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Analyst alleges that RIM is halting production of its PlayBook - possibly exiting the tablet scene

Posted: , by John V.

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Analyst alleges that RIM is halting production of its PlayBook - possibly exiting the tablet scene
If you can’t stand the heat, then stay out of the kitchen. That’s exactly what RIM is facing right now as the latest reports coming in hint that the veteran smartphone maker is contemplating on dumping its PlayBook tablet entirely – and equally shocking, they might be exiting the tablet scene altogether.

Already, we’ve seen HP hitting the brakes with its line of webOS devices, including the TouchPad, which happened to quickly become relevant after HP gave the thumbs up on slashing its price tremendously. Now, it looks as though RIM is facing the same situation as an analyst alleges that they’re halting production with the PlayBook – with future tablet projects being canceled as well. Collins Stewart semiconductor analyst John Vihm wrote on a note, “We believe RIM has stopped production of its PlayBook and is actively considering exiting the tablet market. Additionally, our due diligence indicates that RIM has canceled development of additional tablet projects.”

Recently, we’ve been seeing a handful of retailers across North America cutting the price of the BlackBerry PlayBook to as low as $299.99, which is a good $200 off from its normal sticker price of $499.99. Making matters worse, the news about contract manufacturer Quanta Computer cutting a number of factory workers last week has some foreboding implications this time around.

Granted that it’s only speculation at this point, it goes to show how vital initial ventures are when it comes to new product launches – it’s simply a do or die situation. Furthermore, the competition is increasingly becoming fiercer than ever, and when you look at what Amazon has recently announced, it’ll be interesting to see how manufacturers come to the table in terms of pricing.

We’ve reached out to RIM regarding the situation at hand, but we’re left simply waiting for a response at this point.

source: Reuters

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posted on 29 Sep 2011, 12:19 3

1. DROIDX0430 (Posts: 469; Member since: 24 Nov 2010)

Following HP touchpad's footsteps....next week they will be $99.00--so don't run out and get one yet....

posted on 29 Sep 2011, 16:08

18. CX3NT3_713 (Posts: 2285; Member since: 18 Apr 2011)

Come on fire sale :D $100

posted on 29 Sep 2011, 12:28 6

2. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)

Playbook was DOA

posted on 29 Sep 2011, 13:14 2

8. corporateJP (Posts: 2458; Member since: 28 Nov 2009)

I rarely agree with you, but this is true.

posted on 29 Sep 2011, 13:18

10. snowgator (Posts: 3604; Member since: 19 Jan 2011)

Kind of hard to argue with results. I do not think there really is a Tablet market yet, I just think there is a iPad market and a solid chance for growth for some other tablet down the road. Other Tablet makers need to understand there is no quick bucks here. Be in it for the long haul, or stick to something else.

posted on 29 Sep 2011, 13:36 2

11. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)

Yup all these companies saw the iPad selling so they thought they'd slap something together and make a quick buck. Doesn't work that way. Apple has been building a brand and image for the last ten years.

Playbook, touchpad and Xoom are all examples of products rushed to market and failing as a result.

posted on 29 Sep 2011, 13:48 3

12. remixfa (Posts: 14604; Member since: 19 Dec 2008)

i agree, but it wasnt DoA because it couldnt compete with the ipad or anything like that, it was DoA because they sent out a half assed half baked tablet. They introduced a blackberry device with NO EMAIL for gods sakes.. who the hell thought that was a good idea??????

the fact that those 2 bungling morons havent stepped down (or been forced down with an angry mob carrying torches) from the dual CEO position at RIM is just beyond me.

posted on 29 Sep 2011, 14:27

15. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)

+1. RIM's PlayBook was half-baked when it was released and never recovered from the screw-up. It is a testament to arrogance in the executive suite - build it and the market will buy it....

posted on 29 Sep 2011, 12:36 1

3. Muhannad (Posts: 455; Member since: 20 Sep 2011)

That's disappointing, it came with some serious hardware. But good software makeup for bad hardware which is what makes the iPad 2 very successful but sadly this isn't the case with the PlayBook.

posted on 29 Sep 2011, 12:38 2

4. PimpStrong (Posts: 310; Member since: 25 Jul 2011)

FIRE SALE LOL!! This is not at all surprising.

posted on 29 Sep 2011, 12:47 1

5. gallitoking (Posts: 4721; Member since: 17 May 2011)

another one down... thats what they get for rushing things to compete with Apple... next!!!!

posted on 29 Sep 2011, 15:36 1

17. remixfa (Posts: 14604; Member since: 19 Dec 2008)

aaah yes, the iDiot returns to start a flamewar.

posted on 29 Sep 2011, 12:58

6. GALAXY-S (Posts: 701; Member since: 07 Jun 2011)

wouldnt suprise me .. i havnt anything innovative about bb anymore...

posted on 29 Sep 2011, 12:58

7. GALAXY-S (Posts: 701; Member since: 07 Jun 2011)

that is all..

posted on 29 Sep 2011, 13:15

9. snowgator (Posts: 3604; Member since: 19 Jan 2011)

Guess we will see. 1 rumor doesn't make it true, but this kinda makes sense. Outside of Apple, who can truly afford to keep a full line of products supported trying to do both hardware and software at the same time in this quickly changing market? RIM is bleeding profits. If they really want to compete in the smartphone market and get the QNX-horse to market, can they spread their limited resources thin enough to develop the Playbook as well?

Focus on what you know, come back to the Playbook at a later date. They need their phone sales to be succesful first.

posted on 29 Sep 2011, 14:08

13. Take back (unregistered)

Guys if you don't mind it would be appreciated if you could give me your honest opinions , I was planning on getting the blackberry playbook 16GB with the blackberry curve 3g on contract for £36 a month for two years, I was very eager to get it at first but now that i read this article I'm not too sure, What do you all think ?

posted on 29 Sep 2011, 14:23 1

14. PimpStrong (Posts: 310; Member since: 25 Jul 2011)

If you like blackberry then get it. The fact that it will run Android Apps means that it has a future(somewhat).

posted on 29 Sep 2011, 14:50

16. theBankRobber (Posts: 682; Member since: 22 Sep 2011)

I went into 2 Sprint stores and 1 bestbuy and tried to play with the playbook, it was stuck on a game and I didn't know how to get out to the him screen. Asked the employees at all 3 stores and they said there not sure. I was like WTF, so I lost untreated in it. I could have Googled it but was only in those stores for 1 thing and dipped out.

posted on 30 Sep 2011, 02:29

19. HTCiscool (Posts: 449; Member since: 16 Jul 2011)

Apart from the iPad the Playbook was the best tablet on the market. much better than honeycomb tabs and unlike them, didn't lag. This is a shame but cone the fire sale ill definitely pick one up. I didn't get there in time for the HP Touchpad one but I would Much rather have a playbook than a Touchpad.

posted on 30 Sep 2011, 03:17

20. dionddc (Posts: 129; Member since: 19 Jul 2011)

Hopefully their QNX phones turn out more successful than the PlayBook. I like RIM, apart from their hardware and their UI, they're definitely still in the game. NFC, a decent app service, and other basics such as navigation etc.

However, if their QNX BlackBerrys don't do the job, they're just going to follow the steps of HP.

Honestly, the smartphone market is getting stripped down right now. I doubt the new Tizen OS that got announced will make any huge strides, even with Samsung behind it.

The only main OSs that would be remain, if RIM doesn't manage to get back on its feet, are Android, iOS and Windows Phone. I don't really count Bada, because its ecosystem isn't as strong, and it's likely that it will only hold minimal market share.

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