HP TouchPad Pricing – Marketing Win?

As I am sure most of you are already aware HP have decided to sell off or spin off the hardware part of their business.

After the announcement last week, HP cut the price of their TouchPad to approx £90, which took the technology consumer world by storm. Social forums were formed helping the hundreds and thousands of people searching for stock. Although many people were excitedly announcing their ‘steal purchase’ of a TouchPad, others were frustrated when several websites showed malfunctions at checkouts and allowed people to buy and reserve stock that didn’t exist.

The key question though is what really led to this price-cutting or loss leader approach to marketing?And did it give HP the results they were looking for? There has been some debate already about thepotential for a copy-cat strategy with Amazon’s upcoming tablet and projections are already being made about the damage that might have been done to Apple’s iPad2 sales.

Many believe it was a marketing strategy based on diverting spend away from advertising to subsidise a price drop and undercutting the tablet market. Some think it was just a straight forward admission that they couldn’t compete in the market place. What do you think? I guess we may never know what inspired this move and if it worked with a view to spinning off the business, but perhaps time will tell.

By the way, did anyone get their hands on the HP TouchPad? How does it compare to its rivals in the market?

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