rim-should-be-bold-and-give-away-the-blackberry-playbook-for-free
- Found this link from UNTETHER.tv. The author used to work for RIM from 2009-2011:
RIM should �Be Bold� and give away the BlackBerry PlayBook for free | UNTETHER.tv
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RIM should �Be Bold� and give away the BlackBerry PlayBook for free
BY DOUGLAS SOLTYSJANUARY 6, 2012 2 COMMENTS AND 4 REACTIONS
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As rumours of RIM�s Co-CEOS being replaced as Board of Directors Co-Chairmen heat up, the price of the BlackBerry PlayBook tablet has cooled. Until February 4th, consumers can purchase all-three different PlayBook models for $299, which would save them $300 on the 32GB model and $400 on the 64GB model.
RIM�s apparent strategy is to sell through as much PlayBook inventory as possible in advance of their PlayBook OS 2.0 update and lay the groundwork for BlackBerry 10 (RIM has previously said that apps built for the BlackBerry PlayBook tablet will also run on BlackBerry 10). But half-measures like modest price cuts won�t help RIM in 2012. They have to follow their own advice and be bold.
Crunching the numbers
Let�s run through some numbers quickly to set context. The below numbers reflect the number of BlackBerry PlayBook tablets shipped in 2011*:
- 150,000 units in fiscal Q3 (PDF)
- 200,000 units in fiscal Q2 (PDF)
- 500,000 units in fiscal Q1 (PDF)
*Remember that shipped does not mean sold, and RIM�s fiscal year is offset from the calendar year.
That�s less than a million BlackBerry PlayBook tablets shipped in 2011, with diminishing returns each quarter. These results seem more dire when compared to Apple�s most recent financial statement, which shows they sold 11.2 million iPads in Q4. Apple�s strong 2011 holiday sales will likely lead them to surpass that number this quarter.
But comparing the PlayBook, or any other tablet, to the iPad in this way is unfair. Amazon has been the only company able to make a slight dent in Apple�s market share, by selling a tablet less than half the price of the iPad. More on this in a minute.
A better company to look to is HP, which had an interesting tablet experience in 2011. After putting a bullet in the head of WebOS, HP placed the poorly performing TouchPad on fire sale, dropping the price of the month-old tablet to $100 (and $150 for the 32 GB model). What happened? HP sold out, quickly. The company never released exact sales numbers, but the best estimates based upon HP�s initial order from its Taiwanese contract manufacturer, Compal, place the total number of TouchPads sold somewhere between 500,000 and one million units.
So, one million people lined up to purchase a tablet that had been canned after one month of availability, running an OS no longer supported by its manufacturer. At a bargain bin price, HP was able to sell as many or more units of a dead tablet than RIM sold BlackBerry PlayBooks over the course of a year.
Just because you build it, doesn�t mean they�ll come
But the BlackBerry PlayBook is not a dead tablet. Ignoring my obvious bias (full disclosure: I worked at RIM from 2009-2011. It was fun.), bloggers and �real people� like the BlackBerry PlayBook. They�ll like it even more when the PlayBook OS 2.0 software update brings native email, contacts, and calendar functionality in February. And RIM is not abandoning their QNX-based OS; they�re betting the company on BlackBerry 10.
Let�s go back to Apple and Amazon for a minute. Their success has shown that in the mobile space, ecosystems win. Apple paired the robust iOS development community and their endless number of apps with its dominant walled garden of multimedia services (music, movies, television, e-books, etc.) to transform what would otherwise be a blank slate into the multifunctional iPad. Amazon, which features its own potent multimedia and retail services, completed the ecosystem equation by leveraging the Android development community and (some) of their 400,000 Android apps. Even then, Amazon is selling the Kindle Fire below cost to gain traction, knowing they can make the money back on services revenue.
Obviously, RIM doesn�t have a combined apps and multimedia services offering to compete with Apple or Amazon for customers� attention. No company does, not even Google (yet, although it�s certainly trying). And it will be difficult for RIM to get developers or multimedia content providers to sign on without having an installed base big enough to justify the investment. So how do they break through the ecosystem paradox? By incentivizing its growth.
Be bold!
With the HP TouchPad, consumers were incentivized to buy a dead product with no future, because $100 is a low risk investment. RIM has a product and an OS platform with the potential for a bright future, but its current price cuts are not going to sell enough units to get them there. They need to go all the way. RIM should give away a 16GB PlayBook with every BlackBerry smartphone purchase. Or sell the 32GB and 64GB models for $100 and $150, respectively, but turn that payment into an automatic credit for a BlackBerry 7 (or BlackBerry 10) smartphone. Or do both.
Doing so could quickly double, or triple, the amount of people willing to advocate their new 7-inch tablet to friends and family. Rapid growth in the PlayBook installed base could force developers to rethink merely porting their Android apps in favor of getting the jump on native app development for BlackBerry 10. It could also make it easier to get Hulu, Netflix, and every other content provider to commit support. More apps and more popular services means more happy customers. It means an ecosystem.
At the very least, it would give the company something close to positive momentum. RIM should spare nothing in making consumers an offer they can�t refuse on hardware to ensure the future viability of the BlackBerry 10 platform. Come on, RIM, it�s 2012. Be bold.jordandrews90 and powellcrazy like this.01-06-12 03:06 PMLike 2 - Y'all are looking a gift horse in the mouth. The BlackBerry PlayBook is rock solid and with each month the applications are slowly coming on-stream. With the much anticipated February release of BBPB OS 2.0 and hopefully the Native Software Development Kit (NDK/SDK) this much maligned tablet can be the transitional product it was meant to be back in April of 2011.01-06-12 07:42 PMLike 4
- I can't get too excited about this idea from a business perspective. You get credit for thinking big, but not for math.
Look at how much fun Barnes & Noble is having with their lack of profit on their "readlet" sales (if you don't know, they are hurting).
Apple's tablet picks up profit for the carrier from monthly connection fees. Amazon expects a big cash stream from Kindle users. HP - not a path to be followed.
Where's the math to make this work for RIM? I don't think the returns for RIM are big enough to pay off the gift.
Besides, free opens the door to anyone - even those who are asleep with no real coimmitment. Even Gillette doesn't give away their razors.01-06-12 07:51 PMLike 0 - Found this link from UNTETHER.tv. The author used to work for RIM from 2009-2011:
RIM should �Be Bold� and give away the BlackBerry PlayBook for free | UNTETHER.tv
__________________________________________________ ______________________
RIM should �Be Bold� and give away the BlackBerry PlayBook for free
BY DOUGLAS SOLTYSJANUARY 6, 2012 2 COMMENTS AND 4 REACTIONS
Pearl9100 likes this.01-06-12 08:02 PMLike 1 - In theory, giving away any product could popularize it, creating future sales. In practice, it just doesn't work. RIM has already lost $500 million or so on the firesale, not counting the sunk R&D. I don't think it can afford to lose much more on the Playbook. Besides, would even popularizing the Playbook create a market in which it could then be sold for more than cost? Unlikely, given the $199 Fire, the $249 Nook and upcoming Google or Apple 7" tablets...glassofpinot likes this.01-06-12 08:10 PMLike 1
- Don't you just love the entitlement mentality of these 1 percenters that believe that a device that a company invested capital time and energy should not be able to make a profit. Getting something that you didn't earn the money to buy for free is totally ludicrous and will not occupy another moment of my time.01-06-12 08:15 PMLike 5
- Free means undervalued, unappreciated and entitlement begins - people scream now when an app cost more than 99 cents for Pete's sake.01-06-12 08:21 PMLike 4
- In theory, giving away any product could popularize it, creating future sales. In practice, it just doesn't work. RIM has already lost $500 million or so on the firesale, not counting the sunk R&D. I don't think it can afford to lose much more on the Playbook. Besides, would even popularizing the Playbook create a market in which it could then be sold for more than cost? Unlikely, given the $199 Fire, the $249 Nook and upcoming Google or Apple 7" tablets...01-06-12 10:28 PMLike 0
- Don't you just love the entitlement mentality of these 1 percenters that believe that a device that a company invested capital time and energy should not be able to make a profit. Getting something that you didn't earn the money to buy for free is totally ludicrous and will not occupy another moment of my time.01-06-12 10:35 PMLike 0
- Vodafone here had a program to bundle a free Playbook with the 9780 to deplete the Bold stock. Seemed to work ok.01-06-12 10:50 PMLike 0
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What would maybe make sense is giving a few pb to it departments, hospitals, law firms, and etc in order to further crack the enterprise market. That is one of the few scenarios that would make business sense and because these companies would try the product and potentially buy pb's by the truck loads if they like them.
This is how it works in the IT world.Last edited by Pearl9100; 01-07-12 at 12:37 AM.
01-07-12 12:33 AMLike 0 - we are not asking the right question here. the correct question is this: What do Apple and Android do well that Blackberry does not do well? The answer is marketing. Blackberry has a horrible marketing team. Where is the ad that shows President Obama with his Blackberry and asks the consumer this question: Blackberry is the choice of the President, why isnt it yours? I would run that ad until he is no longer President and carpetbomb the top 75 us markets with that ad.malep likes this.01-07-12 06:33 AMLike 1
- Don't you just love the entitlement mentality of these 1 percenters that believe that a device that a company invested capital time and energy should not be able to make a profit. Getting something that you didn't earn the money to buy for free is totally ludicrous and will not occupy another moment of my time.scott.slater likes this.01-07-12 06:48 AMLike 1
- BrantaRetired Network Mod
A "foreign" (Canadian) manufacturer supplying below cost into US markets would risk action by a US competitor to file a complaint with FTC, and the imposition of anti-dumping penalties. That would probably be fatal for a struggling product, and potentially for the manufacturer.VerryBestr likes this.01-07-12 09:17 AMLike 1 - Maybe some sort of promotion like for every blackberry bb7 phone bought you get 150 gift card (in box) redeemable only by purchaser with receipt towards shop blackberry PB purchase. That way you make 2 years worth of bb phone services ($$) and put more playbooks in peoples hand who want like BB!. Again not giving away just ensuring people will have both devices in there hand? Only for New BB customers who sign 2 year contracts.01-07-12 09:50 AMLike 0
- I dunno, that business model worked for this bank:
Saturday Night Live: First CityWide Change Bank 2 - Bing Videos
Have to post a link - there is no YouTube link I can embed.01-07-12 10:11 AMLike 0 - we are not asking the right question here. the correct question is this: What do Apple and Android do well that Blackberry does not do well? The answer is marketing. Blackberry has a horrible marketing team. Where is the ad that shows President Obama with his Blackberry and asks the consumer this question: Blackberry is the choice of the President, why isnt it yours? I would run that ad until he is no longer President and carpetbomb the top 75 us markets with that ad.01-07-12 12:44 PMLike 0
- Giving it away for free would only re-enforce the notion that free is all that it is worth.
The so called "fire sales" did enough of that. - Devaluation.01-07-12 01:08 PMLike 0 - i am sure that pb inventory is pretty much depleted by now without giving it away for free. pb screams quality. shame rim screwed up initial launch. rim really needed to get some version of contacts and email client plus few notable developers on the wagon and more reasonable pricing. PB would be in different place by now. Still i think upcoming numbers of sold pb will be respectable.01-07-12 01:20 PMLike 0
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Life and business are not video games. Marketing is more than just a giveaway.
RIM needs great marketing - which would be a great combination with its great Playbook product.
You really can't market junk to be a great success (pet rocks excepted), but you can...
--hide a great product behind poor marketing
--win big with great marketing of a great product
RIM - pls get it together on the latter.01-07-12 09:57 PMLike 0 - Doing so could quickly double, or triple, the amount of people willing to advocate their new 7-inch tablet to friends and family. Rapid growth in the PlayBook installed base could force developers to rethink merely porting their Android apps in favor of getting the jump on native app development for BlackBerry 10.
At the very least, it would give the company something close to positive momentum.
These suggestions are unnecessary.glassofpinot likes this.01-07-12 10:32 PMLike 1
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