There's been a fair bit of talk about a Touchpad-esque fire sale on the Playbooks. I don't think that this will happen. First, a little info.
We know that RIM has an inventory of at least $1 billion worth of hardware. A good percentage of this is Playbooks. RIM to writedown unsold BlackBerry, PlayBook inventory - SlashGear
The playbook (16GB) currently retails for ~$199. RIM is already taking a loss at this price.
The Playbook hardware is not getting any newer.
So it's pretty easy to see why a lot of people are crying "Firesale".
But the big difference between HP and RIM in this situation is that HP were getting out of the table market. I don't think RIM will do this.
So what to do with a surplus of ageing tablets if not sell them at bargain basement prices?
Donate them to schools!
Think of how this would work for RIM. They donate several hundred thousand playbooks to schools and take a tax write-off. They don't lose any more money than they would by clearing them at $99 and they dump the majority of their inventory quickly.
Here's the kicker: you're exposing kids to Blackberry products every day of their lives. Kids will start recognizing Blackberry products rather than assuming everything is an iPad.
This will also create a HUGE market for developers.
i thought the 1 billion was mostly BB7 devices, they already took a hefty loss on the PB 2 quarters ago
They already wrote down about $3/4 billion against Playbooks and BB7 devices in the last 2 quarters. Kind of have to assume that the $1 billion in inventory is a combination of the same devices...what else would they have in there?
There's been a fair bit of talk about a Touchpad-esque fire sale on the Playbooks. I don't think that this will happen. First, a little info.
We know that RIM has an inventory of at least $1 billion worth of hardware. A good percentage of this is Playbooks. RIM to writedown unsold BlackBerry, PlayBook inventory - SlashGear
The playbook (16GB) currently retails for ~$199. RIM is already taking a loss at this price.
The Playbook hardware is not getting any newer.
So it's pretty easy to see why a lot of people are crying "Firesale".
But the big difference between HP and RIM in this situation is that HP were getting out of the table market. I don't think RIM will do this.
So what to do with a surplus of ageing tablets if not sell them at bargain basement prices?
Donate them to schools!
Think of how this would work for RIM. They donate several hundred thousand playbooks to schools and take a tax write-off. They don't lose any more money than they would by clearing them at $99 and they dump the majority of their inventory quickly.
Here's the kicker: you're exposing kids to Blackberry products every day of their lives. Kids will start recognizing Blackberry products rather than assuming everything is an iPad.
This will also create a HUGE market for developers.
That is a great idea.. I was thinking that too.. Just get them into the hands of people, and i would think that would generate a bit of revenue
There is no one billion dollars in bb7 or playbook in inventory. Over 500 million of the inventory is raw materials and another 200 million plus is work in progress.
They already wrote down about $3/4 billion against Playbooks and BB7 devices in the last 2 quarters. Kind of have to assume that the $1 billion in inventory is a combination of the same devices...what else would they have in there?
Never assume anything as you make an out U and ME!
There is no one billion dollars in bb7 or playbook in inventory. Over 500 million of the inventory is raw materials and another 200 million plus is work in progress.
The ~billion is in unsold devices. It doesn't count the raw material. Stop making up numbers.
Personally, I don't think we're very likely to experience a "firesale" in the tablet market anytime soon, especially to the same magnitude HP did with the touchpad... That was an EXTREME situation that was handled very poorly...
Lot's of wishful thinking... If the next OS doesn't reboot RIM their days are seriously numbered. You can only sink so low before you liquidate and run.
My mother-in-law has a friend, who knows the guy, who ... and said the same thung.
1. This isn't meant to be a thread about that article, there's been lots of those already.
2. I choose one of hundreds of articles about the same RIM inventory problem. Choose your poison: playbook inventory - Google Search
Some of those articles mention soaring stockpiles of product ..where a while back it was mentioned (or was it presumed) manufacturing of (ie) the Pb had ceased. LOL
These threads are like watching a 'dog' chase its own tail, or licking its ....
So what to do with a surplus of ageing tablets if not sell them at bargain basement prices?
Donate them to schools!
Not likely and resist having them turned down as the schools rather buy ipads and face a monumental embarrassment. I dont care for ipads but honestly they are more choiceworthy for schools and their students.
Not likely and resist having them turned down as the schools rather buy ipads and face a monumental embarrassment. I dont care for ipads but honestly they are more choiceworthy for schools and their students.
Hmmm.. I don't think any schools would refuse donated playbooks. That would be just stupid on their part. Schools around here accept donated computers, etc. why not brand new fully functioning playbooks. Holding out for ipads only.. I don't think so...
Not likely and resist having them turned down as the schools rather buy ipads and face a monumental embarrassment. I dont care for ipads but honestly they are more choiceworthy for schools and their students.
Are you serious or just joking? Have you ever worked at a school? I guarantee most wouldn't turn down any charity. The technology in most schools is ancient and having a class set of tablets would be a wonderful teaching aide.
When (if???) widely deployed in business, is there a way to get the pb already updated with the proper OS or does each individual one have to be tediously updated using the wifi method we commoners have to go through. I can seriously see that as a deterrent.
+1 for the "mostly BB7 devices" statement.
[speculation]
Those BB7 devices will probably be used for "free upgrades" in large fleets to maintain subscriptions.
