Channel Marker

Aug 24 2011   1:40PM GMT

HP to make good on TouchPad refunds

badarrow Barbara Darrow Profile: badarrow

Hewlett-Packard will, in fact, offer full refunds to  VARs for any TouchPad tablets they have in inventory. it will also “price protect” customers who bought the TouchPad at full price. But it’s not advertising that fact.

This is a “reactive rebate”  so resellers should not actively solicit or advertise the price protection offer, according to an HP email.

HP  told VARs that it will offer full refunds to “resellers and our end customers who purchased the TouchPads at the higher price (prior to 8/20) and who have requested a rebate or a return.”  

HP launched the long-hyped product July 1 at $499 but quickly discounted it when buyers stayed away. Then it shocked the world last week by announcing that it was nuking tablet business.

HP distributors that took on product will be asked  to help process refund claims.

This is good news to loyal HP VARs who followed the company’s request to pre-order and tout the slick-but-now-dead devices and paid over $300 for them. It’s hard to make a profit when your vendor suddenly kills a product that lists for $499 and launches a fire sale offering the same untis for $99. Impossible, in fact.

HP’s cost for the tablet was reportedly $380 on which VARs could make 4% margins or $20 per unit.

Several VARs lauded the TouchPad’s multitasking capability and iPad-like interface but said HP priced them too high initially. They should have come out at $399 initially instead of trying to out-Apple Apple, one said.

“You can’t come out at the same price as iPad unless you have something dramatically better. The problem with TouchPad was a lack of apps,” said one long-time HP partner.

Let us know what you think about this post; email Barbara Darrow, Senior News Director at bdarrow@techtarget.com,

Check out more IT channel news on SearchITChannel.com and follow us on Twitter.

 

 Comment on this Post

 
There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to: