HP's Web OS Touchpad with 32 GB is now 7% cheaper at $560 on Amazon and while the 16 GB model is offered at a token 2% discount which probably means there isn't much room to drop the price further on the lower end model.
What does this mean? Tablet Planet concluded that the demand for the Touchpad is soft. Apparently, this was not the first price drop on HP's tablet but the second price drop just 17 days after its release.
I do have to stress that Amazon is famously known to play around with prices quite often, sometimes on a daily basis.
I did a quick check around the Web and found that no one else has discounted the 32 GB Touchpad to the degree Amazon has. We probably will not know until HP reports their earnings. And if their answers are as vague as RIM's when pressed about the Playbook sales, we may not know for a long time.
Source: Planet Tablet