RIM strangely charging same $299 for 16GB, 32GB & 64GB PlayBook models

Posted:
in iPad edited January 2014
As Research in Motion is rumored to be planning for a major shakeup in its board of directors, the company has begun an odd sale in which all PlayBook models, regardless of capacity, are priced at $299.



The fire sale of RIM's struggling touchscreen tablet was first noted by Pocket-lint. The odd promotion features all PlayBook models available for the same price, meaning the high-end 64-gigabyte model can be had for the same price as the 16GB offering.



That means the savings are significantly bigger for the 64GB model, which usually sells for $699 but has been discounted by $400. The 32GB model is usually $599, a $300 savings, while the 16GB PlayBook has a regular price of $499, which leaves its savings at $200.



The sale is advertised to end on Wednesday, and is the latest in a number of promotions aimed at helping to move the product from store shelves. RIM revealed last month that unsold PlayBook inventory has cost the company $485 million.



The PlayBook sold just a half-million units in the first quarter of availability, and failed to become a serious threat to Apple's market-leading iPad lineup. Since then, sales have only dropped, and RIM sold just 150,000 PlayBooks in the third quarter of last year.



As the PlayBook fire sale is under way, The Vancouver Sun reported on Tuesday that RIM is strongly considering a "corporate shakeup" that could remove co-founders Mike Lazardis and Jim Balsillie as the company's chairmen. Barbara Stymiest, a director on RIM's board and former chief operating officer at Royal Bank of Canada, is said to be the leading candidate for the new chair.







"Sources say the evaluation process now underway at the company could result in a number of different options and that a final decision has not yet been made," the report said.



Last month it was said that RIM turned down multiple takeover offers from Amazon and other potential buyers. But the Canadian smartphone maker instead hopes to fix its own problems internally, even as one estimate has suggested RIM is worth less than Apple's App Store alone.



RIM's stock plummeted after the company announced last month that BlackBerry shipments saw a slight decline year over year. The company also delayed BlackBerry 10, its next-generation mobile operating system, until the second half of 2012, an arrival that some analysts believe will be too little, too late.
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Comments

  • solipsismxsolipsismx Posts: 19,566member
    How fraking stupid. I no longer feel sorry for you RiM, now I want you to die out like the pointless pandas should.
  • landcruiserlandcruiser Posts: 189member
    It's just a clear the inventory strategy. They will sell them all off just as fast as HP's fire sale. Starting with the 644GB, then the 32GB, then the 16GB (for the slow decision makers). Get 'em while you can. And don't expect any support down the road from RIM.
  • quinneyquinney Posts: 2,456member
    Quote:
    Originally Posted by SolipsismX View Post


    How fraking stupid. I no longer feel sorry for you RiM, now I want you to die out like the pointless pandas should.



    All pandas are not pointless

  • jkichlinejkichline Posts: 1,099member
    Still too much.
  • winstein2010winstein2010 Posts: 401member
    Quote:
    Originally Posted by Landcruiser View Post


    It's just a clear the inventory strategy. They will sell them all off just as fast as HP's fire sale. Starting with the 644GB, then the 32GB, then the 16GB (for the slow decision makers). Get 'em while you can. And don't expect any support down the road from RIM.



    Since they are all the same price, everyone is going to try to get the 64GB version, when that was sold out, then everyone will get the 32GB version. Then nobody wants the 16GB version.
  • jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by Landcruiser View Post


    It's just a clear the inventory strategy. They will sell them all off just as fast as HP's fire sale. Starting with the 644GB, then the 32GB, then the 16GB (for the slow decision makers). Get 'em while you can. And don't expect any support down the road from RIM.



    It's a dumb strategy.



    HP's dropping the price to $99 was foolish, too. People were buying as many as they could so they could sell them on eBay for more than twice that (I sold 3 on eBay for over $200 each). If HP had priced them at $199, they would have sold them all, but would have ended up with tens of millions of dollars extra in their pockets.



    Similarly, RIM's pricing is ridiculous. The 64 GB is clearly more valuable than the 16. Some people are happy with the 16, so would have bought that one first if there were a savings. Others would pay significantly more for 64 GB. If they felt that the market would bear an average of $299, then logic dictates that they should have priced the 64 at $349 and the 16 at $249 (or whatever). Doing that, they could still convince customers that the product was valuable and had something to offer. Instead, they just told the world that the product is crap and there's really no advantage to anything that it offers.
  • stelligentstelligent Posts: 2,680member
    Quote:
    Originally Posted by jragosta View Post


    It's a dumb strategy.



    HP's dropping the price to $99 was foolish, too. People were buying as many as they could so they could sell them on eBay for more than twice that (I sold 3 on eBay for over $200 each). If HP had priced them at $199, they would have sold them all, but would have ended up with tens of millions of dollars extra in their pockets.



    Similarly, RIM's pricing is ridiculous. The 64 GB is clearly more valuable than the 16. Some people are happy with the 16, so would have bought that one first if there were a savings. Others would pay significantly more for 64 GB. If they felt that the market would bear an average of $299, then logic dictates that they should have priced the 64 at $349 and the 16 at $249 (or whatever). Doing that, they could still convince customers that the product was valuable and had something to offer. Instead, they just told the world that the product is crap and there's really no advantage to anything that it offers.



    HP deployed the $99 scheme when the company was in turmoil, the same state RIM finds itself in right now. Still, it's hard to believe what RIM is doing - $299 across the board? In HP's case, since they were leaning toward abandoning WebOS, I don't think they cared about the extra $100M. It was a matter of cutting off the arms and legs to make it easier to let go of the whole body.
  • tallest skiltallest skil Posts: 40,863member
    Quote:
    Originally Posted by quinney View Post


    All pandas are not pointless



    Whoa, that's some POWERFUL ringworm.



    Poor RIM. I no longer want them to have any sort of honorable death. Shut them down and give the money back to the shareholders.
  • island hermitisland hermit Posts: 6,217member
    Quote:
    Originally Posted by jkichline View Post


    Still too much.



    I know someone who bought one at $199 for their son. An iPad was on the shopping list but the cost for a child's gift was prohibitive.



    It was mentioned, though, that if a cheaper iPad comes out this year then there will be an upgrade next Xmas, plus the parent wants an iPad 3 at standard pricing.
  • chadmaticchadmatic Posts: 285member
  • d-ranged-range Posts: 396member
    Quote:
    Originally Posted by Tallest Skil View Post


    Poor RIM. I no longer want them to have any sort of honorable death. Shut them down and give the money back to the shareholders.



    I see what you did there
  • They've officially destroyed the value and image of their company. If they choose as new CEO the former chief from RBC, I think their legacy is at an end.
  • prof. peabodyprof. peabody Posts: 2,860member
    Quote:
    Originally Posted by jragosta View Post


    It's a dumb strategy. ...



    I think you are thinking of a smaller business. The inventory of Playbooks would at this point already be written off. They don't need to make a dime off of this. It's just a fire sale to get rid of the stupid things.



    It tells us that at a minimum, they are getting out of the tablet business for the short term. it will be interesting to see if they jump out of the hardware business altogether, or if they still try to keep selling phones in the hopes that they can get back into tablets later as well.



    In other words it's a good sign for anyone investing in the company.



    A better sign however, would be a clear indication that they are leaving hardware behind forever. it's really their only sensible move at this point.
  • prof. peabodyprof. peabody Posts: 2,860member
    Quote:
    Originally Posted by TheElectricChairRepairman View Post


    They've officially destroyed the value and image of their company. If they choose as new CEO the former chief from RBC, I think their legacy is at an end.



    I'm not sure why it would be. RBC is flying high at this point and one of the most respected corporate entities in Canada.



    Hiring the ex-leader of such a solid, respected time-tested entity as RBC for the new chair would send exactly the right signal one would think.
  • jmgregory1jmgregory1 Posts: 413member
    RIM should join up with Sears Holdings. I'd love to hear the co-ceo's explanation for offering this strategy. If it weren't for the moronic wall streeters who stay invested in the company (and the corporate IT departments not wanting to change), RIM would be on the chopping blocks already. Investors are going to give them 2012 to bring better and successful products to market - which they won't of course. Then what? I think as much as RIM is floundering (as is Sears), the investment community should be flogged over their poor business practices, supporting these bozos at RIM and Sears.
  • desarcdesarc Posts: 642member
    RIM should hire Mark Hurd or Léo Apotheker as their new CEO
  • nofear1aznofear1az Posts: 209member
    Quote:
    Originally Posted by desarc View Post


    RIM should hire Mark Hurd or Léo Apotheker as their new CEO



    orrrrrrr both as CO-CEO's..... or better yet Carol Bartz and Leo Apotheker as CO-CEO's now that's a great pair.
  • appleciderapplecider Posts: 73member
    Quote:
    Originally Posted by Prof. Peabody View Post


    A better sign however, would be a clear indication that they are leaving hardware behind forever. it's really their only sensible move at this point.



    And leave them selling what?



    Who is going to use their software if they don't, let alone allow their platform to expand?



    It would have to be a phone manufacturer, and that would mean not nokia, and would have an android maker change platform, who would it be?



    Show me the business plan.
  • nasseraenasserae Posts: 3,145member
    So stupid!



    Quote:
    Originally Posted by SolipsismX View Post


    How fraking stupid. I no longer feel sorry for you RiM, now I want you to die out like the pointless pandas should.



    You know.. they caught a Panda eating meat. They've been deceiving us all along



  • charlitunacharlituna Posts: 7,083member
    Quote:
    Originally Posted by applecider View Post


    And leave them selling what?



    Haven't you heard. Apple is buying RIM for their patents. But only on the condition that they first get rid of all the Playbooks that are sitting around in warehouses cause Apple isn't going to pay the rent or the disposal fees
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