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iPad Power with Kindle Fire or Cheap TouchPad Prices at Least 2 Years Away, Says Peter King

With the growing success of apple’s Ipad, HP decides to create a similar product but was not successful in selling it. Peter king who is an analyst at Strategy Analytics stated in an interview with Wireless and Mobile News that apple will continue to dominate the market for such products.

Seeing the success of apple Ipads, HP created about one million TouchPads, but people were not buying them to the extent that the majority were not sold and Best Buy tried to return to HP over 200 thousand TouchPads because they were not selling. HP significantly lowered the price of the TouchPad hoping consumers will buy them after the price cut, but there was still a growing dissatisfaction with the product . Those who bought them wanted to return them back to the store because they were “rubbish” and lacked many features they expected.

This directly relates to the formation of information cascades. With the apple Ipad product, a cascade of acceptance of the new product occurred while a cascade of rejection of HP TouchPads occurred. When Apple’s Ipad first came out, the first users of it were satisfied and others were influenced by the positive payoff experienced by them and decided to buy it. However, when HP decides to make a similar product, people still chose the apple product because the majority of people were using it as opposed to trying out HP’s new technology. The fact that the majority were using apple’s product signaled that the technological product was good and buyers continued purchasing it. On the other hand, to increase its sales, HP decides to lower the cost of the product and that persuaded some people to buy it. Those who first bought it wanted to return it which gave a bad signal about the product and influenced other people’s decision to reject it.



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November 2011