Taipei, Thursday, September 18, 2014 14:48 (GMT+8)
mostly cloudy
Taipei
34°C
Digitimes Insight: HP shows that tablet success can be had, at a price
DIGITIMES Research [Friday 2 September 2011]

Hewlett Packard's (HP) plan to launch "one last run" of TouchPad tablets comes only about a week after the vendor stated it would no longer be producing webOS devices. While the quick reversal can be explained by HP's need to clear out inventory in its manufacturing supply chain, the strong sales of the TouchPad once HP lowered the price to US$99 shows that HP is probably not too worried it will get stuck with product once it receives shipments from its suppliers.

According to Digitimes, HP originally released orders for 900,000-1.1 million 9.7-inch TouchPads to Inventec and has taken delivery of 800,000-900,000 units. The shipped TouchPads were nearly all sold out after the vendor slashed the tablet's price to US$99. In an effort to mend its relationship with component suppliers and channel operators, HP decided to help them clear out inventories, including touch panels, batteries and chassis, equivalent to 100,000-200,000 units of 9.7-inch TouchPads.

HP sold about 400,000 TouchPads in the two days after it slashed the price from US$499 to US$99, up from only 25,000 units in total at Bestbuy before August 17. Digitimes Research analyst James Wang pointed out that the lesson for the tablet market is that vendors can compete with Apple as long as product quality is good enough and the price is incredibly cheap.

While the future of webOS remains up in the air, Wang believes that among potential buyers of WebOS, a list which includes vendors as varied as Apple, Facebook, Google, HTC, Microsoft, RIM, Samsung, and Sony Ericsson, only Facebook has any incentive to use webOS to build a platform that has potential to expand its market share. The idea would be to basically give away webOS at no charge, like Google does with Android.

Other potential buyers would have more interest in the webOS patent portfolio rather than building a platform.

Wang is the author of the Digitimes Research Special Report, "Expectations for the 2H 2011 tablet market."

Topics: Page 2

Companies: Inventec

Realtime news
  • PCB makers to see HDI board lines at full capacity till year-end 2014

    Bits + chips | 13min ago

  • Digitimes Research: Intel looking to promote x86 architecture to China chip designers

    Bits + chips | 16min ago

  • CSOT holds opening ceremony for new 6G LTPS facilities

    Displays | 31min ago

  • Asustek aiming to achieve 15% on-year PC shipment growth

    IT + CE | 37min ago

  • Digitimes Research: Mobile DRAM bit growth rate to top 37.5% in 2H14

    Bits + chips | 49min ago

  • MediaTek and Opera Software partner to extend consumer data plans

    Bits + chips | 2h 42min ago

  • Pegatron component subsidiary Asuspower to acquire equipment

    IT + CE - Stockwatch | 3h 12min ago

  • Taiwan market: Asustek unveils G20 gaming desktop

    Before Going to Press | Sep 17, 22:02

  • WCG Ultra HD TV panel shipments to grow in 2015

    Before Going to Press | Sep 17, 21:49

  • STMicroelectronics sees increasing MEMS applications in wearable, IoT markets

    Before Going to Press | Sep 17, 21:49

  • TSMC to spend NT$718.74 billion purchasing equipment

    Before Going to Press | Sep 17, 21:44

  • Csun to see revenues up in 4Q14

    Before Going to Press | Sep 17, 21:37

  • Ichia to see revenues drop 10-15% sequentially in 3Q14

    Before Going to Press | Sep 17, 21:36

  • Lite-On Semi rolls out new full bridge rectifier diodes

    Before Going to Press | Sep 17, 21:33

Pause
 | 
View more

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

Taiwan LCD monitors – 2Q 2014

TAIWAN FPD | Aug 25, 14:48

Taiwan's monitor shipments grew 10% in the second quarter compared to a low first-quarter base. With panel makers reducing their supply of monitor applications and monitor vendors reluctant to increase their shipments, Taiwan's makers will only see a single-digit...

China smartphone market and industry – 2Q 2014

CHINA SMARTPHONE | Aug 12, 17:41

A delay in the launch schedule for low-cost 4G smartphones resulted in a mere 4.8% increase in second quarter shipments in the China market. However, with telecom operators planning on increasing their subsidies in the second half of the year, demand will be...

Taiwan small- to mid-size LCD panels – 2Q 2014

TAIWAN FPD | Aug 6, 21:18

Taiwan makers' small- to medium-size panel shipments reached 351.4 million units in the second quarter of 2014, up 16.8% sequentially but down 2.8% on year.

Analysis of China revised domestic semiconductor industry goals
DIGITIMES Marketing Services
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.