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