06-07-12 05:36 AM
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  1. Ben1232's Avatar
    That's a good idea OP if the inventory is that many PlayBooks.
    06-05-12 03:43 PM
  2. VerryBestr's Avatar
    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.
    Anyone who says there is $1billion in unsold completed BB7 phones is just making up numbers. Moreover, it appears highly unlikely to me.

    No one outside RIM and their accountants really know the numbers for the latest quarter.

    Here are the numbers for the previous quarter, as of Mar 3. The consolidated balance sheet lists $1.027 billion in inventories. Note number 6 details the inventory calculation as follows:
    $770 million -- Raw materials
    $420 million -- Work in process
    $167 million -- Finished goods
    -$431 million -- Provision for "excess and obsolete inventories"
    $1.027 billion Total

    The $431 million provision for "excess and obsolete inventories" may seem large. It probably includes much or most of the $267 million provision announced last quarter for BB7 phones (although RIM doesn't explain how its special provisions show up in its financials). But the total provision or $431 million was obviously much larger than the special $267 million write-off for BB7 phones.

    In every quarter for the last two years RIM has made this provision for "excess and obsolete inventories" for hundreds of millions of $. According to my recollection (I'm not going through old financial reports just for this note), this write-off has ranged from around $250 million to over $400 million every quarter. I believe the total was closer to $1.5 billion per year than $1 billion. The total numbers for these provisions are larger than the announced special write-offs for BB7 and the PlayBook. Perhaps these large write-offs are just a cost of doing business in the fast-moving world of mobile phones. But it does seem to me that better inventory management could save RIM a bundle.

    In addition to the inventory numbers given above, the financial report lists "vendor inventory liabilities" of $279 million, and "carrier liabilities" of $524 million. I don't know exactly what these numbers mean, but they probably include some projected costs of buying back or otherwise indemnifying vendors and carriers for unsold or discounted phones.

    RIM has pre-announced a "probable" operating loss. This could mean poor sales forced yet another special write-off. Or it could mean that RIM has been dropping phone prices below profitable levels in order to move inventory and retain as much market share as possible. We'll know more when RIM announces results.

    I suspect the next inventory numbers will already reflect important purchases of "raw materiels" for BB10 phones, especially the screens and perhaps the processors.
    06-05-12 04:09 PM
  3. pythons's Avatar
    Would $99.00 for a Blackberry 9900 / 9930 be considered fire sale pricing??
    ...I see Bestbuy is selling them for that now with a 2yr contract.
    06-05-12 06:53 PM
  4. cbvinh's Avatar
    In addition to the inventory numbers given above, the financial report lists "vendor inventory liabilities" of $279 million, and "carrier liabilities" of $524 million. I don't know exactly what these numbers mean, but they probably include some projected costs of buying back or otherwise indemnifying vendors and carriers for unsold or discounted phones.
    Too bad RIM can't get a sweet deal like Apple did with Sprint - guaranteed purchase of $15 billions worth of iPhones over four years.
    06-05-12 07:08 PM
  5. soren203's Avatar
    That is actually a very good idea op!
    06-05-12 09:36 PM
  6. blackberrymamba's Avatar
    Maybe for special needs kids I think it would be a cool idea. But for normal kids the playbook really doesn't promote learning. It is more of a business / entertainment tablet and will serve more as a distraction in a classroom setting. If RIM needs recognition of their playbook they should make commercials. Apple simply dominates the market. I like the playbook and prefer it over the ipad but donating playbooks to random schools would be a nice gesture, but it's not going to help them gain marketshare. Giving away your product for free is never a good business model.

    What rim should do is make all the popular apps available on the playbook like netflix, kindle, etc. And they should take advantage of their superior hardware and make it accessible, such as usb otg. But for some reason they can't get it done.
    06-06-12 12:13 AM
  7. kill_9's Avatar
    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.
    In conjunction with BlackBerry Mobile Fusion each school or school board, as appropriate, could remotely manage the BlackBerry PlayBooks. The students could purchase the tablet from the school and be responsible for the tablet thereby significantly reducing the "I lost my tablet, teacher" when in reality Jack and Jill had sold them on e-Bay. These tablets would be most appropriate for high school students as a trial project. And they could be used for more than reading textbooks. The WiFi-only tablet would not need a data plan and WiFi APs are fairly ubiquitous these days in schools and homes, plus a student could always opt to bridge or tether to their smartphone be it BlackBerry or another vendor.
    06-06-12 12:19 AM
  8. blackberrymamba's Avatar
    The kids will be checking their Facebook accounts in the classroom. The playbooks 7 inch screen wouldn't exactly make reading textbooks enjoyable. I just don't see the purpose of a playbook in a classroom setting. Without a keyboard the playbook isn't very productive. Desktop computers with windows 7 in a classroom makes more sense. The ipad makes more sense as well for textbook reading if schools wanted to go paperless.
    06-06-12 12:35 AM
  9. kill_9's Avatar
    Maybe for special needs kids I think it would be a cool idea. But for normal kids the playbook really doesn't promote learning. It is more of a business / entertainment tablet and will serve more as a distraction in a classroom setting. If RIM needs recognition of their playbook they should make commercials. Apple simply dominates the market. I like the playbook and prefer it over the ipad but donating playbooks to random schools would be a nice gesture, but it's not going to help them gain marketshare. Giving away your product for free is never a good business model.

    What rim should do is make all the popular apps available on the playbook like netflix, kindle, etc. And they should take advantage of their superior hardware and make it accessible, such as usb otg. But for some reason they can't get it done.
    Research In Motion could sell the BlackBerry PlayBook to school districts under a pricing model that allows the schools to reduce their textbook replacement budget. The 32GB BlackBerry PlayBook is the ideal because its cost to the school and the student could be set at CAD/USD199.99 plus the annual BlackBerry Mobile Fusion user fee of CAD/USD47.99 (discounted from 99.00); the student pays for the tablet and the school pays for the annual user fee.

    Possibly, a BlackBerry Business Cloud Service type plan for the education sector, rebranded as BlackBerry Cloud Service for Education in partnership with Microsoft Office 365 Cloud Service specifically optimized for the BlackBerry PlayBook, eliminating the need for BlackBerry Mobile Fusion, and offered for CAD/USD49.99 per calendar year.
    06-06-12 12:39 AM
  10. raino's Avatar
    the student pays for the tablet and the school pays for the annual user fee.
    I don't see that happening in the US. Not in the public school system at least, where most students are. Plus, if a teenager is being forced to buy a tablet, aside from the 199 price (and that's assuming Apple doesn't jump in with a bulk volume agreement with school districts, like it has done with many universities), I don't see why a student would want to buy the "business" device PB over the iPad.
    06-06-12 09:53 AM
  11. brucep1's Avatar
    I think the OP's intention was to only donate them to schools, not try to make any profit. Get a nice tax deduction, support a good cause. Win Win.

    There wouldn't be students purchasing anything, no schools paying fees, etc.
    06-06-12 10:35 AM
  12. raino's Avatar
    ^I know. I was just responding to the previous poster's hypothetical. Given a choice, I really doubt too many students would choose a PB. In the UK, maybe. In the US, no.
    06-06-12 12:09 PM
  13. FSeverino's Avatar
    how can they have a fire sale for $100 and then release the 4G model and sell it at anything over $200?

    if RIM does have a fire sale then that will mean nobody in their right mind would buy the new 4G model for $100 more, never mind if they try to price it at the original PB price on release.
    06-06-12 01:49 PM
  14. brucep1's Avatar
    if RIM does have a fire sale then that will mean nobody in their right mind would buy the new 4G model for $100 more, never mind if they try to price it at the original PB price on release.
    The 4G PlayBook will not be at the $499 price points...Doesn't make any logical sense.
    06-06-12 02:02 PM
  15. mikeo007's Avatar
    The 4G PlayBook will not be at the $499 price points...Doesn't make any logical sense.
    Is the 4G Playbook still even on the product release schedule?
    06-06-12 06:59 PM
  16. FSeverino's Avatar
    The 4G PlayBook will not be at the $499 price points...Doesn't make any logical sense.
    logical sense + RIM = *** computational error ***
    brucep1 likes this.
    06-06-12 07:00 PM
  17. FSeverino's Avatar
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    06-07-12 12:48 AM
  18. foomanchuyou's Avatar
    bertonstorm is spam

    RIM have sold a good number of PB (1/2 million?) at the lower price do they need to reduce further anyway?
    06-07-12 05:36 AM
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