John Paczkowski

Recent Posts by John Paczkowski

TouchPad Encore Will Keep HP’s Suppliers From Getting Touchy

Hewlett-Packard’s surprising decision to produce another run of its TouchPad tablet so soon after announcing plans to discontinue it might be the result of a poorly thought-out strategy, but it’s not nonsensical. As we suspected, there’s a very good reason for it, beyond satisfying the sudden “cultlike” demand for the ill-starred device: Appeasing the suppliers that manufactured components for it, expecting production runs of 500,000 to one million units.

“While the company is stating it is doing so to satisfy stronger than expected demand, our checks with supply chain sources indicate another reason may be to fulfill commitments to component suppliers and manufacturing partners,” Sterne Agee analyst Shaw Wu says. “This makes sense as it is not in HP’s interest to alienate the supply chain base and the company may not lose as much money as it is bringing in some revenue as opposed to taking a full write-down on commitments with no revenue.”

Better to meet those supply-chain obligations than annoy the supply chain, which will presumably continue to figure prominently in HP’s PC business whether the company spins it off or sells it outright. And if you generate a bit of buzz in the process, all the better. As Wu notes, the larger the installed base of TouchPad and webOS devices, the more valuable webOS is in a potential sale.


Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

Latest Video

View all videos »

Search »

Another gadget you don’t really need. Will not work once you get it home. New model out in 4 weeks. Battery life is too short to be of any use.

— From the fact sheet for a fake product entitled Useless Plasticbox 1.2 (an actual empty plastic box) placed in L.A.-area Best Buy stores by an artist called Plastic Jesus