Canalys to HP - don't ditch TouchPad

Analyst claims that keeping the tablet going could double or triple PSG division's value

Analyst firm Canalys is urging HP to reconsider its decision over its TouchPad device, according to Reuters.

In a note to clients, Canalys predicted that if HP took a U-turn on its decision to can its TouchPad tablet, the move could double the value of the PC division the vendor is planning to spin off.

HP left the market reeling earlier this year when it revealed it would either spin-off or sell its PC business, simultaneously sounding the death knell for its TouchPad tablet and its WebOS software.

The vendor slashed prices of its tablet to between £89 and £120 to shift surplus stock, which sparked a feeding frenzy as consumers rushed to get their hands on the machine.

“The TouchPad was overpriced at launch and did not sell. This led HP to draw a premature conclusion that the product category had failed,” Canalys said in its note.

“The TouchPad has become the ‘must-have’ technology product of 2011. Perhaps no other technology vendor, apart from Apple, has ever created such hype for a technology product,” it added. “HP has established a lead in the race to be the number two behind Apple in the pad business, but the window of opportunity will begin to close if delays occur.”

Canalys predicted that HP could achieve and maintain 10 per cent global market share in tablets, doubling or even tripling the PC unit’s estimated value of between $8bn and $10bn.