[LMB] OT: sort-of -- Internet/computer access for the poor

Paula Lieberman paal at gis.net
Sat Sep 24 18:56:03 BST 2011


-----Original Message----- 
From: Timothy Collett
Sent: Thursday, September 22, 2011 11:59 AM
To: Discussion of the works of Lois McMaster Bujold.
Subject: Re: [LMB] OT: sort-of -- Internet/computer access for the poor
Easy, if HP were losing money, they wouldn't have committed to have more 
made  to meet the demand at $99.99, they would have sold what the production 
was and not made any more of the things.... if someone is selling for less 
than production cost, and company with the brand has announced "Clearance 
sale!" the company with the brand name does NOT go and order more produced 
to sell if the sales price is below the production costs!

(Additional note, what people estimate as production costs, may not be 
accurate--if HP is in patent pools and NOT paying royalties thereby for much 
of the intellectual property for tablets--and HP probably has a LOT of 
patents for touch technology, they were the first company out with a 
comptuer with a touchscreen, and have have touchscreen device products over 
the course of years in their product lines....) the actual "cost" to HP for 
the tablet production might be rather less than most analysts realize (that 
is, with the patent royalties not being paid, that can dramatically cut 
component costs....)

On Sep 22, 2011, at 11:34 AM, Paula Lieberman wrote:
> The price drop on the HP WebOS tablet down to $99.99 shows the -true- cost 
> of the devices... at $99.99 HP was NOT losing money on them.

Where did you hear that?  Everything I read at the time suggested that the 
component costs were in the $200 range.

Timothy Collett

--

"640K ought to be enough for anybody."
~ Bill Gates, 1981

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