Re:HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
by Lewisham on Monday August 22, 2011 @12:13PM
(#2912927)
I don't think the firesale was even zero margin; I think it was just cheaper than dealing with the shipping/storage/recycling costs. I expect the hardware cost more to make than they were sold at.
Re:HP's $99 TouchPad Fire Sale Can Teach Everybody A Lesson
by reemrevnivek on Monday August 22, 2011 @12:24PM
(#2912968)
You're right: According to iSuppli, the BOM for the hardware was about $300.
http://www.isuppli.com/Teardowns/News/Pages/HP-TouchPad-Carr...
EDIT: I fully realize the TouchPad costs more to make than $99 and the margin during the fire sale was less than zero. If anything it probably barely covers the cost of supporting the units and software through the support period given some fixed costs of support and the small number of units. That only drives home the point further that HP was right to just shut it down and get out.