Hewlett-Packard's TouchPad back for 'one last run' after company announces U-turn
By Stephen Hull
Computer giant Hewlett Packard has announced a dramatic U-turn for plans to kill off its TouchPad by giving the failing device ‘one last run’ at success.
After slashing the price of the tablet from $499 to $99, U.S. sales dramatically, and possibly unsurprisingly, went into a frenzy as bargain-hunters chased a deal.
‘The speed at which it disappeared from inventory has been stunning. We have decided to produce one last run of TouchPads to meet unfulfilled demand,’ an HP spokesman said.
Only this month the computer giant said it was pulling out of the tablet and mobile phone market after poor sales of its products and stiff competition from rivals Apple and Google.
The change in strategy is being made despite claims HP may lose money on every TouchPad in its final production run as the 32GB version takes at least $318 to produce.
Critics have hit out at HP for wavering on the big decisions, such as its original stated intention to integrate its webOS software into every device it makes.
The company is struggling as smartphones and tablets eat away at its core PC business, the world's largest.
CEO Leo Apotheker is now under immense pressure from investors unhappy with HP's back-and-forth on strategy.
In a desperate bid to regain market share, last year HP snapped up Palm, a struggling wireless pioneer for $1.8 billion.
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