Linked by David Adams on Wed 17th Aug 2011 17:46 UTC
PDAs, Cellphones, Wireless Ars Technica is reporting that US Retailer Best Buy has been able to sell less than 10% of the TouchPad tablets that it ordered from HP, and now wants HP to take them back. Similarly, deal-a-day site Woot offered TouchPads at a very aggressive price, and only managed to sell 612 of them. This is for a site that often sells out goofy tech widgets in hours. When the TouchPad was gearing up for release, there seemed to be a fair amount of interest among geeks. Is it just that it hasn't resonated the same way with the general public, or have people just been disappointed once they've put their hands on one?
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RE: Comment by kovacm
by galvanash on Wed 17th Aug 2011 19:00 UTC in reply to "Comment by kovacm"
galvanash
Member since:
2006-01-25

Its more than that though. The key thing I think is that they simply don't have a whole lot of products - they only really sell 3 computers:

1. Air, Macbook, Mini, iMac - These are fundamentally all the same computer... In the same generation they share virtually all of the same major components, they only differ in PCB design (if that) and packaging. Same processors, same graphics, same chipsets, same everything. Its just a few different options here and there.

2. Mac Pro - Low Volume, High end, high margin - they can afford to splurge on components here and they do. They are also very expensive so this product is excluded from my argument.

3. iPhone, iPad, iPod, AppleTV - Again, same physical product, just different packaging.

They have the advantage of being able to amortizes their R&D and manufacturing for each of these 3 "systems" across the entire lineup. They control manufacturing from top to bottom, so they can buy components at low prices because they get the volume discounts for the entire lineup combined.

So in reality, Apple makes 3 things. They make a consumer computer, a professional computer, and a mobile computer. But the R&D and manufacturing for these is spread across a small number of very distinct skus that target very different markets, so they get the benefit of wide market penetration with minimal investment. No other computer maker has been so successful at doing this.

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