Linked by Thom Holwerda on Mon 22nd Aug 2011 21:19 UTC
PDAs, Cellphones, Wireless Last week, HP killed its webOS devices unit. Over the weekend, the company slashed the prices on the TouchPad. The result? The TouchPad sold out completely in a matter of hours. This confirms what I've been hearing from friends and family: "I'd love a tablet, but I'm not paying laptop money for one."
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RE: Bummed to see this now
by karunko on Tue 23rd Aug 2011 14:22 UTC in reply to "RE[2]: Bummed to see this now"
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You do understand that the reason why HP is getting out of the TouchPad and the desktop PC business (which they currently dominate) is because the margins are like minuscule (5% at best).

That makes for a quick explanation but there are many other factors to consider:

1) Companies (and HP is certainly not the only one in this respect) expect a much quicker turn around for their investment than it used to be. For instance when Xerox funded the Palo Alto Research Center in the early 70s they were expecting a profit in 10 (ten) years! (see "Dealers of Lightning: Xerox Parc and the Dawn of the Computer Age" for some perspective).

2) HP's CEO comes from SAP, a software colossus, and knows absolutely nothing about hardware -- and probably doesn't understand it either.


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