updated 04:15 pm EDT, Wed September 7, 2011
Canaccord lowers PlayBook targets on low sales
Canaccord Genuity analyst T. Michael Walkley dropped his estimates for RIM's BlackBerry PlayBook on Wednesday based on investigations of its performance in shops. He dropped his target for 2011 sales from 2.2 million down to 1.5 million based on checks with retailers. They were still facing "soft" sales, and price drops like Best Buy's Labor Day weekend sale were a plan to "move inventory," he said.
Sales of the iPad 2 weren't slowing down, Walkley said of similar investigations, leading him to suggest PlayBook sales wouldn't get better. The researcher went on to stress that there would be added heat from extra Android tablets, including the HTC Jetstream and the Amazon Kindle tablet.
Expectations for 2012 were also dropped from 3.2 million to 2.5 million. The figure is difficult to gauge as RIM is presumed to be working on a PlayBook sequel.
At 1.5 million in 2011, RIM would see virtually flat shipments from the 500,000 delivered in spring. Apple is expected to increase shipments as it braces for the holidays and could move as many as 20 million iPads, guaranteeing that RIM would lose relative share even if its units were steady.
RIM won't provide its own insight into its performance until its summer results appear on September 15. However, its sales are thought to be hindered by the lack of native e-mail, its dependence on having a BlackBerry to get more than Wi-Fi access, and a lack of third-party apps.