[TechAlberta]

This article suggests RIM can survive these Playbook price cuts for some time, while they build market share and add developers. It costs a lot more to make an iPad than a Playbook:

Can RIM succeed with a Bargain Priced Blackberry Playbook?

[nliang]

Even the Playbook were sold at blowout prices but if you included all the purchase of accessories and apps, I can't see RIMM losing too much money for the 16GB model and definitely profitable for the 32GB and 64GB ones.

[Fat Bastage]

This article suggests RIM can survive these Playbook price cuts for some time, while they build market share and add developers. It costs a lot more to make an iPad than a Playbook:

Can RIM succeed with a Bargain Priced Blackberry Playbook?

1. RIM's tablet might be cheaper to produce because it is half the size of the IPad and much of the cost is in the touchscreen. Nevertheless, RIM's pricing also is based on the initial order of 1.5 million units. I doubt RIM will be placing such orders again and it is hard to imagine RIM will get volume component pricing comparative to apple buying 40 million units annually. Cash burn will be an important number on the earnings call this qtr.

2. I read very close and the article doesn't claim they can survive for"some time". In fact, RIM has reiterated that these prices are temporary. The lower cost is "wiggle room".

3. If you google some of Cantech's 2011 articles regarding the playbook as well as blackberry phones vs Apple, you see that you would be better served assuming the opposite happens.

[RWD]

Well for those of us who paid full price, knowing it costs 1/3 of the price paid to make is not comforting.

[FuzzyFish]

Well for those of us who paid full price, knowing it costs 1/3 of the price paid to make is not comforting.

But you can say the same thing with basically everything you buy these days. Also remember that manufacturing cost is just a single piece of the big pie for companies to determine pricing for a product, there are magnitude of other factors that companies pour money into to come up with the glowing rectangle that you and I are using right now.

[shootsscores]

Well for those of us who paid full price, knowing it costs 1/3 of the price paid to make is not comforting.

I have no problem with RIM's current strategy. It's bold and aggressive.

I paid retail in early May. No regrets whatsoever.

Caveat emptor.

[shootsscores]

This article suggests RIM can survive these Playbook price cuts for some time, while they build market share and add developers. It costs a lot more to make an iPad than a Playbook:

Can RIM succeed with a Bargain Priced Blackberry Playbook?

RIM's real advantage is QNX. No device that RIM builds hence forward will ever be obsolete. If computing moves to photon based technology, QNX is the OS that will run it.

[Playboook]

�Outside of research and development costs, the cost to produce a BlackBerry Playbook is $205. (...) But could RIM now have success recouping the approximately six dollars it loses selling 16GB Playbooks?�

And the retailers are doing it for free, I suppose?

[anon(757282)]

Keep in mind that the 16GB model is the low end. I doubt the other 2 models cost anywhere near $100 more for each increment of 16GB memory. These models are also very popular now, so as more of there larger models are sold, the net income increases. Even if RIM makes far less on each unit, growing the user base like this introduces a whole new population to the app world, accessories, and other revenue sources.

And after PB2 is announced at CES, demand for a lower cost QNX device will spike.

Posted from my CrackBerry at wapforums.crackberry.com

[shootsscores]

Keep in mind that the 16GB model is the low end. I doubt the other 2 models cost anywhere near $100 more for each increment of 16GB memory. These models are also very popular now, so as more of there larger models are sold, the net income increases. Even if RIM makes far less on each unit, growing the user base like this introduces a whole new population to the app world, accessories, and other revenue sources.

And after PB2 is announced at CES, demand for a lower cost QNX device will spike.

Posted from my CrackBerry at wapforums.crackberry.com

I'm interested to read what you think low cost PB2 would feature and why you think an additional model would be released in the first place.

[Morten]

RIM's real advantage is QNX. No device that RIM builds hence forward will ever be obsolete. If computing moves to photon based technology, QNX is the OS that will run it.

-and a PC will never ever need more than 637Kb of memory,
(bill gates)

..

[shootsscores]

-and a PC will never ever need more than 637Kb of memory,
(bill gates)

..

Thanks for the non sequitor.

[howarmat]

the 205 doesnt include research and development which we know RIM spent a TON on. And i think the 205 is wrong too since we have seen number around 270-280 for the 16 GB model. I think the kindle fire is $205 or close to it so the PB would be more.

The good thing is the R&D can be viewed as feature dev for the BBX phones too so they are ahead of the game there.

[Spinal]

im a little surprised the kindle fire costs so much, as it doesn't have cameras or bluetooth, and i dont even think it has HDMI out. im with Brianflys on this the 32/64 gig model are fairly popular at my work as a lot of customers realize that only 100$ more gets you double the storage, and im sure the accessories like the cases directly from RIM cost pennies on the dollar to make.

[DannyAves]

im a little surprised the kindle fire costs so much, as it doesn't have cameras or bluetooth, and i dont even think it has HDMI out.

I read that it does have the Bluetooth hardware but it is just not supported by the software.

[QuantumQnx]

I have no problem with RIM's current strategy. It's bold and aggressive.

I paid retail in early May. No regrets whatsoever.

Caveat emptor.

Thank-you! I completey agree - I paid full retail as well with no regrets. You always pay more to get it first and I have had many months of great use.

[world traveler and former ceo]

Thank-you! I completey agree - I paid full retail as well with no regrets. You always pay more to get it first and I have had many months of great use.

I have no regrets also .. bought the day they started selling them ... use my playbook all over the world ... love it .. and can't wait for the massive 2.0 software update which will make this Playbook "laptop" replacement like ....

Posted from my CrackBerry at wapforums.crackberry.com

[FF22]

I read that it does have the Bluetooth hardware but it is just not supported by the software.

re: fire and bt. Well, the pb has bt hardware but it is not supported by the software other than Bridge. No a2dp, no file transfer protocols.

[Abrante]

Well for those of us who paid full price, knowing it costs 1/3 of the price paid to make is not comforting.

if that is your "reasoning" you wouldn't shop ever again. You might also think that Black Friday sales are a generous treat from retailers selling to us without making profit? even at rock bottom prices the retailer manages to make enough to cover their expenses and make a profit. Try returning a gold chain to a jeweler immediately after you pay for it, you'll see how fast it loses 3/4 " its value ". Furthermore, do you think Nike pays anywhere near $150 to produce a pair of Air Jordans? try under $10/pair...

[FF22]

We've been through this before. The SEVERE drop is price is not normal depreciation. It is based on a failure of this tablet to sell as anticipated and some of that price drop is due to Rim's inept marketing and failure to follow through on the improvements that they INTIMATED would be released in 60 days, Summer, Devcon, and first star to the right and straight on till morning.

[Tre Lawrence]

if that is your "reasoning" you wouldn't shop ever again. You might also think that Black Friday sales are a generous treat from retailers selling to us without making profit? even at rock bottom prices the retailer manages to make enough to cover their expenses and make a profit. Try returning a gold chain to a jeweler immediately after you pay for it, you'll see how fast it loses 3/4 " its value ". Furthermore, do you think Nike pays anywhere near $150 to produce a pair of Air Jordans? try under $10/pair...

Good logic, but for the sake of argument, how quickly does the competition lose value? That could be a better gauge. When looked at from that perspective, you may find out that that poster may have a legitimate gripe.

I am no business person, nor have I run a major corporate entity, but I do suspect introductory pricing is extremely important.

Turkey-induced food for thought...

[Spinal]

re: fire and bt. Well, the pb has bt hardware but it is not supported by the software other than Bridge. No a2dp, no file transfer protocols.

while this is true it at least has some functionality, like bridge and internet tethering, hopefully RIM is not going to be stupid and enable a2dp/file transfer via bluetooth. however don't forget bt keyboards and mice are supported, so its not a total loss.

unlike the fire which has the hardware but not the software which is kind of pointless really...i wonder if it would've cost them the same to either have or not have it so they just opted to keep it.

[drumzalicious]

one thing we have to keep in mind is that RIM builds a lot of its own stuff so some of their costs aren't as high as other competitors. These people at RIM are already staffed to build devices and OSs. Amazon on the other hand had to go and hire folks to do this

[howarmat]

one thing we have to keep in mind is that RIM builds a lot of its own stuff so some of their costs aren't as high as other competitors. These people at RIM are already staffed to build devices and OSs. Amazon on the other hand had to go and hire folks to do this

RIM didnt build the PB, Quanta did. They also build many many other products including the kindle fire.

[slalom]

Well for those of us who paid full price, knowing it costs 1/3 of the price paid to make is not comforting.

Manufacturing cost is only one consideration in price