The demise of the Touchpad and the demand for Tablet Technology

The HP Touchpad has been shelved just months after its initial release. Industry reviews were fairly positive. The obvious comparisons to the iPad were made, and also to the Samsung Chromebook but for many critics and pundits, the Touchpad held its own. However, within two months, Hewlett Packard has called time on the tablet.

The reversal of the product comes as a result of a reversal on strategy. At the beginning of the year, HP set out a bold new direction, looking to take on the likes of Apple and the consumer market, shifting away from its traditional corporate stomping ground. But last week, Leo Apotheker, the new Chief Executive at HP, announced a change of the strategy, retreating from an already fiercely competitive B2C marketplace to once again focus on the business world.

While initial sales of the touchpad were less than meteoric, the slash price sales of the discountinued tablet have seen a huge surge in demand. Dixons has described the sales of the Touchpad as "unprecedented". Many online retailers have already sold out of the Touchpad, thanks to prices as low as £89.00 per tablet. Despite the fact that technical support for the Touchpad may not be viable in the long term, it appears that consumers are ready to take the risk and make the most of the discounts on offer.

Thanks to the vastly reduced prices, clued up consumers have snapped up the bargains on offer in a matter of days. While individuals will undoubtedly enjoy the short term benefits of the discounted Touchpad, will it leave a lasting impact for the technology industry? Could the demand for the discontinued tablet suggest that high price tags are stopping many from buying other models readily available on the market?

The Touchpad has sold out without the cool factor and brand association of the iPad, or the technical support of Microsoft. Arguably, a fairly well presented, good performing tablet has made record sales in a matter of days based on price. What would happen if a new entrant to the market could create a tablet more affordable than the current technology leaders? In this environment, is brand really more important than price? After such a brief foray into the consumer space for HP, it would be ironic to think the end result could be far reaching for the industry. However, the example of HP, and the relatively high price tag of current models could encourage greater differentiation, diversity and segmentation in the market. While current demand for tablet technology is at a premium, we predict this is one industry that is set to rapidly change and mature over the coming years. Watch this space...!

News