By Patrick Avenell (Follow me on Twitter)

Harvey Norman has slashed the price of the HP TouchPad as it attempts to clear stock of the now obsolete WebOS tablet.

The head of Harvey Norman’s Computers’ Division, Ben McIntosh, contacted franchisees earlier today with the new pricepoints, which were negotiated between the retailer and HP this morning.

Until stock runs out, the 16GB TouchPad will be RRP $98, while the 32GB TouchPad will be RRP $148. TouchPad accessories will be sold at half price as part of this sale.

This move completes the remarkable HP TouchPad price decline, with the 16GB starting at RRP $599, before dropping to RRP $499 pre-launch. The 32GB model was first announced as RRP $699, before going on sale last Monday for RRP $599. Harvey Norman is offering refunds to the 1,200 consumers who purchase TouchPads at these prices.

Click here to sign up for our FREE daily newsletter

McIntosh told that these prices were determined to keep the Australian pricing in line with the US run-out pricing released on the weekend.

"We’re going at 2pm AEST today across the country with a HP TouchPad stock liquidation sale. So we’re going out at 16GB for $98 and the 32GB and $148 and we’re going half-price on all HP TouchPad accessories," said McIntosh.

"We’ve spoken to HP, they’ve obviously realised that there’s an issue, they need to quit the stock rather quickly. After negotiations with HP, Harvey Norman is going to liquidate all the HP stock in stores.

“It’s based on a ‘when we sell out, you miss out basis’, so we can’t order an more stock in obviously.

"HP has negotiated with us to get these prices. I’ve been very clear on the fact that we need to make sure the Australian consumers are not disadvantaged exchange rate wise, so if you calculate those prices and look at what Best Buy did to clear their stock, Australian consumers are much, much better off."

Harvey Norman and HP will work together to ensure that consumers understand that product of this device is being stopped and that the WebOS operating system will not be supported in the future. McIntosh said that warranties on the devices will be honoured.

"All warranties will be honoured, the HP WebOS platform will continue, so customers can still use it. Is it going to be further developed? No it is not. I’m quite happy to sell the TouchPad for these clearout prices, rather than the full tote odds which is what it was before."

Click here for the full interview with Ben McIntosh regarding the withdrawal of the HP TouchPad.