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  1. CarlJF's Avatar
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    #26  

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    Quote Originally Posted by CairnsRock View Post
    Sorry, I respectfully disagree. Having already taken a write down on pb inventory. To take an additional write down to make more, to sell at a loss, would be fiscally irresponsible in the extreme and possibly may be a securities violation.

    Share holders expect companies that they invest in to sell products at a profit. I do understand the premise about an investment to expand the customer base, but its best that customers want your product and are willing to pay a fair price which produces a profit. If they are not. Its over.
    It's not a security violation. many companies have used, and still use this strategy. Just think of Amazon and the Kindle, which is sold at lost or at cost. One of the best known example is GM, selling their cars at lost for years only to keep their #1 positions as a car maker...

    That said, I agree with you that it's not a viable long term plan. In the case of RIM and the PB, they may guess that it may be easier to sell a BB10 device to someone buying a PB now than if this someone is rather buying an iPad or Nexus. Actually, RIM is in a position where they have to do anything they can to keep what customers they still have until the BB10 launch. Anyway, nobody expects the company to make any profit until then. And if BB10 is a fail, the loses from the PB will just be irrelevant. On the other hand, if BB10 is a success, RIM will rapidly regain the losses by selling PB10 phone to these additional PB owners. Something you may have a hard time to do if you had let them buy an iPad instead of a PB...
  2. gng11's Avatar
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    #27  

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    10-inch, and thinner please. Anodized aluminum version preferred!!
  3. CairnsRock's Avatar
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    #28  

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    Quote Originally Posted by CarlJF View Post
    It's not a security violation. many companies have used, and still use this strategy. Just think of Amazon and the Kindle, which is sold at lost or at cost. One of the best known example is GM, selling their cars at lost for years only to keep their #1 positions as a car maker...

    That said, I agree with you that it's not a viable long term plan. In the case of RIM and the PB, they may guess that it may be easier to sell a BB10 device to someone buying a PB now than if this someone is rather buying an iPad or Nexus. Actually, RIM is in a position where they have to do anything they can to keep what customers they still have until the BB10 launch. Anyway, nobody expects the company to make any profit until then. And if BB10 is a fail, the loses from the PB will just be irrelevant. On the other hand, if BB10 is a success, RIM will rapidly regain the losses by selling PB10 phone to these additional PB owners. Something you may have a hard time to do if you had let them buy an iPad instead of a PB...
    Anyways, I think the point is moot, as the pb will probably be on the backburner until bb10 is well established. I enjoyed your thoughts.
  4. RubberChicken76's Avatar
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    #29  

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    Quote Originally Posted by Sriman View Post
    RIM might have a better version of the PB designed and ready
    They do. PlayBook LTE ... 1.5 ghz dual core, over the air 4G connectivity included.

    Are they out of stock on this model (released Aug 2012)?
  5. RubberChicken76's Avatar
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    #30  

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    Quote Originally Posted by CairnsRock View Post
    To take an additional write down to make more, to sell at a loss, would be fiscally irresponsible in the extreme and possibly may be a securities violation.
    Can you elaborate? Not really sure about the fiscal irresponsibility part. If they are faced with the choice of
    1. a) Have them all sent back and refund the channels 100%, then scrap the inventory in stock at additional cost
    2. b) sell-through at a discounted rate to get some money

    Which should they choose. Both are a hit on the bottom line, but one is a bigger hit.

    As for the 'securities violation', I really don't see how that would be. Look at game consoles ... Microsoft spent billions more than they ever earned on the first XBOX, and lost money for quite a while on the second. Ditto for the PS2 and 3 and now the Wii U. The model assumes that games will make the difference, but it doesn't always work that way.
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