AM Reply Like
  • wyostocks
    , contributor
    Comments (8229) | Send Message
     
    What a frigging screwed up management.
    Break up the entire company and other companies with real management expertise will each pick up the pieces.
    The current HP board and management team have no clue.
    31 Aug 2011, 09:30 AM Reply Like
  • Richard Mackenzie
    , contributor
    Comments (453) | Send Message
     
    Maybe they're just trying to stick it to Apple by stealing some customers that might otherwise have had to buy an iPad?
    Yeah, I'm kidding, but I can't think of any more reasonable answer as to WHY?
    31 Aug 2011, 09:32 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2039) | Send Message
     
    More then likely they had some signed contracts for large orders that were completed and then their $99 sale blew threw inventory. Now they have to meet their obligations.
    31 Aug 2011, 09:42 AM Reply Like
  • Poor Texan
    , contributor
    Comments (3531) | Send Message
     
    Rhianni 32

     

    Good thought or they may have a lot of paid for raw materials inventory that they can clear with the added demand.
    31 Aug 2011, 12:16 PM Reply Like
  • wyostocks
    , contributor
    Comments (8229) | Send Message
     
    Poor Texan, yeah, but is just goes to show how poorly thought out, planned and executed the decision was.
    31 Aug 2011, 12:36 PM Reply Like
  • akabigd
    , contributor
    Comment (1) | Send Message
     
    You are spot on. They paniced when BB got nasty about the potential returns. A mess for certian, but it happens in alot of different industries.
    To say sorry to the consumer would be, is worse.

     

    Bigd
    1 Sep 2011, 01:33 AM Reply Like
  • Origa
    , contributor
    Comments (545) | Send Message
     
    You can always sell with a loss.
    31 Aug 2011, 12:28 PM Reply Like
  • 20%+YoYgains
    , contributor
    Comment (1) | Send Message
     
    Assuming the parts and material have already been paid for, and that cost is sunk, if the cost of assembly is less than the sale price they may be recovering part of their investment. Alternatively, they may be trying to increase perception of Web OS, or their goodwill.
    3 Sep 2011, 03:28 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector