[BITList] HP-WTF, likely a poorly thought-through decision

[x50type at cox.net]

      put this in the WTF category – does anyone at HP know what they are doing?
      CT

      Hewlett-Packard To Produce Another Batch Of TouchPads >HPQ 
        a..    By Ian Sherr 
           Of DOW JONES NEWSWIRES 

      SAN FRANCISCO (Dow Jones)--The TouchPad is dead. Long live the TouchPad. 

      Hewlett-Packard Co. (HPQ) said in a corporate blog post dated Monday that it will temporarily resume manufacturing of its ill-fated tablet computer just 11 days after killing the machine as part of a sweeping corporate overhaul. 

      The resurrection of the TouchPad follows a surge in demand for the tablet after H-P dropped the price of the introductory model by roughly three-quarters to $99 to clear inventory. Palo Alto, Calif.-based H-P didn't say what it would charge for the new batch of TouchPads, but cautioned potential buyers there might not be enough go around. 

      "We don't know exactly when these units will be available or how many we'll get," H-P spokesman Mark Budgell wrote on a company blog. "We can't promise we'll have enough for everyone." 

      The H-P's temporary reversal comes in the midst of a strategic overhaul that will focus the company on software and services. As part of the strategic change, H-P may sell off its computer group, the world's biggest maker of PC's. The company hasn't said what it will do with the group that makes the TouchPad and maintains the well-regarded webOS mobile operating system, but has said sales of the tablet were too weak to justify continued investment in the device. 

      An H-P spokeswoman said the company was investigating ways to continue using webOS. 

      On Aug. 20, H-P inadvertently created a TouchPad boom when it dropped the price of the device in order to clear inventory. The move generated an Internet phenomenon and long lines at retailers, including Best Buy Co. (BBY), as consumers jostled to pick up a TouchPad at the dramatically reduced price. 

      The decision to manufacture a second run, however, left analysts scratching their heads. The introductory model of the TouchPad costs $296 to manufacture, according to an estimate from IHS iSuppli, suggesting a loss of roughly two-thirds if the device is sold for $99. 

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

      "They did a lot of these moves in haste," Wu said. He said the move will likely create confusion among customers and application developers, which H-P are still trying to woo to its platform. 








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