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Episode 122 — Wednesday, August 31, 2011 Story #1 HP announces production of more TouchPads How sustainable is a lower-price point business model? According to the HP Company blog, the TouchPad is making a limited comeback. “Despite announcing an end to manufacturing webOS hardware, we have decided to produce one last run of TouchPads to meet unfulfilled demand.” HP’s Touch Pad originally entered the tablet market priced at 9. Sales were dismal, and after only a few months HP discontinued the product line and cut prices to . Immediately following the price reduction, sales went through the roof, and many stores sold out within hours. At first glance, this may seem like a sound business decision. By lowering the price point of the TouchPad, HP is no longer in direct competition with the market leading iPad, which is why they are experiencing a surge in sales. HP engaged an entirely different customer base with the tablet than they did with the 9 tablet. However, this success cannot be long lived, as the customer base searching for a tablet will soon be exhausted. In order to maintain competition and sales, tablet manufacturers need to find the sweet spot between the price of the iPad and the extremely discounted HP TouchPad. Story #2 Financial Times FT removes iPhone and iPad apps, develops web app Continuing an emerging trend The London-based Financial Times removed its iPad and iPhone apps from Apple’s App Store and created a mobile browsing page. Many …
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