Commentary

Ed Hansberry
 

RIM Cuts PlayBook Price By $300

Research in Motion has dropped the price of the base model of its tablet temporarily to $199 in what appears to be a last ditch effort to generate some enthusiasm.

If the BlackBerry PlayBook has been on your wish list, now is the time to dive in. RIM has chopped $300 off of every model. The 16-GB model is now $199, the 32-GB model is $299, and for $399, you can have the 64-GB version. Will this spur sales and help create a user base?

RIM only shipped 200,000 in its first quarter of launch, a disappointing number when you realize that the iPad 2 moves that same amount every 48 hours.


More Mobility Insights

Webcasts

More >>

White Papers

More >>

Reports

More >>

When HP dropped the price of the TouchPad to $199, retail outlets like Best Buy blew through existing inventory before lunch. Everyone recognized that for what it was: a rock-bottom closeout special. For $199, you got what you got and recognized that platform updates would be few, if any, and the developer interest would rapidly evaporate since the platform was being discontinued.

Retail outlets, including WalMart, Office Depot, Radio Shack, and Best Buy will be holding the PlayBook sale until at least December 3, so don't worry about standing in line on Black Friday.

This sale is different in at least two ways from the TouchPad sale. First, the PlayBook isn't yet a standalone device. Neither BlackBerry email nor the popular BlackBerry Messenger service are available on the PlayBook. The device was supposed to be updated this year to include those features, but it has been pushed to 2012. That is important because the PlayBook would only appeal to existing BlackBerry users. Using the BlackBerry Bridge, you can get your corporate email and use BBM on the tablet, but without a BlackBerry, the tablet is limited. Therefore, the market is instantly limited, $199 price or not.

Second, and this is good news, the PlayBook isn't being discontinued. Buying one at this price if it fits your needs is an investment that should pay off for at least a year or so, assuming RIM continues to support it.

There is no doubt RIM is taking a loss on each one sold, but it becomes a marketing strategy to grow the user base. If this sale is only half as successful as the TouchPad sale, it should breathe new life into the struggling platform. The big question, though, is are there enough BlackBerry fans left that want to put yet more money into the platform?


Related Reading




Currently we allow the following HTML tags in comments:

Single tags

These tags can be used alone and don't need an ending tag.

<br> Defines a single line break

<hr> Defines a horizontal line

Matching tags

These require an ending tag - e.g. <i>italic text</i>

<a> Defines an anchor

<b> Defines bold text

<big> Defines big text

<blockquote> Defines a long quotation

<caption> Defines a table caption

<cite> Defines a citation

<code> Defines computer code text

<em> Defines emphasized text

<fieldset> Defines a border around elements in a form

<h1> This is heading 1

<h2> This is heading 2

<h3> This is heading 3

<h4> This is heading 4

<h5> This is heading 5

<h6> This is heading 6

<i> Defines italic text

<p> Defines a paragraph

<pre> Defines preformatted text

<q> Defines a short quotation

<samp> Defines sample computer code text

<small> Defines small text

<span> Defines a section in a document

<s> Defines strikethrough text

<strike> Defines strikethrough text

<strong> Defines strong text

<sub> Defines subscripted text

<sup> Defines superscripted text

<u> Defines underlined text

InformationWeek encourages readers to engage in spirited, healthy debate, including taking us to task. However, InformationWeek moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. InformationWeek further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.
Subscribe to RSS

Resource Links