[ansy]

I think if HP has to flood the market with zero margin devices to make a dent it did the right thing by getting out of that business once and for all. It has better ways of occupying its resources.

EDIT: I fully realize the TouchPad costs more to make than $99 and the margin during the fire sale was less than zero. If anything it probably barely covers the cost of supporting the units and software through the support period given some fixed costs of support and the small number of units. That only drives home the point further that HP was right to just shut it down and get out.

[Lewisham]

I don't think the firesale was even zero margin; I think it was just cheaper than dealing with the shipping/storage/recycling costs. I expect the hardware cost more to make than they were sold at.

[reemrevnivek]

You're right: According to iSuppli, the BOM for the hardware was about $300.

http://www.isuppli.com/Teardowns/News/Pages/HP-TouchPad-Carr...

[bho]

Yes, I've read some reports about the hardware cost being in the neighborhood of $300. Definitely not zero margin.

[hollerith]

before the iPad 2 came out, I saw an article here that said that an iPad 1 costs Apple about $300 to make.