The TouchPad models cleared out by early morning at the Best Buy and Staples stores in New York City's Union Square, salespeople at the stores said. A salesman at Best Buy said that buyers were streaming in overnight to buy the tablets and were attracted by the price of the TouchPads, which was $99 for 16GB of storage, and $150 for 32GB of storage.
Heavily discounted Palm smartphones were also picked up and cleared at the Best Buy store, and stocks of phones and tablets will not be refreshed, the salesman said. Best Buy has stopped selling the TouchPad on its website, and HP , where prices were also listed as starting at $99.
The fire sale came just two days after HP said it was looking to sell or spin-off its Personal Systems Group, which markets PCs and mobile devices. HP also said it would immediately stop development of the TouchPad, just a little over a month after the first models went on sale. The company also is discontinuing development and sale of the smartphones, including the Pre and Veer. The devices run on the webOS software, and the company said it would continue development of the OS platform and explore business opportunities around the OS, including licensing it to hardware makers.
The TouchPad went on sale in early July, but it couldn't compete against Apple's iPad and tablets running on Google's Android OS. The TouchPad was also criticized for its bulkiness, slow performance and underdeveloped software ecosystem. By the end of July, HP was offering $50 "instant rebates" to boost sales, and cut the price by $100 the following week. A TouchPad model with 16GB of storage was originally $499, and a 32GB model was $599.
To allay customer fears, Best Buy extended its 14-day return and price-matching policy for those who bought TouchPads prior to the fire sale.