RIM's BlackBerry PlayBook Getting Trounced by Apple's iPad, Price Cut Coming

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News Posted: Fri, Sep 16 2011 2:30 PM
Research In Motion is learning a hard lesson in tablet sales. If you want to compete with Apple's iPad, you can't launch a half-baked slate and hope buyers will scoop up your product based on promise and potential. Yet that's exactly what RIM did when it launched its BlackBerry PlayBook, a nifty 7-inch tablet with a slick operating system, intuitive controls, awesome multitasking, and other high points, but missing critical features like native email and contacts support -- do'h!

As a result, RIM only sold 200,000 PlayBook during the last quarter, a rather dismal number that in and of itself doesn't tell the whole story. After reducing its outlook, RIM was hoping to sell 490,000 PlayBooks last quarter. Ouch. But what really hurts is that amounts to a little less than 1 PlayBook for every 23 iPad devices sold during the same period. That's what you call a gut punch, and now it's time for a gut check. Should RIM abandon tablets like HP did?

That isn't in the cards, at least not yet. Instead, RIM Co-Chief Executive Mike Lazaridis told investors the company is starting up a bunch of programs designed to push PlayBook sales, including special rebates and deals for existing customers, CNet reports. How much of a price cut? Mr. Lazaridis didn't say, though it's safe to assume it won't be a $99 fire sale.


Pricing is only part of the problem, however. For many the real deal breaker is the lack of native email, contacts, and calendar support. These are inexcusable omissions for a modern device and it's even more egregious that they're still missing. Come next month, however, RIM's PlayBook 2.0 update will address these shortcomings and throw in an Android app emulator for good measure, as well as some other goodies.

Too little too late? Not really. As we stated in our review, "our feelings towards the PlayBook are positive," RIM just needs to ship a finished product and do so at a discounted price. Hang tight for a month and it looks as though both of those will happen.
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omegadraco replied on Fri, Sep 16 2011 11:43 PM

Hmm... RIM may be doing all this but I am not sure they will be able to compete in the market. I feel like the market is flooded with so many different choices that consumers are confused. So the consumer is simply going for the iPad because it is easy.

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AKwyn replied on Sat, Sep 17 2011 12:46 AM

Well a lot of people went towards the HP TouchPad when it's price was heavily discounted; so this discounted price is a really good idea because if word gets out that it's a great cheap tablet then PlayBook sales will go through the roof the same way the TouchPad did. I hope...

 

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gazd1 replied on Sat, Sep 17 2011 5:18 AM

Well maybe that is true about the discounted price, but I have read that the brand name blackberry ain't doing so well no more.Wink In fact they seemed to be only for the business market really & now there is a whole lot more android based smart phones that has out done the blackberry name & so I guess that maybe they left it too late to bring this tablet out.Wink

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News:
Should RIM abandon tablets like HP did?

"NO, RIM and other companies should keep on making Tablets, so we can then get them for $99 when they fail to sell, which is what every company current and future manufactures of tablets, has or will realize at one point, that the Tablet Market is Only for Apple, leave that alone. The competition can have a faster processor, more RAM,  and more features, but they dont have an extensive and as deep of a support as the Ipads, in terms of Applications and fluidly in user experience, everything just works great on the Ipad."

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AKwyn replied on Sun, Sep 18 2011 3:33 AM

Wheatley:
"NO, RIM and other companies should keep on making Tablets, so we can then get them for $99 when they fail to sell, which is what every company current and future manufactures of tablets, has or will realize at one point, that the Tablet Market is Only for Apple, leave that alone.

Wow... You're saying that you want Apple to have a monopoly over the tablet market?

Competition exists for a reason. I mean just look at AT&T; they had a monopoly for over 60 years before the DoD took action to split them up. I mean without competition, there's no innovation and you have to pay higher prices for everything. I mean do you want to pay $1,000 for your iPad?

In any case, what I said above applies. If discounted enough; they can get word of mouth out and they can get people to buy their tablets and make it a "profitable" part of the business. I mean if everybody wanted them to fail just so we can get $99 tablets; well that's low in the lowest possible form. They put alot of R&D dollars into this product, they expect them to sell like hotcakes and yet we let the company lose money while we wait for it to drop down to $99, what are we thinking? This is why the economy is the way it is, because of this.

Samsung is doing well with their tablets, so I ask why RIM, HP and all these other manufacturers have yet to realize simple fact that could lead to their tablets selling like hotcakes. I guess we will never know...

 

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