Why did the $99 fire sale work if $499 did not?

At $99, TouchPad was a good value proposition — decent hardware, functional OS, half the price of competitors. At $499, it offered no advantage over iPad and had fewer apps. Price is part of the product; the TouchPad at $99 was a different product than at $499.

Did HP actually lose money on the $99 fire sale?

Yes — HP took a $755M write-down on TouchPad inventory and exit costs. The $99 units were likely sold below cost. But clearing inventory quickly was worth more to HP than continuing to hold assets in a market they were exiting.

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// HALL OF FLAME · STARTUP AUTOPSY

Founded	2011
Closed	2011
Country	USA
Sector	Hardware
Total raised	0
Collapse type	Sudden Collapse

HP TouchPad

"49 days on sale, sold more units at $99 than at $499 — HP's fastest-ever fire sale."

$1200M

RAISED

—

EMPLOYEES

—

MONTHS

marketfitSudden Collapse

Unexpected shutdown within weeks of a trigger

// Fatal mistake: Launched against iPad at same price with inferior app ecosystem — zero differentiation for consumer

Key Events Timeline

2011-01

FOUNDING

HP officially announces the TouchPad tablet running webOS, positioning it as a direct iPad competitor at a $499 starting price

2011-07-01

PRODUCT LAUNCH

HP TouchPad goes on sale nationwide; reviewers criticize sluggish performance, app ecosystem gaps, and lack of differentiation from the iPad

2011-08-18

SHUTDOWN

HP announces discontinuation of the TouchPad just 49 days after launch due to catastrophically slow sales, exiting the tablet hardware market entirely

2011-08-21

PIVOT

HP slashes TouchPad price from $499 to $99 to liquidate remaining inventory; the fire sale sells out within hours, moving more units in days than in the prior 7 weeks of normal retail

2011-09

SHUTDOWN

HP formally exits the tablet market and winds down webOS hardware operations; the TouchPad becomes a case study in failed product-market fit and misaligned competitive strategy

🔥 Hall of Flame 72%🏆 Hall of Fame 55%

HP launched the TouchPad running webOS on July 1, 2011 to compete with the iPad.

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// THE HARDWARE GRAVEYARD DOESN'T END HERE

HP TouchPad followed a documented pattern. Identify the same signals in any company before they reach the point of no return.

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