- CrackBerry Master
- 1,075 Posts
Reason for the price drop?
i dont think its because RIM is clearing out and discontinuing like the touchpad, i believe RIM is willing to lose some money and try to get the playbook to as many people as possible and have people play around with it before they release OS2, which they believe will be so good that people will be waiting eagerly for the release of playbook 2 next year, thus boosting the sales of playbook 2. So i think RIM is losing some money here and then making it all back in the future, and try tackle the market that way. Otherwise why would they be selling it through their website instead of just shipping everything to futureshop/staples?
- 11-24-11, 06:33 AM #3
For a couple reasons I'm sure. It's better to sell it at 199 now then at 99 later.
It also gets the is out to more people and by the looks of it to a lot more people.
These people may now want a qnx bb. It should also attract more developers.
And there's probably a playbook 2 on the horizon.
- 11-24-11, 07:16 AM #5
They are selling them for $199 as they had a massive inventory
and they were not selling at higher prices.
Does it help RIM succeed in the tablet market going forward, is debatable.
Will the greatly publicized $199 price make it very hard sell for any more ... Yes
Will these buyers want to buy the Playbook 2 for $500 ... No.
Will these buyers spend significant amounts on apps ... No.
Last edited by Sonic77; 11-24-11 at 07:20 AM.
- 11-24-11, 07:27 AM #6
- 11-24-11, 07:43 AM #7
- 11-24-11, 07:47 AM #8
- 11-24-11, 07:56 AM #9
Supply and demand. More specifically, high supply and low demand. It cost money to have items sit on a shelf so retailers are selling it at a lost if need be. The same goes for cars. When they need the space they are willing to sell it for a bit cheaper than the MSRP. RIM followed suit most likely because they have a crapload leftover and the worth of tablets as with any phone goes down the longer it has been out. So they're trying to sell a sinking ship by making it look more attractive price wise. Not dissing the PB by any means as I had one and enjoyed it. This is just reality that there is a low demand for it.
11-24-11, 08:17 AM #10
- 133 Posts
I think the fact that you can buy from RIM direct for $199 is noteworthy. I assumed that the retailers were driving this by desiring to clear their valuable display space and their inventory. However, if RIM is following suit and clearing their warehouses by moving them at a loss, then I suspect that RIM has a a plan for the playbook that they aren't being up front about yet. Is a new hardware form on its way? Is RIM sitting on huge inventory in their warehouses too that they need to liquidate (I would have thought it would be out into the channels by now)?
There actions seem to be going against their statement that they are "fully committed to the playbook".
- 11-24-11, 08:21 AM #11
- 11-24-11, 08:25 AM #12
Seems kind of obvious to me. Sales were poor, native email was delayed 8months and so to keep product moving, drop the price.
It is already expected that models with 4g radios will be released in the new year at some point. My prediction is they will come out with playbook 2, new models with 4g and native email etc... it will be a new relaunch.
PB 1 will get the OS update... but it will either be the "older" model or just play second fiddle to the new 4g model that will be released.
- 11-24-11, 08:27 AM #13
As for RIM's commitment to the tablet market, see deRusett's posts #7 and 10 in this thread: PB's gone for good in Canada?. I'd say they are committed.
- CrackBerry Abuser
11-24-11, 10:04 AM #15
- 117 Posts
What angers me the most is we can all see where it is going but the amateurs at RIM still muddle along as if they mean something. I had hoped they would let OS2 arrive before blowing the entire inventory of Playbooks out. Now it's clear the PB1 is irrelevant. Find me a time in history a company has discounted this deeply with this mamy units and been able to raise their price back. Nope. I hope I am wrong, but I would bet I'm not. This whole experience with the PB has been one idiotic event after another. It's not even so much about the money, I could care less.
For those who say "oh well technology goes down in price". Get your head out of the sand. I have never had a device that was being sold by the manufacturer for 60% off less than a year after initial release.
I hope OS 2 comes with a time travel app.
11-24-11, 10:17 AM #16
- 133 Posts
I recognize that they "reaffirmed their commitment" to the playbook at the innovations forum in Toronto. They even showed off native email and features of OS2. However, they did exactly the same thing at Blackberry World way back in May and nothing came. I suspect that they will never fully announce that the playbook is being discontinued like the HP tablet, instead my guess is that it is put on the back burner as they try to get QNX phones to market as well as see what iPad 3 comes out with. I can't see them placing any new orders with their manufacturers/component suppliers in the near future.
- CrackBerry User
11-24-11, 11:13 AM #17
- 38 Posts
A possibility with this strategy for RIM is that they are trying to get as many people onto the QNX platform as possible now. The first BBX phone is supposed to have the same screen resolution as the PB and so making it possible to have apps work universally(on both BBX and PB devices). This would give an incentive for the current/new PB owners to purchase a BBX phone on their next renewal, leading to an increase in apps purchases, giving developers more reason to release new apps, etc etc...
I think it is a great strategy, especially considering the way the general image of RIM has gone recently, this is probably their best shot at rebounding in the next year to two years.
- 11-24-11, 11:43 AM #19
I think what you said will be the ultimate outcome, but I think it will be more happy accident than anything else.
Posted from my CrackBerry at wapforums.crackberry.com
- 11-24-11, 11:53 AM #20
everyone seems to be singing the same tune on this one. Make a loose now to make a profit later, its a basic strategy in the retail world. The PBs undersold like crazy and this is how RIM is telling the world 'hey our product rocks and we are gonna let everyone buy one at super cheep prices so they can see it.' It is a great device and is only gonna get better with OS 2.0.
- 11-24-11, 02:55 PM #22
Who is this mysterious deRusset anyway? Everyone seems to respect his opinion, he is like the Zorro of the BB world - rides in with new info from Waterloo, carves a BB in someones shirt and rides back off into the sunset. Is he connected with RIM? Does he have credibility and how? He seems to, I don't know why though, I think it's because he has a tie. lol
Last edited by blackjack93117; 11-24-11 at 11:07 PM.
- 11-24-11, 03:02 PM #23
Of course when RIM does it everyone will be crying foul - they got ripped off for buying PB 1, want a rebate, free apps, etc...I know I know, they bought it thinking it would have native email I know don't say it...
They will still support the OS, and many new things will be retrofitted back to PB 1 that do not rely on new hardware - you will still see OS upgrades.
Last edited by blackjack93117; 11-24-11 at 03:11 PM.
11-24-11, 03:05 PM #24
- 1,990 Posts
The ifad owns the space and the crapple infatuated U.S. media can talk of nothing else. There is no way to break into the tab market unless RIM undercuts the competition. Lack of a "home button" and stupid squabs being such a negative upon initial release is something that no one at RIM anticipated. Ergo, drop the price and get it out there. Judging from anecdotal inventory reports and new member sign ups here, the plan is working.
- 11-24-11, 03:13 PM #25
2. Maybe It depends what Playbook 2 will offer. I think RIM should come out with low end and high end version of playbook.
3. No I do not see co-relation. People will be buying apps as long as they are quality apps.