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RIM's PlayBook may undercut Apple iPad at $399 - report

post #1 of 166
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Research in Motion's initial entrance into the tablet market may prove aggressive with a rumored $399 starting price point for a contract-free PlayBook.

Mobility Insider, which was first to get a hands-on with the PlayBook, claims that the PlayBook will have an entry price of $399 for the 8GB model. If true, that would be $100 cheaper than the entry-level 16GB iPad, which starts at $499.

For the same capacity, RIM and Apple would have identical pricing, as the 16GB PlayBook is rumored to cost $499. And the high-end model, with 32GB of storage, is said to cost $599.

"Besides the difference of internal memory, all models will be identical in features and functionality," the report said. "There will be no models with built-in WWAN connectivity, so if you don’t have a BlackBerry to tether your data connection for free, you will have to rely on WiFi or a Mobile Hotspot."

Earlier this month, RIM revealed that its multi-touch tablet would have a starting price under $500 when it goes on sale in North America in the first quarter of 2011. Many assumed that would turn out to be a $499 starting price, equal to the iPad.

But the PlayBook has a 7-inch display, which is smaller than the 9.7-inch screen found on the iPad. Apple Chief Executive Steve Jobs even called out devices like the PlayBook with smaller screens, saying that they were too small to be functional for most users.

Analyst Mike Abramsky said if the rumor of a $399 starting price is true, he expects the gross margin of the PlayBook to be between 25 percent and 30 percent. He also anticipates that the forthcoming PlayBook with integrated 3G or 4G wireless connectivity would be priced at between $299 and $499 with a two-year contract.

"PlayBook pricing (unverified) is aggressive, which shows RIM is serious about gaining share," Abramsky wrote. "Investors are intrigued by the PlayBook, but in their minds questions remain: how will it stand up against iPad? What about distribution? What about Cisco's pending offering for business? And what might be RIM's market share vs. many tablet competitors?"

RIM has already been aggressive in comparing the PlayBook to the iPad. Last week, the company released a video in which it compared the Web browsing performance of the two devices. The PlayBook was shown to load websites faster than the iPad, and RIM's tablet also plays Adobe Flash content.

Of course, speed and price of the iPad could be different come next year, when Apple is expected to introduce its second-generation device. The PlayBook is expected to go on sale around the same time in early 2011.
post #2 of 166
But...but...but...I don't *want* a playbook. Mommy, make the nasty man stop. Call Santa Steve - he has my toy list!
post #3 of 166
First quarter of 2010?

Just in time for Christmas, eh RIM?
post #4 of 166
Quote:
Originally Posted by AppleInsider View Post

Research in Motion's initial entrance into the tablet market may prove aggressive with a rumored $399 starting price point for a contract-free PlayBook.

Mobility Insider, which was first to get a hands-on with the PlayBook, claims that the PlayBook will have an entry price of $399 for the 8GB model. If true, that would be $100 cheaper than the entry-level 16GB iPad, which starts at $499.

For the same capacity, RIM and Apple would have identical pricing, as the 16GB PlayBook is rumored to cost $499. And the high-end model, with 32GB of storage, is said to cost $599.

"Besides the difference of internal memory, all models will be identical in features and functionality," the report said. "There will be no models with built-in WWAN connectivity, so if you dont have a BlackBerry to tether your data connection for free, you will have to rely on WiFi or a Mobile Hotspot."

Earlier this month, RIM revealed that its multi-touch tablet would have a starting price under $500 when it goes on sale in North America in the first quarter of 2010. Many assumed that would turn out to be a $499 starting price, equal to the iPad.

But the PlayBook has a 7-inch display, which is smaller than the 9.7-inch screen found on the iPad. Apple Chief Executive Steve Jobs even called out devices like the PlayBook with smaller screens, saying that they were too small to be functional for most users.

Analyst Mike Abramsky said if the rumor of a $399 starting price is true, he expects the gross margin of the PlayBook to be between 25 percent and 30 percent. He also anticipates that the forthcoming PlayBook with integrated 3G or 4G wireless connectivity would be priced at between $299 and $499 with a two-year contract.

"PlayBook pricing (unverified) is aggressive, which shows RIM is serious about gaining share," Abramsky wrote. "Investors are intrigued by the PlayBook, but in their minds questions remain: how will it stand up against iPad? What about distribution? What about Cisco's pending offering for business? And what might be RIM's market share vs. many tablet competitors?"

RIM has already been aggressive in comparing the PlayBook to the iPad. Last week, the company released a video in which it compared the Web browsing performance of the two devices. The PlayBook was shown to load websites faster than the iPad, and RIM's tablet also plays Adobe Flash content.

Of course, speed and price of the iPad could be different come next year, when Apple is expected to introduce its second-generation device. The PlayBook is expected to go on sale around the same time in early 2011.

Well, they got the price right, but not the date. The next iPad is going to suck all the hype away from PlayBook.
post #5 of 166
So, the 16 GB, 7" PlayBook is $499?

Shouldn't the entry level model be $299? And the 16GB model $399?
post #6 of 166
Yeah but will this thing get you laid like the iPad will? I don't think so.
post #7 of 166
Quote:
Originally Posted by fraklinc View Post

Yeah but will this thing get you laid like the iPad will? I don't think so.



Of course not.
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post #8 of 166
Quote:
Originally Posted by fraklinc View Post

Yeah but will this thing get you laid like the iPad will? I don't think so.

Despite what all the guys with smaller tablets say, size really does matter.
post #9 of 166
Quote:
Originally Posted by eightzero View Post

But...but...but...I don't *want* a playbook. Mommy, make the nasty man stop. Call Santa Steve - he has my toy list!

Can you imagine opening a box, expecting an iPad and Santa wife got one of these as the nice salesman told her it was just the same? OMG! I bet a few wives will not be too popular this Christmas!
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post #10 of 166
Quote:
Originally Posted by Postulant View Post

So, the 16 GB, 7" PlayBook is $499?

Shouldn't the entry level model be $299? And the 16GB model $399?

That's like saying that my minivan should cost more than a Ferrari because my minivan sits 7 people and the Ferrari sits 2.
post #11 of 166
Not by anything you'd be interested in as these 7 inch form factors will make you look an uber geek walking around with an oversized cellphone.

Beisdes, shouldn't half the screen size come at half the price?
post #12 of 166
So there you have it. The competition can't match Apple on price hence the only way to even stay close is to use a smaller display.

Bringing the iPad in at the price Apple has is perhaps the company's most impressive accomplishment in quite some time.

As much as all the engineering skill Apple has brought to bear on the iPad is impressive, doing it all while trumping the competition on price before this segment has hardly gotten off the ground, now that's something of note, to be sure.
post #13 of 166
Quote:
Originally Posted by samab View Post

That's like saying that my minivan should cost more than a Ferrari because my minivan sits 7 people and the Ferrari sits 2.

Horrible analogy.

Like Steve said, with these things you're paying more for less.
post #14 of 166
I still love the fact so many ppl called the iPad an oversized iPod. What heck to ppl have to say about the 7"? I mean if you have one of those 4" droids and you get a tab, then its o ly 3" more! I have to agree with jobs on this and that 7" is too small. For what they do, 10" is perfect. Still, I'm a lappy fan.
post #15 of 166
"MAY" undercut the iPad.....

and I MAY buy 10 billion iPads....
post #16 of 166
Ouch! There go their profit margins.
post #17 of 166
Quote:
Originally Posted by samab View Post

That's like saying that my minivan should cost more than a Ferrari because my minivan sits 7 people and the Ferrari sits 2.

If they have the same engine, same suspension etc, then yeah your minivan should cost more than a Farrari.
post #18 of 166
Quote:
Originally Posted by samab View Post

That's like saying that my minivan should cost more than a Ferrari because my minivan sits 7 people and the Ferrari sits 2.

Since when is the iPad a minivan and the PlayBook a Ferrari?
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post #19 of 166
Quote:
Originally Posted by carmissimo View Post

so there you have it. The competition can't match apple on price hence the only way to even stay close is to use a smaller display.

Bringing the ipad in at the price apple has is perhaps the company's most impressive accomplishment in quite some time.

As much as all the engineering skill apple has brought to bear on the ipad is impressive, doing it all while trumping the competition on price before this segment has hardly gotten off the ground, now that's something of note, to be sure.

Bingo!
post #20 of 166
7 inch display with 16 GB will be 499? Good luck selling.

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post #21 of 166
Quote:
Originally Posted by samab View Post

That's like saying that my minivan should cost more than a Ferrari because my minivan sits 7 people and the Ferrari sits 2.

Really? Kinda lame. I get the impression you're increasingly driven to find some kind of anti-Apple angle, even when it doesn't make much sense.

I mean, seriously: comparing screen size to seating capacity? Good lord. But let's play: what about the PlayBook gives it "Ferrari" status against the iPad's "minivan"? Since that's how this works, apparently.

And for bonus points, maybe you can square the now minivan-esque status of the iPad with the constant drumbeat of how only hipsters and posers buy them so they can look cool.
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post #22 of 166
Quote:
Originally Posted by samab View Post

That's like saying that my minivan should cost more than a Ferrari because my minivan sits 7 people and the Ferrari sits 2.

That's like sayin' "It's not AT&T I hate... it's just Apple."
post #23 of 166
Quote:
Originally Posted by samab View Post

That's like saying that my minivan should cost more than a Ferrari because my minivan sits 7 people and the Ferrari sits 2.

Taking a Ferrari emblem and slapping it on a Ford Pinto does not make it a Ferrari.
post #24 of 166
I've had the 32 gigabyte ipad since April. Its now more than half full (with no movies). About 1/3rd music, half apps (and documents) and assorted other stuff like photos.

On initial purchase I hadn't a clue about how much space it needed. Now 32 gigs seems about right. At 16 gigs I'd making difficult choices. It may turn out that I should have gone for 64 gigs.

But, judging from the iPad use of memory, 8 gigs would be very difficult to use. I'd lose about half of the functionality that I now have. Assuming similar memory use with the RIM device, the entry model seems dysfunctional.
post #25 of 166
"The PlayBook is expected to go on sale around the same time in early 2011."
Oops! Too late!
post #26 of 166
Quote:
Originally Posted by samab View Post

That's like saying that my minivan should cost more than a Ferrari because my minivan sits 7 people and the Ferrari sits 2.

I hope you're not seriously saying that this is a Ferrari in comparison? Surely you wouldn't be that naive? The question is whether it even has an s-ips screen, or will have a cheaper one like all other cheaper tablets will.

This is one area in which Apple will be doing better. All the part quality will be the same among tablets, other than the case, which in most models will be a much cheaper plastic, rather than the more expensive machined aluminum alloy Apple uses. Otherwise, it's a matter of higher performing components, which, sometimes, but not always, cost more. The screen is one area in which it does cost more, and a 9.7" s-ips screen costs a lot more than a 7" TN screen.

But, as usual, you're really just trying to be annoying, as even you don't believe what you said.
post #27 of 166
In other news: 2nd gen iPad to come out in April, start at $399 as well. Obviously.
post #28 of 166
Quote:
Originally Posted by addabox View Post

Really? Kinda lame. I get the impression you're increasingly driven to find some kind of anti-Apple angle, even when it doesn't make much sense.

I mean, seriously: comparing screen size to seating capacity? Good lord. But let's play: what about the PlayBook gives it "Ferrari" status against the iPad's "minivan"? Since that's how this works, apparently.

And for bonus points, maybe you can square the now minivan-esque status of the iPad with the constant drumbeat of how only hipsters and posers buy them so they can look cool.

he thinks he has found a way to dumb things down for us dummies. The analogy doesn't make sense.

in the end, regardless of quality (ie ferrari vs minivan) what determines a tablet's success is how users interact with it. Will it do what people want to do or will it annoy and confuse people?
post #29 of 166
Quote:
Originally Posted by Scorpio View Post

Taking a Ferrari emblem and slapping it on a Ford Pinto does not make it a Ferrari.

Good one! I say good one because you followed up one inane analogy with an even more absurd statement that has nothing to do with this topic.
post #30 of 166
Quote:
Originally Posted by Cpsro View Post

"The PlayBook is expected to go on sale around the same time in early 2011."
Oops! Too late!

I doubt they could get much in the way of consumer sales for this, so they're positioning it more for business. If someone really doesn't want an Apple tablet, they would be better off either buying the Samsung Tab, or better yet, waiting until Android is ready for tablets, next year.
post #31 of 166
Quote:
Originally Posted by Povilas View Post

7 inch display with 16 GB will be 499? Good luck selling.

I think people make too much of the price. If there is anything Apple has proven time and time again, it's that if it's the *right* thing, people will pay a lot more for it than you'd expect.

I would pay $499 for a 7" iPad w/16GB for instance.

The reasons not to buy the playbook are because it's an Adobe/RIM frankentablet that will probably suck and won't have any decent apps. If it actually worked, it would be totally worth it and a big seller. That's obviously what the makers believe.

They just are too close to it to see what a POS it's going to be sadly.
post #32 of 166
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post #33 of 166
Quote:
Originally Posted by Prof. Peabody View Post

I think people make too much of the price. If there is anything Apple has proven time and time again, it's that if it's the *right* thing, people will pay a lot more for it than you'd expect.

I would pay $499 for a 7" iPad w/16GB for instance.

The reasons not to buy the playbook are because it's an Adobe/RIM frankentablet that will probably suck and won't have any decent apps. If it actually worked, it would be totally worth it and a big seller. That's obviously what the makers believe.

They just are too close to it to see what a POS it's going to be sadly.

Yes you are totally right, but what i mean is if they can't even match iPad hardware, so how it's better? Apple always gets bashed for weak hardware.

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post #34 of 166
Quote:
Originally Posted by Scorpio View Post

Taking a Ferrari emblem and slapping it on a Ford Pinto does not make it a Ferrari.

No it makes a Pintorari.... as in Plaipad.
post #35 of 166
Quote:
Originally Posted by kube View Post

I've had the 32 gigabyte ipad since April. Its now more than half full (with no movies). About 1/3rd music, half apps (and documents) and assorted other stuff like photos.

On initial purchase I hadn't a clue about how much space it needed. Now 32 gigs seems about right. At 16 gigs I'd making difficult choices. It may turn out that I should have gone for 64 gigs.

But, judging from the iPad use of memory, 8 gigs would be very difficult to use. I'd lose about half of the functionality that I now have. Assuming similar memory use with the RIM device, the entry model seems dysfunctional.

Yep, I've the 16 GB one and it will end as the "backup iPad" soon...
post #36 of 166
The 4.2 update added a whole lot more functions that weren't there before, including a whole raft of enterprise level administrative tools for managing fleets of iPads.

Have fun RIM.
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post #37 of 166
I'm fine, thanks.

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post #38 of 166
Quote:
Originally Posted by Tallest Skil View Post

In other news: 2nd gen iPad to come out in April, start at $399 as well. Obviously.

If Apple does it the way they do it with the iPhone, they keep the old model around at a discounted entry-model and the new model will be premium priced, So something like:

iPad first Gen 16GB Wifi: $399
iPad second Gen 32GB Wifi: $499
post #39 of 166
Quote:
Originally Posted by kube View Post

I've had the 32 gigabyte ipad since April. Its now more than half full (with no movies). About 1/3rd music, half apps (and documents) and assorted other stuff like photos.

On initial purchase I hadn't a clue about how much space it needed. Now 32 gigs seems about right. At 16 gigs I'd making difficult choices. It may turn out that I should have gone for 64 gigs.

But, judging from the iPad use of memory, 8 gigs would be very difficult to use. I'd lose about half of the functionality that I now have. Assuming similar memory use with the RIM device, the entry model seems dysfunctional.

That depends on how they intend to deliver content. Imagine when/if Apple introduce a cloud based streaming model for movies, 32 Gb is going to be more than enough.
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post #40 of 166
Yep, I don't want it either. I'd even choose the Samsung tablet over RIM's. The Galaxy looks pretty good in fact as an alternative to the iPad for those that can't get their hands on one this season.
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