Bloomberg News

Hewlett-Packard to Start Selling Its IPad Rival in July

June 09, 2011

(Updates share price in last paragraph.)

June 9 (Bloomberg) -- Hewlett-Packard Co., hoping to tap into the tablet market dominated by Apple Inc.’s iPad, said it will begin sales of its TouchPad computer in July.

The tablet will sell for $499.99 to $599.99 depending on storage capacity, Palo Alto, California-based Hewlett-Packard said in a statement today. Sales will begin in the U.S. on July 1, followed by the U.K., Ireland, France, Germany and Canada.

The first version of the TouchPad will have Wi-Fi technology to connect to the Internet through wireless hotspots. A future version of the device will connect through AT&T Inc.’s wireless network, Hewlett-Packard said.

Personal-computer makers are rushing into the tablet market as consumers buy the smaller, touchscreen devices and demand for traditional PCs slacks off. This week, research firm IDC lowered its estimate for growth in PC shipments this year to 4.2 percent from a February estimate of 7.1 percent, citing competition from tablets and smartphones as well as the sluggish economy.

The TouchPad will compete with the iPad, Motorola Mobility Holdings Inc.’s Xoom and the Research In Motion Ltd. PlayBook.

Hewlett-Packard added 10 cents to $35.46 at 4 p.m. in New York Stock Exchange composite trading. The shares have dropped 16 percent this year.

--Editors: Peter Elstrom, Jillian Ward

To contact the reporter on this story: Greg Bensinger in New York at gbensinger1@bloomberg.net

To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net


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