Wednesday, August 3, 2011

The HP TouchPad takes on the iPad2- Part Two

Last week we compared the technical features of the HP TouchPad with the iPad2.  While the iPad2 has some advantages, the TouchPad proved itself to be a strong contender against its dominant Apple rival.  Brushing aside the technical aspects, let's take a look at price.  

When buying new from retail outlets, the HP TouchPad and iPad are equal.  See the graph below:

Prices for New TabletPCs at retailers

These prices, however, don't reflect the $50 instant savings that HP is offering through September 10th.  So, until September 10th, the TouchPad is certainly the better deal at $449 for 16GB and $549 for 32GB.  You have to weigh that cost savings, however, with the lack of app support compared with the iPad.

Pricing on the secondary market is where things get much more interesting.  Despite the longer shelf life of the iPad2, it is fairing much better as a used product than the HP TouchPad is fairing new on the secondary market (eBay, Amazon sellers).  Take a look:

Prices on the Secondary Market

There is a huge swing.  While used iPad2s sell at or near their full retail value a full four months after launch, the HP TouchPad price tumbles 9% for the 16GB version and 13.5% for the 32GB version after only one month.  And this is for a brand new TouchPad, not used!  What this says is that the iPad will certainly hold its value over the long term.

So, what does this mean to you?  It means, that if you like both products equally and price is your main concern, the TouchPad is the right choice.  However, if you are concerned about how much you can sell your TabletPC for when it comes time to upgrade, then the iPad2 is the safer choice.

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