H-P (HPQ) Cuts Tablet Prices Up to 20% Amid Strong Competition (AAPL)

Hewlett-Packard Co. (NYSE: HPQ) shares are trading lower early Monday amid a sharp sell-off in the entire US stock market. The stock last traded at $31.72, down 2.8 percent from Friday's closing price.

Also affecting the stock this morning, Digitimes reports Hewlett-Packard took $100 off the price of its TouchPad tablets, bringing prices to $399 for the 16-GB version and $499 for its 32-GB version.

Digitimes said: "A high degree of homogenization in hardware and software specifications, including the adoption of NVIDIA (Nasdaq: NVDA) Tegra 2 CPUs by over 70 percent of non-[Apple (Nasdaq: AAPL) iPad models and the dominance of [Google's (Nasdaq: GOOG)] Android, is one of the reasons that vendors have to cut their prices in order to boost sales, the sources noted."

Google's (Nasdaq: GOOG) Ice Cream Sandwich and NVIDIA's (Nasdaq: NVDA) Kal-El-equipped tablet PCs should boost fourth-quarter 2011 sales, according to sources, but competition heading into 2012 will be more intense as offerings continue to flood the market.

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