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Topic: Hardware

HP TouchPad already catching Android tablets in ad revenue

Summary: The HP TouchPad in ten days is generating almost as much ad revenue as all of the Android tablets combined.

James Kendrick

By for Mobile News |

Update: The HP TouchPad is the little engine that could, except it got shut down. The online frenzy about the dead tablet has been amazing to watch, as the special $99 price HP put on the TouchPad made it the tablet to own. While there is no question that HP has sold thousands of TouchPads at the ridiculous close-out pricing, it seems that one unexpected result of all these HP tablets hitting consumer's hands is that it is making money for companies (not HP).

Mobile ad agency Jumptap just sent me a chart that is mind-blowing as it shows that in just ten days the HP TouchPad has almost caught all Android tablets in ad revenue generated on their network. While the iPad is still the king of the ad revenue generating tablet crowd, the beleaguered HP TouchPad is almost within a single percentage point in generating as much ad revenue as all of those Android tablets out there.

Updated: Jumptap had specifically mentioned sales to me prior to publication but have pointed out this chart is traffic, or ad impressions.

Does this mean HP TouchPad owners are more likely to click on ads than their Android brethren? Maybe. Or perhaps the new TouchPad owners are feeling a bit more adventurous having snagged a good tablet for a hundred bucks. Whatever is behind these numbers it does make one believe that producing an ad-subsidized tablet (think Amazon) might be a viable business model.

Topics: Hardware, Android, Hewlett-Packard, Laptops, Mobility, Tablets

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29 comments
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  • RE: HP TouchPad already catching Android tablets in ad revenue

    HP - failure on this business decision. They should have kept trying until it worked. The potential is obviously there.
    dennis@...
    Reply Vote

    • RE: HP TouchPad already catching Android tablets in ad revenue

      @dennis@... You don't understand. It's already worked. Android is still trying to get it to work. In just 10 days, webOS is in millions of hands and known by millions more.

      Can you imagine if HP decided to come out and say "Due to the high demand of Touchpads, Hewlett Packard was unable to supply the enormous demand for the product. Therefore, HP has decided to continue manufacturing and supporting the HP Touchpad for the foreseeable future." The 16 gb for 249 (about the cost of manufacturing) the 32 gb for 299 (about 20 dollar profit)

      A satisfaction unlike any other will sweep the millions that bought a Touchpad. With the support from HP and soon app developers, word would get out that you don't have to have an iPad to be cool, especially with what Amazon has over the horizon
      Fat Albert 1
      Reply Vote

      • RE: HP TouchPad already catching Android tablets in ad revenue

        @Fat Albert 1 <br>Millions of hands? Where did you get that number? HP is taking a bath on this. You say $20 profit. You haven't even counted how much it costs to buy the company, develop the OS(people draw salaries), develop the HW, ad costs, shipping costs, etc.<br><br>HP is losing millions, estimated around $100m, I believe, giving this turkey away. How long you think they can withstand that?<br>And who would develop software for webOS? "Hey, developers, you can sell your wares to these people if you price it 75% off and lose your shirts in the process."<br><br>Touchpad is the very definition of failed product.
        dhmccoy
        Reply Vote

  • RE: HP TouchPad already catching Android tablets in ad revenue

    How is it the little engine that could when it didn't sell at all until the price hit $99?
    slickjim
    Reply Vote

    • RE: HP TouchPad already catching Android tablets in ad revenue

      @Peter Perry - That's not true. Staples had the Touchpad on special via a limited circulation email for $299. The information got leaked and Staples was swamped by demand for the Touchpad. The demand it generated was so huge, Staples ended up telling their stores to stop honoring the price. Office Depot and Office Max refused to match the $299 price as well. So yes, the Touchpad 16 gig was selling like a hot cake even at $299, but vendors refused to sell it at that price.
      Sahalu
      Reply Vote

      • RE: HP TouchPad already catching Android tablets in ad revenue

        @Sahalu right and that is why it was clearances just two weeks later!
        slickjim
        Reply Vote

    • RE: HP TouchPad already catching Android tablets in ad revenue

      @Peter Perry

      Your response to Sahalu proves you never even wanted to understand the situation, you just came here with your mind already made up to bash HP.

      What you really should do is actually read the comments in response to you instead of just looking at them and saying " you dont agree with me so i am going to just blow your comment off"

      the truth is, its not like anything not named the iPad was selling in the tablet market, the HP tablet was like 7th in sales out of the 16 or so tablets sold at major retailers.

      Thats not exactly bad, its just not as good as HP expected.

      and Like Sahalu said, it was price that hindered this device , not the device itself.

      that is what the "little engine" part means. it was a great device, it was just in a crowded market with an unreasonably high price.
      dsjj251
      Reply Vote

      • RE: HP TouchPad already catching Android tablets in ad revenue

        @dsjj251

        It is always my belief that part of the valuation of the price of a tablet is about the prospects of the ecosystem behind it.

        From the beginning, the only hope for Touchpad to penetrate the market should have been to sell at break-even or even at a loss, given that WebOS trailed far behind iOS and Android. $99 is not necessarily a bad idea. Too bad HP did it after they exit the market.
        CyberGuerilla
        Reply Vote

  • Fine, let's see what the number looks like in a month.

    I'm shocked, shocked to find that in the days immediately after a high-profile device is noisily discontinued and shockingly reduced in price it gets a lot of use. However, I'm willing to bet that in a few days people will start to realize exactly [i]why[/i] HP chose to kill a product it had invested a few billion dollars in. Once the novelty wears off, I'm fairly confident that so will those impressions.
    matthew_maurice
    Reply Vote

    • RE: HP TouchPad already catching Android tablets in ad revenue

      @matthew_maurice Spoken like someone with an axe to grind. Someone seems to have missed out on the fun. I bought one as an early adopter, and one in the early firesale, I'm on the waiting list for another one from HP SMB division so my family members have it. Everyone I demonstrate to says the same thing... Why did they kill it? And then: I want one.
      GAGendel
      Reply Vote

  • RE: HP TouchPad already catching Android tablets in ad revenue

    This is kind of in line with the last comment, but I think what this shows is just an influx of new tablet owners. Once a consumer gets any sort of new mobile device, activity is high in the beginning, as they are excited about their new gadget, and are spending a lot of time on it (similar to how iPads may see an increase in the days following Christmas). It will be interesting to see what activity is like in a few months after the initial rush dies down.
    max_nelson
    Reply Vote

  • RE: HP TouchPad already catching Android tablets in ad revenue

    so do I keep my hp touch pad or take it back? I have till 9:00 tonight to take it back for a full refund. HHHHEEELLLPPPP me please.
    maggiebrown2004
    Reply Vote

    • Split the difference

      @maggiebrown2004 Keep your TouchPad and get a partial refund for the amount that you paid above $99 or $149. More here:<br><br><a href="http://www.zdnet.com/blog/mobile-news/hp-touchpad-hp-and-best-buy-to-refund-price-differences-for-early-buyers/3857" target="_blank" rel="nofollow">http://www.zdnet.com/blog/mobile-news/hp-touchpad-hp-and-best-buy-to-refund-price-differences-for-early-buyers/3857</a><br><br>Be sure to call the store first just to verify that they will indeed provide you with a partial refund.
      Rabid Howler Monkey
      Reply Vote

  • RE: HP TouchPad already catching Android tablets in ad revenue

    HP's sin is misreading and interpreting the signal too soon. I would have given it 3 months and experiment with promos. Staples did at $299 and the demand was immediate and overwhelming, they told their stores to stop honoring the promo price. Office Depot, Office Max and others were also swamped by request to match the Staples price they wouldnt.
    Sahalu
    Reply Vote

  • RE: HP TouchPad already catching Android tablets in ad revenue

    HP executives who dismissed the touchpad too prematurely should be fired!
    awkward hug
    Reply Vote

    • RE: HP TouchPad already catching Android tablets in ad revenue

      @awkward hug That's a bit simplistic, but the stockholders should be up in arms because of the stock devaluation. As I read recently... Turning HP into a software house is like telling GM that they should stop making cars and start making airplanes.
      GAGendel
      Reply Vote

    • It's wasn't premature! The problem was always the price.

      Any "bad" ideas can turn into good ideas at the proper price.
      adornoe
      Reply Vote

    • RE: HP TouchPad already catching Android tablets in ad revenue

      @awkward hug
      Should be fired, But they'll likely get big bonus deals when exiting. LoL. Corporate environments stink!
      Jaytmoon
      Reply Vote

  • RE: HP TouchPad already catching Android tablets in ad revenue

    I disagree that the novelty will wear off and revenue will soon plummet. In fact, if you track any of the "deal" website, there are a LOT of people still waiting for a Touchpad to ship from HP, and there are a lot of touchpads on ebay and craigslist. More and more people will keep activating new accounts - I would bet that its another month or two before companies see peak ad revenue. After that - who knows. But, with all the positive reviews I'm reading on the TP (in now small part thanks to tips like Kendrick's for speeding up the TP) I think a lot of people will continue to use. Thus whole situation is very interesting, can't wait to see how it plays out ...
    kbagrows
    Reply Vote

  • RE: HP TouchPad already catching Android tablets in ad revenue

    My guess is that the rush to get the HP Touchpad is probably fueled by people like me.. I would love to have a device that I can use for basic browsing, email and music at that form factor but I will never spend $299 or more for it. 3 years ago I bought my HP Laptop using a combinations of coupons for $550+tax with the latest processor,ram and hard disk at the time. I refuse to spend an equivalent amount on a crippled device like the tablet. At $149 the tablet is a worthy buy (I am not saying it costs $149 to make one..I agree that the manufacturer is suffering a loss at that price point).
    waasoo
    Reply Vote
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