Best Buy nukes tablet partners, resumes HP TouchPad sales
So much for my heaping praise on Best Buy. The retailer has decided to unload its unsold stock of TouchPads after all. It's an atomic blast that will have grave consequences for Best Buy and, more importantly, its other tablet partners. Apple might just laugh all the way to the bank.
The problem is this: Best Buy is sitting on an inventory of as many as 245,000 TouchPads -- or was yesterday. Today, who knows how many there will be for how long. By midday yesterday, cheap TouchPads were sold out pretty much everywhere, except HP online. Today, Best Buy owns TouchPad sales and already has sold out its online stock. Now it's up to retail stores to clear inventory. Last week, my local Best Buy sold the 16GB TouchPad for $499.99. Today it's $99 -- $149 for the 32GB model -- for an attractive 9.7-inch tablet, running the well-reviewed WebOS.
What does the glut of cheap HP TouchPads mean for Apple and Android tablet sales?
If you're trying to get a $99 TouchPad but can't find it anywhere, blame Best Buy. Based on calls placed to a half-dozen of the stores today, Best Buy has refused to sell its huge stock of HP tablets, choosing to return them to HP instead. It's probably cheaper for HP to dump the TouchPads -- as in a landfill -- then to sell them. You can thank Best Buy, which is sitting on an estimated 245,000 units, for that and partly for the mess at HP's online store today.
But there's sense -- loads of it -- for Best Buy shipping back unsold TouchPads rather than putting the soon-to-be obsolete devices into the hands of greedy geeks. HP, which is spending more than $100 million liquidating tablet stock, will compensate Best Buy for inventory. Better to take that cash rather than collapse sales of other tablets and quite possibly create unrealistic expectations among regular shoppers about what tablets should sell for.