5 possible reasons why HP is making one last batch of Touchpads
Posted in Business, Technicalon Aug 30, 2011
Today HP announced that they would make one more batch of Touchpads:
We have decided to produce one last run of TouchPads to meet unfulfilled demand.
While my inner-optimist would like to believe that HP is making a few more Touchpads because they feel sorry for everyone who really wanted one and didn’t get one, I think it is more likely that HP had other reasons for making another batch of Touchpads:
- They have to make more in order to keep a backup supply to use for in-warranty replacements. HP asserts that all Touchpads come with a 1 year warranty.
- By making a few more, they can continue to reap an increased level of press coverage. HP has never seen so much press coverage until they announced the discontinuance of the Touchpad.
- They have contracts with customers, channels, and partners to provide a certain number of Touchpads, and they are making more to fulfill their legal requirements to those contracts.
- They fear a public relations backlash, possibly even legal consequences, if they don’t provide any more after using phrases like, “Coming Soon,” “Temporarily out of stock,” and “When it becomes available again.”
- In an effort to license or sell webOS to other device manufacturers, HP wanted a supply of Touchpads to provide to developers or engineers.
Perhaps the generalization of these speculations is this: The fire sale happened so quickly that HP ran flat out of inventory before they realized that they needed a few more.