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UK Gets HP TouchPad Price Cut

HP TouchpadOn Monday, the price for an HP TouchPad was cut nearly 75% to £89 at PC World, Curry’s and Dixon’s. Mark Webb, a spokesman for Dixon’s tweeted about the sale, noting that limited stock would be available online, with a 16GB version for £89 and a 32GB version for £115. These are price drops from £349.99 and £429.99 respectively. Limited stock of the product is due to be available in stores at these prices starting today.

So why has the TouchPad been reduced in price? It follows HP announcing on August 18 that it will discontinue all WebOS devices after the tablet was launched in the US for less than seven weeks (since July 1). The product was only launched in the UK, Germany, France and Canada on July 15, so it’s had even less time to sell in those nations.

The TouchPad has certainly gained new interest due to the price reduction, and it could cause a shift in tablet sales. The US had a similar price cut last week after the discontinued announcement, which resulted in the tablet being completely sold out. The $99 and $149 price points have seen the device fly off the store shelves after two months of shops only selling a few in comparison. Retailers in the US have promised those who purchased the TouchPad since the launch a refund for the difference. This is being implemented across HP’s and Best Buy’s websites as well. Meanwhile, there are price cuts reported in Australia too.

Due to the dropped prices, HP is now taking a loss on the sale of the TouchPad, which costs $306 to make a 16GB version and $318 for a 32GB version. This means that they are losing $207 and $169 respectively on every one they sell now in the US. The company has deep pockets, but now they are basically paying customers to buy their tablet.

However, as ironic as it is, this could turn out to help the group. This is because HP had problems getting enough apps for its TouchPad and WebOS ecosystem due to developers not being interested in making them for a system that nobody is familiar with. Developers may be more willing to create apps for the device now that so many more people own it.

There’s no doubt that consumers will flock to the price reduction in the UK, Germany, France and Canada as well, as the TouchPad is a decent tablet. Many people are simply astounded that they will be able to save money on such a device, as the Samsung Galaxy and Apple iPad are priced upwards of $400 in the States. This is even great competition for Archos, which offers a 7-inch tablet with 250GB of hard-drive space and Flash capabilities for around $350.

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