Does HP TouchPad Revival Hide Component Crisis

One of the reasons why HP restarted the production of the TouchPad, other than out of compassion for the thousands of customers that have tried to get their hands on the elusive £89 tablet, could be to please the companies' upstream component suppliers.

As highlighted by Yenting Chen & Joseph Tsai from Digitimes, the abrupt ending of the production of the TouchPad left many Taiwanese component manufacturers in dire straits.

Some, like Inventec, had started to stack up components to produce up to 100,000 7-inch TouchPad tablets that were set to enter production in September, and were taken aback by the sudden change of strategy from Hewlett Packard.

It could therefore be possible that HP decided to restart production to absorb the majority of the component costs, as it is likely that the only differences between the 7-inch model and the 10-inch tablet would be the battery, the motherboard, the screen size and the chassis.

We suspect that production of the 10-inch TouchPad has already started, with HP busy scheduling how to make sure that the rest of the remaining components - including any extra hardware for the 7-inch tablet - can be absorbed.