HP revives TouchPad following "pricepoint avalanche"

online.wsj.com

6 pointsfigital2 comments

The introductory model of the TouchPad costs $306 to manufacture, according to an estimate from research firm IHS iSuppli, suggesting a loss of roughly two-thirds if it is sold for $99.

Sterne Agee analyst Shaw Wu said the temporary return of the TouchPad was likely a poorly thought-through decision

They likely already had all of the parts (chips, board, case, screen) just sitting at the factory. Since the purchase of those parts would be a loss already (not likely to be used in other products), my not spend the extra few bucks to get them on the market?

This headline is misleading. They are not reviving the TouchPad. They are just using up the leftover parts and manufacturing capability they already had, and which would be considered sunk costs. Reviving would imply they had a plan to make more than just a few, and they wouldn't be warning people that there won't be enough to go around.

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