With HP set to release its quarterly earnings today, the company has experienced another setback in sales with its TouchPad tablet.
According to a new report, the TouchPad is failing to sell at Best Buy, with the retailer sitting on more than 90 percent of its original inventory. Sources claim the electronic store took stock of 270,000 TouchPads and has only sold 25,000. Other sources familiar with the sale figures claim 25,000 may even be generous and it does not take into account units that consumers return to stores for refunds.
Best Buy is quite unhappy with the amount of space the unsold tablets have taken up, according to the report, and wants HP to take them back. Though neither company commented on the matter, sources say a senior HP executive is set to visit Minneapolis soon to discuss the issue with Best Buy executives.
It appears consumers do not wish to purchase the device, evident in the measly 612 takers for a $120 discount on an entry-level 16GB TouchPad recently offered on the daily deal site Woot. Even after HP cut the price of the tablet by $100, other retailers, including Wal-Mart. Microcenter and Fry’s, are facing difficulties selling the slate.
Some analysts believe HP’s sudden price cuts have caused consumers to wait in hopes of a greater discount on the device. With the current price for a 16GB model at $399.99, the TouchPad already falls on the lower end of the price spectrum for tablets.
With news of such poor sales emerging, HP may decide to withhold information regarding TouchPad figures or opt to announce channel sales or units shipped, which are the number of units sold to retailers, rather than the amount of units bought by customers.