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Adrian Kingsley-Hughes

Five lessons tablet OEMs can learn from HP TouchPad fiasco

By | August 19, 2011, 10:55am PDT

Summary: Lesson One: Don’t launch a product, launch an ecosystem.

So, HP’s TouchPad tablet went from launch to having the plug pulled on it in 49 days. What lessons can other tablet OEMs learn from this fiasco.

Don’t launch a product, launch an ecosystem

One of the biggest mistakes that HP made with the TouchPad was to  release a product and then hope that an ecosystem would magically form around it. Things might have worked that way with the iPhone, but that was a long time ago and the platform didn’t have much in the way of competition.

Why should consumers gamble on a product like the TouchPad (and HP’s lack of commitment to the platform shows just how much of a gamble it was) when there is an established player in the market.

New products entering the market now need to have an ecosystem that users can tap into. If a company wants to launch a product without a decent ecosystem to support it, then that company better have invested in time travel technology, because the only way it’s going to work is to travel back in time to a world before the iPad.

Have a little faith in your products

How much faith do you think HP had in the TouchPad to trash the project in 49 days?

When consumers by a PC or a tablet or a smartphone, they don’t just want a device, they want to see a long-term commitment from the vendor in the form of updates and apps. This means that users expect a vendor to properly support a product for a decent length of time (a few years).

If HP can bin the TouchPad so rapidly, how committed is it to its other products and services? What message does this send customers and potential customers?

Don’t expect a weekend blockbuster

I’m not really sure how many TouchPads HP was expecting to sell in the first year, but I can’t imagine how bad the initial sales had to be for the company to dump the product after less then two months.

Did HP expect the TouchPad to be an overnight success? Seriously? Has hardware gone the way of movies where success or failure is judged on the basis of the first weekend? I hope not.

Don’t take people’s money if you can’t deliver

Companies don’t operate in a vacuum, and dumping products shortly after releasing them isn’t a good way to build long-term consumer confidence.

Think about it - if you’d just bought a TouchPad, would you be in the mood to buy another HP product in a hurry?

Unknown operating systems are a gamble

People have heard of Windows and Mac, and Android and iOS. webOS came from nowhere and HP expected people to embrace it without giving customers a solid ‘why’. The promise of apps and updates wasn’t enough (and given that the platform died within a couple of months, can you blame people for being wary).

If you’re going to bring out a tablet with an unknown OS, take the time to actually sell it to customers.

Where do you think HP went wrong with the TouchPad?

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

Disclosure

Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

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The best technology does not always win out ...
mwagner@... 12th Oct
@akshayvora ... because, in the end, user perception is tough to overcome. Consumers understand that Apple sells premium products at premium prices. HP tried to sell its tablet at Apple price-points. HP can no longer afford to sell commodity products. That's why they are trying to dump their PC business. Instead of "killing off" the TouchPad, they should have kept it alive and given their PC division a chance to turn it into a commodity product at commodity prices. Ironically, to Amazon go the spoils.
Or possibly more simply, if you're not Apple: don't.
@Jeremy-UK
You are too optimistic.
Some give 40+% of marketshare for Android powered tablets in 2012.

Yes Apple is supreamly succesfull (from the begining of tablet saga!), but others can catch up it they are willing to go throught "harsh" begining.
@przemoli But will the OEMs actually make any money? Android hasn't been a "pot of gold" thus far, Apple's ability to price the iPad low has REALLY hurt OEMs hoping to make money out of tablets, and sales of those tablets have been "disappointing".

Is this a good game for an OEM? Nope.
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@przemoli

Even the most conservative estimates for iPad sales put it around the mid-30M. Apple has stated (and reports from their suppliers confirm) that they are selling them as fast as they can make them. Projecting their current sales rate through to 2012, Apple will have sold roughly 50M by the end of 2011, and probably somewhere in the 70M range by the middle of next year. That means, Android makers would have to sell 28M tablets next year to capture 40% of the tablet market by mid-2012, even more the later in the year you go. That just doesn't seem likely at all.

Given the supply constraints Apple faces, I'm not so sure catching up is going to be possible regardless of how harsh the first few steps are.
@przemoli LOL! Only the delusional. Android tablets have been a dismal failure. The only Android tablet with any sort of moderate success is the Galaxy Tab. It's not even going to have half of that. Windows 8 tablets will stomp Android in the tablet market.
@przemoli Perhaps you misread that forty percent. Android phones have a forty percent return rate. Not stellar for such an iPhone killer is it.
@przemoli True that. Android is @ 49% worldwide smartphone marketshare. Give them a year and it will be the same in tablets. No matter how many iPads get sold, there is no way they can compete with 20 vendors releasing comparable tablets, especially @ cheaper prices.
@jhammackHTH

Perhaps you have never heard of the Asus Transformer? By all counts it s the best selling Android tablet. Not even Samsung can match it.
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bcs@informationworkshop.org
Mark Hernandez 19th Aug
Here's an article that looks at the myriad of intangibles that directly affect success, including as you say, "starting with the why." http://techvessel.tv/?p=1102
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It does not have a snow ball chance build a fine platform to compete against the real deal be it in a desktop, tablet or mobile world.
Sounds like what happened to IBM with the Windows CE WorkPad.
I agree with the first 4 lessons/points, but the 5th one isn't correct. WebOS is, arguably, and I'm sure most critics would agree, one of the best mobile OS out there. I think it has much more appeal in terms of functionality, usability and overall look & feel than Android or iOS for that matter. It might have been unknown only because Palm miserably failed marketing it and HP was, I'm short of words here, maybe another catastrophic failure?
HP went wrong pretty much on every step, everyone knows that by now. But the biggest failure in my opinion was to try to model their first tablet, hardware-wise, after the 1st gen iPad. I don't know why HP, with their enormous resource pool couldn't come up with a better piece of hardware, both internally and externally. Why does everyone have to follow Apple (no doubt their designs are awesome)? I don't know why they hushed their announcement of the tablet without making WebOS hardware-optimized. Given that WebOS is so different and brilliant (it does lack the polish, though, where iOS shines), why couldn't HP capitalize there and think out-of-the-box in terms of hardware. They were already a year behind the 1st gen iPad and everyone knows that Apple comes with a refresh every year - they should have foreseen that and come up with a drastically better design and a hardware-optimized OS, followed by an immediate launch which remains a dream for Mr. Leo.
@akshayvora While WebOS might be a wonderful tablet, mobile device OS it reminds me of how OEMs try to 'out hardware' the iPad with little to no success. Adding a USB port doesn't make a tablet device an iPad killer. Bring tens of thousands of apps in a tightly controlled (read no malware to speak of) ecosystem that has a proven track record and it begins to add up. No one, not Google, or any hardware OEM has come close to that ecosystem, combined with Apple's customer support and reputation for quality product and again, no one comes close. WebOS was just another USB port in the battle.
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@akshayvora ... because, in the end, user perception is tough to overcome. Consumers understand that Apple sells premium products at premium prices. HP tried to sell its tablet at Apple price-points. HP can no longer afford to sell commodity products. That's why they are trying to dump their PC business. Instead of "killing off" the TouchPad, they should have kept it alive and given their PC division a chance to turn it into a commodity product at commodity prices. Ironically, to Amazon go the spoils.
webOs has actually been along for a few years, the original Palmpre implemented it. However it was junky and they've only been promising Adobe Flash "soon" for the past 2 years. All in all, I feel sorry for any person who purchased one of these 200$ paper-weights.
@Deirg
The TouchPad was sold exclusively through Harvey Norman in Australia. In saying that, it only came on the market 5 days ago. From what I have been reading, everyone who bought a TouchPad will be offered a refund. Mind you, that is only 1,200 people. However, an offer of a refund is certainly the most ethical option.
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I wonder because I would say the ecosystem began with iTunes and the iPod not the iPhone. Granted it was small but I will agree that the iPhone put the ecosystem inti high gear. The point being iTunes is now what close to a decade old and Apple was allowed through either superb planning or dumb luck to grow it at a medium pace:). Something anyone else who wants to create the same thing faces a daunting task for they have to create it right now! However I would point this out that regardless this happy accident or well planned strategy is not something one can put blame on Apple for. Apple took the initiative and the risk and it paid off. Same thing for Apple having the money and for sight to purchase components in bulk. After all it's iPad, iPod Touch, and iPhone use the same components witch is yet another either happy accident or smart/wise planning:)

Pagan jim
@James Quinn I suspect Apple does little that isn't planned. On the other hand, my wife contends that the whole app store concept was not in Jobs' original vision for the iPhone. If you review his keynote in 07 where he introduced the iPhone he pushed html5 as the app generator. It took another year for him to acquiesce and allow developers to develop in a native on device environment.
That said, if he had indeed been against an app store concept then it speaks to his, and Apple's ability to quickly and effectively respond to the market and its developers.
@dheady@...

The key point was that his friend was investing in the App Store concept and the "grass roots" iPhone app developers. But I'm not sure that happened during the initial iPhone keynote speech introduction or when the second gen model was introduced.
@James Quinn

And, as iTunes grew, the concept of online purchasing of digital content was established in the Apple ecosystem.
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RE: Five lessons tablet OEMs can learn from HP TouchPad fiasco
LoverockDavidson_-24231404894599612871915491754222 19th Aug
OEMs need to learn that most people don't need or want a tablet. Its really not offering anything new that their current computers can't do.
@LoverockDavidson_ A great many people don't have a need or want for the full blown computer. You might argue that the full blown computer can do everything a tablet can but so? It's not as mobile as a tablet and in the case of laptops not as light and usually battery life is not as good... That is true at least in the iPads case not sure of others. The "MORE" you are trying to sell has mo actual value to a lot of people.

Pagan jim
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RE: Five lessons tablet OEMs can learn from HP TouchPad fiasco
LoverockDavidson_-24231404894599612871915491754222 19th Aug
@James Quinn
A great many people don't have a need or want for the full blown computer.
Sure they do. They need the extra horse power for playing games or using business apps or connecting up to the VPN.

A laptop may not get as good battery power but its enough to get the person by until they reach their destination and charge it up.
@LoverockDavidson_ And even more in development? As for VPN I could have sworn I heard some people claim they do something similar with their iPads already? As for business apps does not VPN or something like that not solve that problem?

Funny thing about that Laptop thing is that wasn't this a common complaint about the iPhone when it first came out and had not a removable battery? Everyone was all about the battery running out and stuff but that does not matter on a laptop because hey it will do as compared to a tablet that will last you 10 to in some cases 11 hours or more right?

Pagan jim
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RE: Five lessons tablet OEMs can learn from HP TouchPad fiasco
LoverockDavidson_-24231404894599612871915491754222 19th Aug
@James Quinn
The iPad does have games, all the ones you find in any iOS device, but those games are just fun little 5 minute time wasters while you pass the time before doing other stuff. We mean real games, WoW, AD&D, POTC, StarCraft. As for VPN, I haven't seen a cisco or juniper VPN for iOS.

As for the battery, are you going to go 10 or more hours without charging it up?
@LoverockDavidson

As HP's Apotheker stated, the iPad (tablet) effect is real on PC sales and that tablet units will continue to grow their consumer user base at the expense of PC desktop unit sales. That is the key reason he cites for HP's decision to get out of the consumer PC business. No offense but his opinion on future tablet capability might mean just a bit more than yours. (Again, he made a billion dollar plus executive decision so please don't feel offended by my previous comment.)

As for that ten hour tablet use before recharging. Yeah, its real for iPads and I have heard credible testimony from Android tablet users that they also get 10 hours or so of use. (James Kendricks)
Absolutely true. Tablets may be fine as some kind of toy, but for serious work, the laptop/desktop is here to stay for a long time.
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Wow, you make it sound so easy
toddybottom 19th Aug
Don't launch a product, launch an ecosystem. That sure sounds easy, risk free, and inexpensive.

You hit the nail on the head, you probably just didn't realize it. I agree that you have to launch an ecosystem that is on par with iTunes to have any hope of success. And more than just iTunes, the ecosystem includes all iPods, iPhones, and iPads. It includes a marketplace to buy music from every major supplier and an app store that is full of apps. And all of this has to be available on launch day before you sell a single device.

It is impossible. No shareholder would ever authorize a company to spend what that would take just to compete with a company that already owns 90%+ of all the profits in all of the markets it competes in (iPhones aren't quite there but will be soon).

There will never be a successful competitor to iPad. Ever. There will only be devices that augment the iPad and eventually, in 20-30 years, there will be a company that flanks Apple in the same way Apple flanked everyone else (thanks to doctorspoc for the flanking word).

But there will never be a tablet that has any measure of success. Apple is just too strong, the iTunes ecosystem is too strong, the patent pool is too strong, the legal team is too strong, the special supplier deals are too good for any competitor to come in and compete against Apple in the iPad market.
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@toddybottom .. decade from the birth of iTunes to today. Apple had time no one gave iTunes much consideration when it first appeared and other MP3 players thought that making an MP3 player cheaper than Apple's with more features was the ticket very PC like attitude. So no one made an iTunes and left that up to third parties to fill in ghe game giving Apple a huge lead. Then came the iTouch and iPhone and while Apple was slow to open it to App developers when they did a flood came in and BINGO official "ecosystem". Still in Apple's case other OEM's gave Apple all the time in the world to tweak iTunes and create an ecosystem while NOT loosing money but rather making money something I don't think anyone else has time to do now.

Pagan jim
One more I would add.... Do something different
Instead of (i)-me too product, HP should had done something different. I think Apple Ipad can be beat if one made it a lot cheaper, open. Two big gripes I have about Apple is price, I can get a cheaper laptop, and Apple micromanaging the applications store especially after the Exodus International flap. I do not want Apple nor political activist of any stripe dictate me what app I can or cannot purchase. I stick to the PC (Windows or Linux - my choice) and to the devil with mobile devices.
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What "exodus international" flap?
James Quinn 19th Aug
@Richard B As for open not really a fan of it. In theory it sounds all cool and freedomy kind of thing but in practice it can often be ugly. I've been in computer support/repair for over two decades more like three actually and I've done it all but it's my work. Something I do not want to do on my own devices computers or mobile. So I actually prefer Apple's way to alternatives. Still that is a very subjective opinion and I know others can and will disagree. Just sharing with you my why i do business with Apple tale:)

Pagan jim
@James Quinn
The thought about crappy apps and malware crossed my mind but I hate the idea somebody blocking me from an app I might want to have because the have a political problem with it. If I want to download every Christian conserve app out there (regardless I disagree with most) it my choice and the LGBT activist better just deal with. Last time I check America is a free country. I would feel the same if roles were reversed.
@James Quinn

I want PORN apps on my tablet. Will I get that with the iPad?

Just kidding, but I am no tech imbecile, and Android won me over by having an option to install apps from unknown sources.
With HP's "revolving door" of senior management people over the past 4-5 years, it comes as no surprise. Each new person feels he/she has to make his/her mark on the marketplace. In the meantime, existing customers who helped HP get to where they were are being abandoned.
I started this group on obaz right before the announcement about HP discontinuing the TouchPad however it occurred to me that now is just the time to get a fabulous deal.

http://www.obaz.com/groups/503

If the fantastic hagglers over at Obaz.com can't get us all one of these babies brand new for less than $100 I'd be very surprised. They may be discontinued but they still make a great tool for checking email doing some browsing and using as an e-reader. Once the time expires obaz will haggle on the groups behalf and show us what kind of deal they can get us. Your under no obligation to take the deal however I ask that you hit "I want this" so we can as a group at least see what kind of deal we can get based on numbers. Apparently the average obaz deal falls between 20-80% off. Can't hurt right?
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With these two moves--dumping the touchpad and selling off the desktop PC business--they've cut themselves from top-selling PC to last place, putting Apple into second or even first place in the computer wars.
I would have bought it for the operating system. But, I'm familiar with it because of Palm PDA's. It is a good operating system.
"Don?t launch a product, launch an ecosystem;" demonstrates a fundamental misunderstanding of how new products are created, marketed and sold.

Insight into how products or groups of products increase market share - may be gained by exploring the history Apple and it's relation to "itunes/SoundJam MP." Without SoundJam, Apple might have gone out of business.

Caslo Cranston
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A few more brutal
keebaud@... 22nd Aug
If it's close to the cost of an iPad then folks will buy an iPad.

For the sake of a few quid don't skimp on the hardware.
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Not to be too blunt
keebaud@... 22nd Aug
1) If it costs as much as an iPad then people are going to buy an iPad, unless you product is spectacular.
2) If you're trying to build an iPad beater then don't skimp on the hardware.

The word tablet has already become synonymous with iPad, and the infrastructure that's already in place is a nearly impossible obstacle for a new product.
Hard to destroy consumer confidence if you don't plan to deal with consumers anymore. I'm sure part of the decision to have a blow out sale is the fact that it appears HP doesn't plan on being in the consumer market for very long. Wish I would have shorted the stock.
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If something doesn't guarantee boatloads of money right now then it is in danger of being axed. Most execs want their bonuses THIS quarter and are unwilling to wait the time it takes to mature an ecosystem. HP was just hoping to capitalize on a craze using their name as hopes that it would sell big but failed miserably.

The people who make purchasing decisions for corporations also follow boards like this and are likely to reevaluate whether they want to commit to HPs business hardware when HP might not return the favor. Because of this, HP may have seriously damaged more than just their Consumer side business.
HP should have let Microsoft and Google worry about the OS. It would have saved them a lot of time and money. Besides with Apple, Google, and Microsoft each developing their own ecosystems. There's not really anymore room for a another player.
1. A quality product that costs less than the Ipad will outsell the Ipad. Always.

2. A quality product that is easier to use than the Ipad will sell if aimed at the right market. That is, geeks moan, groan and whine about how it falls short of the Ipad. The rest of us couldn't give a flying fart about that. Bottom line: is it good enough for my purposes? Answer: an unqualified and enthusiastic "yes".

3. Older folks intimidated by pc's would have taken to this quickly and readily....if they'd known about it. Big screen, no keyboard or mouse just finger movement, email and document capabilities..all in an easy to understand OS.

4. Who cares what Russel Brand thinks? Who IS Russel Brand without his wife?
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If you want to compete with Apple, you have to beat them on price!

The HP fire-sale demonstrated exactly how much pent up demand there is for tablets - even tablets lacking all the things the HP TouchPad lacked (as outlined above).

If people have to spend $500 on a tablet, they will buy an iPad - or they will do without!

If they can get a reasonable facsimile of an iPad for $249, they will be a lot more likely to buy it!

It seems that Amazon learned as much as anybody from the HP TouchPad fire sale. Instead of introducing the Kindle Fire at $249 (as all the pundits expected), they recognized that they could draw in a lot of customers unwilling to pay $499 for a tablet.

Those customers will lay down $199 for a less-capable device - from a reputable company. Amazon has built a reputation for customer service and the Kindle has already proven itself so the $199 Kindle Fire appears to be the right device as the right price.

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