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Analyst rumor: RIM stops BlackBerry PlayBook production [U]

updated 12:50 pm EDT, Thu September 29, 2011

Collins Stewart claims RIM ending PlayBook as-is

(Update: denied) Collins Stewart analyst John Vinh in a research note put forward a controversial claim that RIM was stopping BlackBerry PlayBook production. In addition to worker layoffs, RIM's supplier Quanta allegedly stopped production for all intents and purposes. "Due diligence" had also determined that RIM had stopped making additional tablet projects, he said.

RIM has been contacted by Electronista for commentary but hasn't had an opportunity to respond as of this writing.

Stores have been instituting rapidly increasing price cuts even before RIM's official go-ahead on price drops. A full shutdown, would nonetheless contradict RIM's public show of confidence during its fiscal results call. Next month, it plans a PlayBook 2.0 update and a video store that it hopes will re-energize sales along with official discounts.

The door is equally open to the rumor inaccurately reflecting a short-term production halt. Companies that have too much unsold stock will occasionally freeze production to churn through inventory before resuming later. If RIM were to truly have no new PlayBook models in the pipeline, however, it would at best point to the existing model being in stores at least as long as its peers before being phased out or replaced.

Update: RIM has quickly denied the rumor, saying it was still "highly committed to the tablet market" and that the checks were "pure fiction."



By Electronista Staff
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Comments

  1. prl99

    Dedicated MacNNer

    Joined: Mar 2009

    0

    try again

    Your previous article talks about Best Buy and Carphone significantly dropping prices on PlayBooks. That's the first sign they're clearing inventory in an attempt to not lose money. RIM can be committed all they want but vendors dumping product is a sure sign the PlayBook is not going to last.

  1. Jeronimo2000

    Forum Regular

    Joined: Aug 2001

    +1

    Of course they're NOT stopping!

    Why would they stop production? I'm sure they've made a great deal with Amazon, who will buy all those unsold PlayBooks dirt cheap, rip them apart, and use them as spare parts for those new Kindle Fire tablets.

    Because: have you ever compared the PlayBook specs with those of the Fire? :)

  1. facebook_Robert

    Via Facebook

    Joined: Sep 2011

    -2

    Pure fiction

    After you found out the rumor was pure fiction, you really should pull the article.

    I'm not on the site to read fiction - I don't know whats confusing about that, do you really think we want to read user-submitted corporate fan fiction??? C'mon.

    Really guys.

  1. dpicardi

    Forum Regular

    Joined: Sep 2006

    0

    Hold on a sec...

    Do you mean to tell us that you believe everything an executive says? Please.

    I'll believe verified inventory/supplier checks over what an executive says all day long.

    Also, they both could be telling the truth. RIM could be completely scrapping the existing playbook and still be "committed" to the tablet market (ie they are coming out with a new version.) Which would be a wise decision given how crippled their existing offering is.

  1. facebook_Robert

    Via Facebook

    Joined: Sep 2011

    +1

    Blackberry has not stopped tablet projects

    It makes perfect sense they'd stop producing a tablet if they have enough supply to fill demand - price cuts suggest the very same thing has occurred, they have oversupply.

    It's entirely another thing to say all tablet projects have halted and that's a rather idea - its on par with saying they've dropped all future phone development.

    If RIM isn't going to make phones or tablets, what is their business going to be exactly? They've decided toc ommit corporate suicide?

    The reality is - RIM only has this one business. They aren't a samsung or sony, or hp, that can withdraw from the tablet market and will continue on with their TV or printer business.

    This is their only business. QNX is their only path forward.

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