Amazon and Costco kick off HP TouchPad price war | webOS Nation

Amazon and Costco kick off HP TouchPad price war

by Derek Kessler Mon, 18 Jul 2011 2:38 pm EDT

Yesterday was supposed to be the “hard launch” date for the HP TouchPad, with all sorts of advertising and training and other supposedly awesome things set to happen. While things seem to still be winding up, the retail side of things is definitely heating up. With the ad embargo date of July 17 past us, retailers and Costco have taken to cutting into the price tag of the TouchPad, with Amazon hacking $10 from the $499.99 price tag of the 16GB tablet, and $40 from the $599.99 32GB tablet. Costco, meanwhile, has chopped $10 from the 16GB and $20 from the 32GB, though the do appear to be throwing in a generic neoprene sleeve with the higher capacity version. Either way, the prices at both retailers are below HP’s permitted advertising price, which requires that you add the tablet to your cart to see the price.

It’s too early in the game to call this price cutting a sign of poor sales. Instead, what we’re seeing is retailers like Amazon and Costco doing what they always do: undercutting the competition on price in order to secure more sales at the expense of a few dollars profit. It’s a business model that’s worked well for them up to this point, so why stop doing it with the TouchPad?

Source: Amazon, Coscto (16GB, 32GB); Thanks to everybody that sent these in!