HP Exits Low-End Tablet Market To Focus on Profitability

Tech giant HP is exiting the low-price tablet market. In fact, the company has already put the kibosh on low-end Android tablets. You can no longer find many of them on HP?EU?s Web site.

Although HP is still selling the HP 7 G2 tablet (pictured) for $99 and the HP 8 G2 tablet for $149, neither model is currently in stock. It seems likely that these items have been discontinued, though you can still find them via some e-commerce sites like NextWarehouse.com and Buya.com at deep discounts.

"We are going to focus where there is profitability and growth and will not chase the low-end tablet market,?EU? Ron Coughlin, president for personal systems at HP, said in a statement. ?EU?We are focusing on business mobility to deliver tablets built for field service, education, retail and healthcare.?EU?

Cutting the Fat

Low-cost tablets seem to be a dime a dozen, especially low-cost Android-powered tablets. One of the most popular is Amazon?EU?s Fire tablet. The seven-inch model runs just $49.99. Asus, Lenovo and Acer are also competing in this end of the tablet market.

But HP is not getting out of the tablet business altogether. The company is still selling the Envy 8 Note tablet running Windows 10 for $329.99, for example. But there is a clear preference for Windows over Android in its remaining stock.

We caught up with Roger Entner, principal analyst at Endpoint Technologies Associates, to get his thoughts on HP?EU?s withdrawal from the low end of the tablet market. He told us the tablet market is under assault.

?EU?Even Apple, after creating the market, is having a hard time making a go of tablets,?EU? Entner said. ?EU?Clearly HP [Inc.] has to right the ship, now that it's spun out and on its own. Trimming unprofitable lines in declining segments seems like as good a...

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