HP Drops the Tablet… and PCs?

Filed in Uncategorized by on August 19, 2011 0 Comments

After just 49 days on the market, the HP tablet is retiring. After a disappointing product release, Hewlett-Packard struggled to find a last-minute strategy that would drive sales. Their solution was to drop the price of the Touchpad by $100, which put the company in a precarious profit position. According to CEO Leo Apotheker, the price drop meant that the tablets were being sold with absolutely no profit.

The TouchPad is not the only casualty the computer giant announced. The tablet’s webOS platform has been deemed a failure, with not enough apps and not enough support. So, all HP devices running on the webOS platform are being pulled from the market; this includes smartphones.

In addition to leaving the tablet and phone markets, HP is also discussing plans to abandon the personal computer market. Apotheker said, “The velocity of change in the personal device marketplace continues to increase, and the competitive landscape is growing increasingly more complex, especially around the personal computing arena. There’s a clear secular movement in the consumer PC space. The impact of the economy has impacted consumer sales …”

Apotheker hinted that enterprise, business-to-business sales are more profitable and a core competency for HP, while companies like Apple are more suited for consumer products. Considering that Apple sold more than 25 million iPads in the first six months of 2011, Apotheker could be onto something.

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