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HP to exit the low-cost tablet market

Hewlett Packard has decided to exit the low-cost tablet market in favour of producing high-end tablets. The company has begun to remove listings of a few of its low-cost Android tablets from its website including the HP 7 G2 and the HP 8 G2.

These two tablets which retail for $99 and $149 have not been in stock for several months and it is very unlikely that HP will produce more of these two models. The HP Pro Tablet 408 G1 which is listed at $299 is currently the cheapest tablet available for purchase on HP's website.

The low-cost tablet market has been inundated with cheap tablets from Amazon, Asus, Lenovo, Acer and many other manufacturers. Many of these tablets are selling for less than $100 as the consumer demand for tablets has dwindled in recent years. HP has decided to leave the low-cost tablet market to focus on delivering tablets tailored to the needs of the business, education, retail, and healthcare markets.

Detachable tablets and hybrids which retail at a much higher price point will be HP's focus going forward. Recently there has been a greater demand for productivity based devices that are more adaptable as opposed to tablets designed with entertainment in mind. The IDC has estimated that the detachable segment will almost double in 2016.

The HP Spectre x2 and the Specter x360 are two current offerings from HP that resemble what the company's focus will be in the future in regards to the tablet market. The Spectre x2 retails at $799 and has a detachable screen while the x360 has a screen which folds and transforms into a tablet.

Image source: Ken Wolter / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.