After deciding to cut TouchPad prices in the U.S., Hewlett Packard has announced that it would also cut HP TouchPad prices in Australia by $100.

The TouchPad will now cost $499 for the 16Gb WiFi version and $599 for the 32Gb WiFi version. It will be available for Australian customers next Monday in Harvey Norman stores.

Before the discount, retailers were promoting the TouchPad with prices of $598 for the 16Gb version and $698 for the 32Gb one.

"HP continually evaluates pricing for its products and is pleased to offer a permanently reduced price on the TouchPad products effective immediately," the company said in a statement.

"Now consumers can have all the benefits of webOS -- multitasking, Synergy and Just Type - at a starting price from $499 including GST.

"This move will help bring the HP TouchPad and webOS to a larger audience, benefitting consumers and developers."

Analysts have suggested the price discounts so soon after the product's release could be a sign that the TouchPad isn't selling as well as HP had hoped.

Despite the discounts U.S. prices are still cheaper with the 16Gb versions available for US$400 and the 32Gb costing only US$500. However, the price cuts will make the HP TouchPad a cheaper alternative to Apple's iPad2 and more in line with Android tablets. The price cuts will make the TouchPad more competitive in the increasingly aggressive tablet price wars. This could only be good for consumers if Android manufacturers lower prices to try to match Hewlett Packard.