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We were wondering how exactly HP was going to handle the glut of TouchPads in the market now that they’ve decided they’re done making hardware for webOS. Now we have our answer: fire sale!

In a memo sent to HP affiliates, the company issued the declaration to begin liquidating TouchPad inventories, with a price cut of $300 or more:

HP will be lowering the price of the TouchPad beginning Saturday 8/20/11. This is the lowest price ever for the TouchPad so please post it as soon as it goes live.

16GB TouchPad- $99; 32GB TouchPad - $149

The pricing may be set to go live tomorrow, but that hasn’t stopped some retailers. Best Buy Canada and Future Shop have already implemented the new pricing, and we expect others will follow through shortly. It seems HP’s finally looking to get those lofty unit sales numbers they wanted, though they can throw profit margin out the window. Unknown: if, when, or how much HP will cut the price of the sort-of-launched 64GB TouchPad.