AllThingsD is reporting that according to “trusted sources”, HP has only managed to sell 25,000 TouchPads out of a total stock of around 270,000 (or right around 10 percent of the total inventory) through BestBuy, and that the big box retailer is “sitting on a pile” of the unsold tablets:
Best Buy, sources tell us, is so unhappy that it has told HP it’s unwilling to pay for all the TouchPads it has taking up expensive space in its stores and warehouses and wants HP to take them back. HP, for its part, is pleading with Best Buy to be patient. We’re also told a senior HP executive, possibly executive VP Todd Bradley, is slated to travel to Minneapolis soon to discuss the matter with Best Buy executives.
What’s worse, BestBuy doesn’t appear to be alone. Online super-sale site Woot only manged to move some 600 HP’s tablet in comparison to the recent sale of a competing offering, and other big box retailers are voicing the same sets complaints:
There’s more. TouchPad sales aren’t only failing to catch on at Best Buy, but at other retailers including Wal-Mart, Microcenter and Fry’s, says analyst Rich Doherty, head of the Envisioneering Group. Doherty says that spot interviews at stores on both coasts show that HP’s “wildcat pricing moves” on the TouchPad have prompted consumers to wait and see what happens in the next few months.
GigaOm’s Kevin Tofel opined recently that HP’s recent price cuts of the TouchPad don’t necessarily spell disaster, but analysts are suggesting otherwise:
“After the initial surge of interest after the July release, all those price promotions have caused consumers interested in buying a TouchPad to pause because they think the price is going to fall further,” Doherty told me.
These apparent failures of the Touchpad in its early days on the market, coupled with the whisper-quiet launch of the Pre 3 in Europe have us scratching our collective heads over where HP is planning on taking webOS.
HP is set to report its earning results tomorrow, and hopefully any doubts of sales success can either be validated or put to rest.
AllThingsD