It's not such a dumb strategy. If someone decides they want one, knowing they might be able to get a 64, then they might just as likely settle for a 32. It's a bit like bait and switch, except they are being up front about it.
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.
It's still a dumb move. If they think that people will pay $299 for the 16 GB version, then they're leaving money on the table with the higher storage versions. So they're not collecting as much money as they should. It doesn't matter if they're already written off, they're bringing in less revenue than they would be able to with a tiered pricing strategy. And in their current situation, they can't afford to leave money on the table.
Quote:
Originally Posted by stelligent
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.
Sorry, but $100 M is a ton of money by any standards. And it also jeopardized their chances of being able to sell the division. If they had been selling Touchpads at $200-250, it would have been of far more interest to a potential buyer than telling the world that they were so bad that they had to be dumped at $99.
Maybe there are some people in the world that have a form of self-control where they only buy what they need and think that 32 is good enough, so they don't need the 64 or the larger coffee.
It's still a dumb move. If they think that people will pay $299 for the 16 GB version, then they're leaving money on the table with the higher storage versions. So they're not collecting as much money as they should. It doesn't matter if they're already written off, they're bringing in less revenue than they would be able to with a tiered pricing strategy. And in their current situation, they can't afford to leave money on the table.
Sorry, but $100 M is a ton of money by any standards. And it also jeopardized their chances of being able to sell the division. If they had been selling Touchpads at $200-250, it would have been of far more interest to a potential buyer than telling the world that they were so bad that they had to be dumped at $99.
$100M is nothing by HP standards. Any interested buyers of WebOS technology would not be judging it based on TouchPad - good or bad, but would make the decision based on what they believe they can make out of WebOS.
But no point debating that. Consider this, however: there was obviously an internal fight regarding not just WebOS devices but also PCs. Apothaker was determined to go the route of software services. Others, such as Rubinstein, might have said, "But what about the million TouchPads we have already made?" To make his point, Apothaker might have said, "Just dump them asap and write it off." I'm guessing something akin to that took place. These are not idiots at HP. They simply made a hasty decision.
[...] 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. [...]
And how many years did it take RIM's board to figure out that there was a problem?
RIM's board did nothing for years. HP's board did many stupid things for years.
You can buy the 16GB for $200 in BestBuy and some other stores, and it looks like 16GB sells well for $200. I think that this "stupid" sale was designed to sell the 64GB for $300. It got much of publicity, all websites scream about it, and there will be enough people to buy it for $300. I would bought it myself, but I already have 16GB, and it's worth $200 for sure. I would use the 64GB to store some movies on it, for us and for our kids.
Geez, a lump of coal in the stocking is cheaper still...
I agree.
I started to tell my buddy that he would have been better off buying the Kindle Fire but then I cut that conversation short because, of course, his Playbook purchase was a done deal.
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.
Maybe Reed Hastings is available (or will be soon)?
RIM made the same mistake with the Playbook as the former PALM did with the Folio: they made devices which were companions to their existing mobile devices instead of allowing them to stand on their own feet.
Worse still for RIM, unlike Palm, the Playbook was a knee-jerk reaction to the iPad's success.
It was laughable, even contemptible, that RIM launched the Playbook with "declaring amateur hour was over", yet in its lacking email and calendar functionality, offered much less than the product they pitched it against.
$100M is nothing by HP standards. Any interested buyers of WebOS technology would not be judging it based on TouchPad - good or bad, but would make the decision based on what they believe they can make out of WebOS.
In the most recent quarter, HP's profits were $240 M. You're saying that a number equal to 40% of a quarter's profits is nothing to a company? Remind me never to invest in a company that you run.
Comments
I hurt myself laughing so hard!!!
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.
Geez, a lump of coal in the stocking is cheaper still...
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.
It's still a dumb move. If they think that people will pay $299 for the 16 GB version, then they're leaving money on the table with the higher storage versions. So they're not collecting as much money as they should. It doesn't matter if they're already written off, they're bringing in less revenue than they would be able to with a tiered pricing strategy. And in their current situation, they can't afford to leave money on the table.
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.
Sorry, but $100 M is a ton of money by any standards. And it also jeopardized their chances of being able to sell the division. If they had been selling Touchpads at $200-250, it would have been of far more interest to a potential buyer than telling the world that they were so bad that they had to be dumped at $99.
http://archive.slickdeals.net/f/2022...fee-Any-Size-1
Maybe there are some people in the world that have a form of self-control where they only buy what they need and think that 32 is good enough, so they don't need the 64 or the larger coffee.
It's still a dumb move. If they think that people will pay $299 for the 16 GB version, then they're leaving money on the table with the higher storage versions. So they're not collecting as much money as they should. It doesn't matter if they're already written off, they're bringing in less revenue than they would be able to with a tiered pricing strategy. And in their current situation, they can't afford to leave money on the table.
Sorry, but $100 M is a ton of money by any standards. And it also jeopardized their chances of being able to sell the division. If they had been selling Touchpads at $200-250, it would have been of far more interest to a potential buyer than telling the world that they were so bad that they had to be dumped at $99.
$100M is nothing by HP standards. Any interested buyers of WebOS technology would not be judging it based on TouchPad - good or bad, but would make the decision based on what they believe they can make out of WebOS.
But no point debating that. Consider this, however: there was obviously an internal fight regarding not just WebOS devices but also PCs. Apothaker was determined to go the route of software services. Others, such as Rubinstein, might have said, "But what about the million TouchPads we have already made?" To make his point, Apothaker might have said, "Just dump them asap and write it off." I'm guessing something akin to that took place. These are not idiots at HP. They simply made a hasty decision.
[...] 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. [...]
And how many years did it take RIM's board to figure out that there was a problem?
RIM's board did nothing for years. HP's board did many stupid things for years.
Which is worse?
Honest question...
If you are buying shit for $299 -- do you want more or less of it?
-The Palo Alto Postulate-
all pandas are not pointless
+1 :d
All these third parties (pc world, cpw phones4u) are still selling at last weeks price
I wonder if we will get the offer in the UK ?
Mind you I wouldnt buy the tablet as I use apps and email, something the playbook lacks
If it didn't have RIM's name against it I doubt anyone would have purchased playbooks
As it is, the Playbook will probably make a nice Tombstone for RIM
Geez, a lump of coal in the stocking is cheaper still...
I agree.
I started to tell my buddy that he would have been better off buying the Kindle Fire but then I cut that conversation short because, of course, his Playbook purchase was a done deal.
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.
Maybe Reed Hastings is available (or will be soon)?
Why not replace the RIM CEO idiots with the former head of AMD- Hector Ruiz?
I'm serious.
Worse still for RIM, unlike Palm, the Playbook was a knee-jerk reaction to the iPad's success.
It was laughable, even contemptible, that RIM launched the Playbook with "declaring amateur hour was over", yet in its lacking email and calendar functionality, offered much less than the product they pitched it against.
Lol, shipping an unpolished tablet without an email app. That's how RIM defines amateur hour being over.
$100M is nothing by HP standards. Any interested buyers of WebOS technology would not be judging it based on TouchPad - good or bad, but would make the decision based on what they believe they can make out of WebOS.
In the most recent quarter, HP's profits were $240 M. You're saying that a number equal to 40% of a quarter's profits is nothing to a company? Remind me never to invest in a company that you run.
How fraking stupid. I no longer feel sorry for you RiM, now I want you to die out like the pointless pandas should.
If not for Pandas, a delicate ecological balance would be destroyed, and bamboo plants would overrun the Earth!