RIM has 800,000 PlayBooks in excess inventory

By on September 21, 2011, 12:30 PM

Research in Motion (RIM) has nearly 800,000 BlackBerry PlayBook tablets sitting idle in inventory. RIM had $1.372 billion in inventory at the end of last quarter, up from $618 million at the end of February, according to findings from the Guardian.

RIM’s PlayBook was manufactured by Quanta Computer at their Taiwan factory. Fubon Securities analyst Arthur Liao said that the company had shipped 1.5 million PlayBooks in the first half. Production has declined significantly as of late as RIM struggles with excess inventory.

Last week RIM announced they had only shipped 200,000 tablets in the second quarter. Earlier accounts from the company say they shipped 500,000 PlayBooks in the first quarter. Simple math tells us that if they did receive 1.5 million units from Quanta, there are some 800,000 PlayBooks still unaccounted for.

Earlier this month we reported that Best Buy had slashed $150 off the 64GB tablet and $50 off the 16GB model, bringing the prices down to $550 and $450 respectively. It’s a good start but RIM will have to do much better to keep the remaining 800,000 tablets from collecting more dust.

Perhaps RIM should take a page from HP’s playbook (no pun intended) and drop prices to $99 for the entry-level PlayBook to clear out excess inventory. At the current rate and price point that RIM has on the tablet, it’s unlikely that they will push 800,000 units anytime soon.

The Guardian notes that RIM indicated in their earnings call last week that they would start price promotions over the second half of the year to get devices in customer's hands.




User Comments: 14

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mosu said:

It's a good tablet and will sell quickly at 200$ price point...249 to 299 for the 64Gb model and with massive user base RIM could ship a new model at a higher price point

1977TA said:

My thoughts exactly mosu.

LNCPapa LNCPapa said:

I'd probably pick one up just to play with at the <$200 point.

mosu said:

On Bloomberg, a good news for me: HP board considers ousting Apotheker. Let's hope they have the guts to do it!

Jibberish18 said:

You know, it would be typical if RIM pulled an HP. Rather than tell their engineers to optimize and improve the bloody hell out of their Tablet OS, they just give up on it. Can't compete with hoards of Android Tablets? Leave the tablet business! Yeah. That simple. Don't understand companies. You really want to attract people? Make your OS as smooth as Apples. Talk to Flash and say "Hey Douche Canoes! Let's get together for lunch and make Flash run smooth aye?" Talk to developers and give them an incentive to make apps for your OS or at least provide them a team to help them or software tools to help them for free or SOMETHING. <--All this stuff? Worthless apparently. Don't listen to me, I'm talking out of my toosh.

Jibberish18 said:

Hey hey! I just thought of something! You know what we can call it if RIM fails the Tablet business just like HP did? A "RimJob". Yeah. I made that up.

Wendig0 Wendig0, TechSpot Paladin, said:

+1 mosu. I'd pay up to $299 for a 64gb playbook.

aj_the_kidd said:

The Guardian notes that RIM indicated in their earnings call last week that they would start price promotions over the second half of the year to get devices in customer's hands.

They would want to do that pretty quickly if they still plan on bringing out the playbook 2

Edit: Just read they planned to cancel the playbook 2, fail on my part

Tekkaraiden Tekkaraiden said:

+1 mosu. I'd pay $200 for an entry level model, heck I'd buy two.

spydercanopus spydercanopus said:

If only they had an email client for playbook at launch.

Guest said:

It amazes me that Apple can get its price for the Ipad, but others can't.

I guess it is the same deal for computers, Apple can get premium prices for OSX systems, but other PC vendors can't.

(I know Apple has better quality stuff, or at least, that is what people believe).

WIN7 is every bit as good as OSX. The big advantage Apple has that they control the hardware and software, while MS only controls the software.

For me, I bought an ASUS EP121. I needed a productivity tablet, and outside of the battery life it is great.

aj_the_kidd said:

Guest said:

WIN7 is every bit as good as OSX. The big advantage Apple has that they control the hardware and software, while MS only controls the software.

Actually the big advantage Apple has is the all "i" devices, as they have been pretty damn good, people automatically think all Apple products are good. These days perception is reality and the perception is that Apple is "cool and hip" and OSX works just as good as Win7 (not the other way around).

Guest said:

Considering "The Mobility Operating System" like iOS, Android OS,

and "QNX Real-Time Operating System" which runs "Playbook",

$$$ "THEY ARE ALL UNIX and LINUX BASED" platform

These are long "Stable" platform !

!!! "Mobility on Multi-Threaded Concurrency OS" are the offering.

It is not about the "Design", "Selling", ...

!!! "Mobility Tablet should include Cellular or Phone Service"

mados123 said:

The question is can it be hacked with Android put on it?

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