Tech wrap: HP TouchPad’s second coming?

August 30, 2011

In an interview with Reuters, the head of HP’s PC business Todd Bradley gave the throngs of people who lined up outside stores to snap up discontinued and deeply discounted TouchPads hope that the company wouldn’t abandon them, saying the tablet could be resurrected. This, as the TouchPad was on track to become the second-best selling tablet of all time behind Apple’s iPad.

GigaOm’s Ryan Kim says HP’s revelation muddies the waters, making the biggest maker of PCs in the world seem indecisive, which hurts it’s stock price.

There are lessons to take away from HP’s TouchPad firesale, argues Jon Collins of The Register. Chief among them is that there’s a massive pent-up demand for tablets from any manufacturer at the expense low-end PC and netbook sales.

Barnes & Noble forecast sales of its Nook e-reader and e-books would more than double this fiscal year to $1.8 billion. Sales of the Nook group of devices, which includes a standalone as well as a touch-screen reader, rose 140 percent to $277 million in the quarter, comprising nearly 20 percent of the company’s total sales and making it a larger business than the College Bookstore chain of 635 stores, where sales fell. CEO William Lynch said that the bookseller has 26 percent to 27 percent of the e-book market, the same market share he claimed last quarter.

Apple’s iCloud isn’t what it’s made out to be, writes AllThingsD’s Peter Kafka. In a demonstration of Apple’s upcoming music service iTunes Match, what looked like streaming, whereby files are stored remotely and accessed online, was actually just an option to listen to songs while they are downloaded to the device used to play them. And that eliminates one of the main advantages of a cloud: freeing up much needed space on users’ devices. Kafka suspects legal and licensing issues with big music labels and publishers are behind the move.

Google’s board of directors faced a lawsuit for previously allowing Canadian pharmacies to advertise prescription drugs to U.S. customers via the Web search leader. The civil lawsuit claims the ads — which Google stopped displaying in February 2010 — led to what it calls the “illegal importation” of the drugs. Last week, the Department of Justice said Google agreed to pay $500 million to settle the investigation into ads it accepted for online Canadian pharmacies selling drugs in the United States.

Steve Jobs made Apple great by ignoring profit, Clayton Christensen and James Allworth argue. Disruptions, or incumbents moving upmarket and leaving the bottom of the market completely open for scrappy upstarts to enter, can explain the rise and fall of many great companies. But, despite being perceived as a premium, high-end player, Apple under Job’s leadership has not only managed to avoid being disrupted by others, it has disrupted entire industries. Even more impressive, it’s disrupting itself, Christensen and Allsworth add.

Follow me on Twitter at LarsParonen


We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see

re: streaming music with iCloud. I doubt that many people realize that streaming eats up your data allotment, without you even being aware of what’s happening. It is MUCH better to download the song ONCE, then listen to it.

Posted by gslusher | Report as abusive

“there’s a massive pent-up demand for tablets from any manufacturer” that is willing to loose huge amounts of money by selling product for 1/3 of the cost to manufacture.

I wouldn’t want any part of that business model, would you?

Posted by BSimpsen | Report as abusive

“…what looked like streaming, whereby files are stored remotely and accessed online, was actually just an option to listen to songs while they are downloaded to the device used to play them….”

Duh. That’s what streaming is. Playing it while it downloads. Not waiting til it’s finished. If you don’t want to keep the downloaded copy then you can delete it. But if you aren’t given the option to keep it, then you have no choice but to redownload every time you stream.

Posted by Henry3Dogg | Report as abusive