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    Hewlett-Packard Reduces TouchPad Price by $100

    By Barry Levine, newsfactor.com | Newsfactor.com – Fri, Aug 5, 2011
    In a move to bolster the visibility and sales of its tablet, Hewlett-Packard is temporarily dropping the price of its TouchPad by $100. The TouchPad, launched in July, now has a sale price of $399 for the 16GB version, and $499 for the 32GB model.

    An earlier promotion through Sept. 10 took $50 off the price. The $100 discount is available from HP or Staples through Aug. 7. There's also a one-day sale on the Amazon.com-owned Woot shopping site, which knocks an additional $20 off the 16GB tablet.

    'Very Smart'

    HP hasn't released sales figures for its webOS-based tablet, but the heavy discount one month after launch doesn't suggest it has been flying off shelves.

    Although HP promised the TouchPad would offer features that Apple's category-leading iPad doesn't, the TouchPad received poor reviews when it was first released. The criticism pointed out the product's bugginess, weight and dearth of applications.

    Following that initial criticism, HP executive Jon Rubinstein -- formerly CEO of Palm, where HP got the webOS platform when it bought that company -- sent a letter to HP employees pointing out that Apple's Mac OS X was also hit with complaints about bugs, a lack of apps, and sluggishness when it was first released. Rubinstein helped create the iPod at Apple.

    Avi Greengart, an analyst with industry research firm Current Analysis, said the price cut for the TouchPad is "very smart" and "a great way to draw attention" to the product.

    He noted that HP was "terribly premature in launching the TouchPad in a buggy state" when there were a variety of "usability issues, stuttering in application launches," and other problems. The company should simply have delayed the launch until now, he said, but it wanted to stake a position in the race to become the iPad's main competitor.

    Barnes & Noble, Samsung

    Greengart said a recent software update seems to have corrected some, if not most, of the TouchPad issues.

    Some industry observers have noted that, while there is an appetite for a non-Apple tablet, many potential purchasers expect a significantly lower price. Greengart pointed out that there are some tablets available for $399, but the biggest price differential is with Barnes & Noble's nook color. Although sold primarily as an e-reader, he said, the nook's $249 price and tablet-like specs make it a kind of smaller tablet.

    He said HP's temporary price drop doesn't change the fact that "it doesn't have as many apps as the iPad, and that the iPad is still the tablet of choice." But, he added, the TouchPad is highly visual and multitasking, and could be a good choice for users who primarily want to do e-mail and web browsing.

    Samsung is also trying to do something of a reboot for its tablet, the 10.1-inch Galaxy Tab. Earlier this week, it released a software update to enhance the interface and provide features that appeal to consumers and business users. A Samsung executive told news media that the update was based on research about what users want -- ease of use, visual appeal, more fun, and features that will enhance its usefulness for businesses.

     

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