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RIM PlayBook launch disappoints; Intel earnings soar

post #1 of 34
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Research in Motion's lackluster launch of the BlackBerry PlayBook tablet spooked investors on Tuesday. Meanwhile, record earnings bolstered Intel's confidence in continued growth of the PC market, even as CEO Paul Otellini admitted that tablets like Apple's iPad had cannibalized PC sales "a little bit."

PlayBook launch

The 7-inch PlayBook, RIM's answer to Apple's iPad, launched in thousands of stores on Tuesday and "mostly stayed there," with many stores unable to sell through their stock of 5 units, Reuters reports.

According to The Wall Street Journal, several retailers saw modest sales of the device throughout Tuesday. A few stores in Toronto and New York reported that a few people had waited in line on Tuesday morning to purchase the PlayBook.

The traffics not iPad crazy, but there is a buzz, said a salesman at a Sears department store in Toronto. We actually had 5 people in the morning when the store opened at 7.

Last week, advance reviews of the PlayBook criticized the device as being "unfinished" and recommended that customers hold off on purchasing until RIM adds features later this year. RIM co-CEOs Jim Balsillie and Mike Lazaridis quickly spoke out in defense of the PlayBook, calling reviewers' assessments unfair.

The PlayBook is priced to compete with the iPad. The 16GB Wi-Fi only version sells for $499, with 32GB and 64GB models going for $599 and $699 respectively. RIM has revealed that a 4G cellular data version of the PlayBook will come to the Sprint network this summer.

Analysts remain skeptical about the PlayBook's likelihood of success, with a consensus estimate of 3 million units sold in 2011. "It's going to be a tough sell to the consumer," BGC Partner analyst Colin Gillis said.

"It's not going to be in the same league as the iPad," said IDC analyst Al Hilwa. "The question is will it sell more than the [Motorola] Xoom but less than the [Samsung] Galaxy."

Shares of RIM fell 2.94 percent on Tuesday, closing at 53.22 on the Nasdaq.



The muted PlayBook launch contrasts sharply with last month's launch of the iPad 2, which drew record lines. Supply of the iPad 2 has remained scarce for over a month, though Apple was able to stick to its scheduled international launch on March 25, unlike last year with the original iPad.

On Sunday, Toys R Us and Best Buy both held promotions for the device, despite having limited stock of the tablet.

Intel earnings

Intel surprised Wall Street on Tuesday with record first quarter revenue. The chipmaker reported net income of $3.16 billion, up from $2.44 billion in the first quarter of 2010.

The company's revenue soared to $12.85 billion on 25 percent growth, besting consensus estimates of $10.8 billion to $11.6 billion.

During a conference call to discuss the earnings, Intel CEO Paul Otellini admitted that, as expected, consumer demand in the U.S. and Western Europe had been "soft," but noted that emerging markets and enterprise servers had outperformed expectations, according to Seeking Alpha.

Several of Intel's businesses, including Data Center, Embedded and the Digital Home Group posted impressive growth for the quarter. The Data Center Group recorded revenue of $2.5 billion in the first quarter of 2011, with 32 percent growth year over year.

Intel reported "outstanding" demand for its new line of Sandy Bridge chips. Apple added Sandy Bridge Core i5 and i7 CPUs to its MacBook Pro line of laptops in February. NPD estimates that the new MacBook Pros contributed to 47 percent growth in U.S. Mac sales in March.

Otellini remained optimistic about Oak Trail, the company's just launched tablet chip. "Over the course of this year, Intel will have tablet platforms that run Windows, Android and MeeGo," said Otellini.

"We're heads down on a number of designs on tablets on all three of those operating systems," adding that Intel had obtained the Android 3.0 Honeycomb source code from Google and was working on porting it to work with Intel's chips.

Intel also reiterated its commitment to a smartphone chip solution. Otellini said last December that "premier branded" smartphones sporting Intel's chips are scheduled to arrive in the "second half of 2011."

During the call, Otellini took issue with PC growth forecasts from firms like IDC and Gartner, calling them "all over the map."

Otellini sees "low-double digit" growth for the PC market in 2011, compared to Gartner's forecast of 11 percent and IDC's estimate of 6 percent or 7 percent.

When asked whether tablets such as the iPad had softened demand for PCs last quarter, Otellini admitted that tablets had cannibalized PC sales "a little bit," while pointing out that macroeconomics and the post-recession upgrade cycle are bigger causes.

Shares of Intel jumped close to 5 percent in after-hours trading late Tuesday.
post #2 of 34
Somewhere I read that the co-CEOs are referred to as "lazy" and "silly" ...

Maybe more apropos would be "crazy" and "ballsy"
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post #3 of 34
Quote:
Originally Posted by AppleInsider View Post

The PlayBook is priced to compete with the iPad. The 16GB Wi-Fi only version sells for $499, with 32GB and 64GB models going for $599 and $699 respectively. RIM has revealed that a 4G cellular data version of the PlayBook will come to the Sprint network this summer.

Priced to compete how? Like Prunes to Watermelons. The PlayBook is an oversized PDA. Priced to compete would be less then half the price for less then half the functionality and size.
post #4 of 34
Quote:
Originally Posted by AppleInsider View Post

"We're heads down on a number of designs on tablets on all three of those operating systems," adding that Intel had obtained the Android 3.0 Honeycomb source code from Google and was working on porting it to work with Intel's chips.

I read somewhere today that Google has halted the honeycomb update to Samsung. I wonder what version Intel has, but something is up with Android, so we will see. I'm not sure what it feels like to step in front of freight train of iPads going full speed, but apparently Intel wants to find out.

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post #5 of 34
Go Intel. Even with their market dominance and ARM pulling many pricy tech purchases they are still killing it. That said, I do hope AMD will become a more dominate player.
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post #6 of 34
Quote:
Originally Posted by AppleInsider View Post

Analysts remain skeptical about the PlayBook's likelihood of success, with a consensus estimate of 3 million units sold in 2011.

I'll be shocked if they sell more than a few hundred thousand. I'll eat a dog turd if they sell 3 million.
post #7 of 34
Competitors to iPhone are typically dirt cheap, or sometimes free. This is part of the reason for the success of Android. Competitors to the iPad are costing $500-$800. There is no way to use price to gain competing tablet customers. They don't have a chance.

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post #8 of 34
Quote:
Originally Posted by kdjohn3 View Post

I'll be shocked if they sell more than a few hundred thousand. I'll eat a dog turd if they sell 3 million.

Be sure to post the video.
post #9 of 34
Quote:
Originally Posted by AppleInsider View Post

The traffics not iPad crazy, but there is a buzz, said a salesman at a Sears department store in Toronto. We actually had 5 people in the morning when the store opened at 7.

Five people isn't a buzz, it's a smoke break.
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post #10 of 34
Quote:
Originally Posted by kdjohn3 View Post

I'll be shocked if they sell more than a few hundred thousand. I'll eat a dog turd if they sell 3 million.

Which dog turd will you eat: Samsung Tab, Moto Xoom, or RiM PlayBook?
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post #11 of 34
Why can't these companies just not rush to get a product out and instead focus on making a really awesome one, even if there is a two year wait?

It's like -- I'm not inherently against the competition, but everyone comes to the party saying, "Me too!" instead of, "Look at what I've accomplished . . . "
post #12 of 34
Quote:
Originally Posted by solipsism View Post

Which dog turd will you eat: Samsung Tab, Moto Xoom, or RiM PlayBook?

...and pay more to enjoy...

I find the intel comments combined with the gartner report really interesting. Gartner claimed that the pc market shrunk, yet intel claims sandy bridge did really well. I see 2 possibilities here (aside from gartner being wrong or intel being creative with phrasing)
1) gartner is talking only about the us, and international growth has more than made up for us drops. I dontfind this likely because drop in computer sales in Europe and Japan is probably more pronounced than in the us, and while india, china and brazil have certainly grown, I think it's unlikely it makes up for the loss in the biggest current economies, especially since pc sales in the emerging economies tend to be at the lower end.
2) apples growth has shifted a lot of intels chip sales from the lower end chips to higher end chips. If apple ha bee a driver of. Intel chip sales, I think we will see blowout numbers b apple tomorrow. What people fail to realize with apple is that they seem to be one of the few companies remaining that can deliver a better quality product and actually have customers pay more for it. Most other companies in the pc space, cannot convince customers to pay for the better product (e.g. Dell, with alienware and then adamo).
post #13 of 34
Quote:
Originally Posted by bedouin View Post

Why can't these companies just not rush to get a product out and instead focus on making a really awesome one, even if there is a two year wait?

It's like -- I'm not inherently against the competition, but everyone comes to the party saying, "Me too!" instead of, "Look at what I've accomplished . . . "

Anyone want to imagine the thrashing apple would be getting in the blagosphere if they had released a playbook like product (I.e. iPad with mail and calendar only if you have an iPhone....crashes all the time...software is half baked and you don't even have twitter and Facebook clients!).

And rim does this despite being a year late. While no reviews have praised them, none have called them out for the complete lack of respect they are showing for their users' intelligence. Of course, people who do buy the playbook by lining up (presumably these are early adopters who'd should be aware of all the issues) probably deserve the level of respect rim is showing them.
post #14 of 34
Quote:
Originally Posted by addicted44 View Post

Anyone want to imagine the thrashing apple would be getting in the blagosphere if they had released a playbook like product (I.e. iPad with mail and calendar only if you have an iPhone....crashes all the time...software is half baked and you don't even have twitter and Facebook clients!).

And rim does this despite being a year late. While no reviews have praised them, none have called them out for the complete lack of respect they are showing for their users' intelligence. Of course, people who do buy the playbook by lining up (presumably these are early adopters who'd should be aware of all the issues) probably deserve the level of respect rim is showing them.

Dont forget: no native iPad apps or SDK, just iPhone apps that look horrible.

I think if Apple released a Tab, Xoom or PlayBook-like device I bet the tablet market would not exploded the way it did and wed be seeing none of these new players in this market because it would still be a failed endeavor.
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post #15 of 34
Problem being RIM likely can't make any money at those price points, and would probably lose money on every unit sold.

MS can afford to do that, and burn through billions in order to establish themselves in a given market-- ala the Xbox and most likely WP7. But RIM doesn't have billions to burn through, they need to be making money now. By the time a loss leader paid off for them with significant market share, they'd most likely be out of business.
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post #16 of 34
Quote:
Originally Posted by Radjin View Post

Priced to compete how? Like Prunes to Watermelons. The PlayBook is an oversized PDA. Priced to compete would be less then half the price for less then half the functionality and size.

But unlike RIM's PlayBook, my PalmPilot PDA, dated somewhere back in the mid 90's has got integrated calendar and email functionality.
post #17 of 34
I wonder how many play books RIM had manufactured? They will have had to have paid out for these already and will be expecting a return within a short period of time. The longer these units sit in warehouses and stores the worse this will get for RIM.

they are in a better position financially than PALM were but unsold inventory is a major cost and has the potential to dent your Market image and value.
post #18 of 34
Whoa! Wow! Wait- you mean the playbook is not selling well??!? Man, thats weird- didn't see that coming... Like a fiery meteor streaking towards Earth!

Rim is run by a couple of idiots.
post #19 of 34
Quote:
Originally Posted by irnchriz View Post

I wonder how many play books RIM had manufactured? They will have had to have paid out for these already and will be expecting a return within a short period of time. The longer these units sit in warehouses and stores the worse this will get for RIM.

they are in a better position financially than PALM were but unsold inventory is a major cost and has the potential to dent your Market image and value.

Based on what has been reported that 1000 stores carried the Playbook and each one got 5, that would be 5000 tablets. And they couldn't sell all of those.
post #20 of 34
Quote:
Originally Posted by solipsism View Post

Dont forget: no native iPad apps or SDK, just iPhone apps that look horrible.

I think if Apple released a Tab, Xoom or PlayBook-like device I bet the tablet market would not exploded the way it did and wed be seeing none of these new players in this market because it would still be a failed endeavor.

It would have been as well received as Microsoft's failed $1000 UMPCs. There's your long awaited Windows on a tablet!

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post #21 of 34
Quote:
Originally Posted by AppleInsider View Post


When asked whether tablets such as the iPad had softened demand for PCs last quarter, Otellini admitted that tablets had cannibalized PC sales "a little bit," while pointing out that macroeconomics and the post-recession upgrade cycle are bigger causes.

My cousin's been a Windows guy all his life, and several weeks ago just built his PC dream machine - Sandy Bridge, mega RAM, Win 7, the works. But on a whim he also bought an iPad 2 a few weeks later. Now he says he almost never uses the PC and wish he hadn't built it - he can't sing the praises of the iPad 2 loud enough.

So I can see how the iPad could cannibalize PC sales.
post #22 of 34
There's an article over at Cnet that's getting a lot of clicks. Apparently some survey reports that people who buy Android devices do so primarily because they hate Apple, not because they like Android. I would suspect that same goes for the Playbook too. I can confirm that, at least in my microcosm, the survey is correct. Those I know who have something other than an iOS device have no problem admitting they absolutely hate Apple, Inc.
post #23 of 34
The Playbook was DOA. It had zero chance of success. If you want to compete with the iPad you need something very good, very different, and much cheaper. No one in their right mind would buy a crappy clone for the same amount they can get the real thing. You would have to be retarded.

I do not know how anyone at RIM could still have a job after the Playbook failure, the Storm 1+2+... failures, etc... It is clear, they have no clue. The only phones RIM sells are to people who have no choice and are either given or forced to use a crappy Blackberry by their employer. My employer gave me a Blackberry Bold and i gave it back after a week...totally unusable. What a POS those things are.

The iPhone is so far ahead, i do not see anyone catching it. By the time the cloners copy the latest iPhone, Apple innovates and has something new.
post #24 of 34
Quote:
Originally Posted by mstone View Post

I read somewhere today that Google has halted the honeycomb update to Samsung. I wonder what version Intel has, but something is up with Android, so we will see. I'm not sure what it feels like to step in front of freight train of iPads going full speed, but apparently Intel wants to find out.

Could it be the return of the old (or should that be 'young' lol) management re thinking a few things I wonder?
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post #25 of 34
Quote:
Originally Posted by lkrupp View Post

There's an article over at Cnet that's getting a lot of clicks. Apparently some survey reports that people who buy Android devices do so primarily because they hate Apple, not because they like Android. I would suspect that same goes for the Playbook too. I can confirm that, at least in my microcosm, the survey is correct. Those I know who have something other than an iOS device have no problem admitting they absolutely hate Apple, Inc.

The irony here is they must be Windows fans (most Linux geeks I know don't 'hate' Apple per se). This in theory, one would think, means if there were a viable Windows tablet they'd drop Android etc. in a heart beat to return to their true love. Of course if that MS mobile OS isn't based on DOS they may find themselves in a quandary!


Quote:
Originally Posted by iansilv View Post

Whoa! Wow! Wait- you mean the playbook is not selling well??!? Man, thats weird- didn't see that coming... Like a fiery meteor streaking towards Earth!

Rim is run by a couple of idiots.

They may well run RIM into the ground financially trying to take on Apple. I notice RBC have been very positive on AAPL this last year or so which makes me think their attitude to RIM isn't blind faith so much these days.


Quote:
Originally Posted by kdjohn3 View Post

I'll be shocked if they sell more than a few hundred thousand. I'll eat a dog turd if they sell 3 million.

I'd put a time limit on that bet
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post #26 of 34
CNET is reporting that AT&T Blackberry customers are not being allowed to bridge to the PlayBook because of bridging's free tethering feature. Blackberry bridging is required to use email or calendar on the PlayBook. This means that in addition to the PlayBook being useless for non-Blackberrry customers, it is also useless to all AT&T blackberry customers. The PlayBook disaster is epic.

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post #27 of 34
Quote:
Originally Posted by lkrupp View Post

There's an article over at Cnet that's getting a lot of clicks. Apparently some survey reports that people who buy Android devices do so primarily because they hate Apple, not because they like Android. I would suspect that same goes for the Playbook too. I can confirm that, at least in my microcosm, the survey is correct. Those I know who have something other than an iOS device have no problem admitting they absolutely hate Apple, Inc.

I do not think that is the reason..... Most people I know bought an Android phone ( myself included) because the iPhone was not available on networks other than AT&T. About 1/3 of my sales territory is Not covered well by AT&T. That is why I need the Verizon service. If they had had an iPhone last year about this same time I would have it.... I got a Droid as it was the best phone available on Verizon at the time. I own a couple of macs and an iPad. I even talked my boss into letting me get a Macbook Pro as my company computer ( first one in the company ). So I definitely do not Hate Apple...

I know that no one here likes to admit it, but the Android phones do have some nice features that the iPhone lacks and I would hate to give them up to get the iPhone now that it is available on Verizon.

1) Google Maps and navigation is simply better on Android....

2) Android has excellent voice commands and speech recognition is built into the OS... I drive a lot and these voice commands are excellent... I also use the speech to text feature all of the time. On any text input field in any application you can hit the microphone button and simply speak the text. It works great....

3) Having a USB port and basic file system is great. I can download a driver/firmware file to my Droid from the internet. Plug it into the USB port of my customer's computer and copy the file over to it. In my work I often need to do this and it is faster than tethering my phone to the laptop and then moving the file to a USB memory device so that I can get it to the customer's computer. I REALLY wish Apple would give the ability to do this with the IPhone/iPad....

4) Ability to add widgets to the home screens.... Apple REALLY needs to allow this....

5) 4G... A friend has the HTC Thunderbolt and that thing is really fast on the internet....

Now I do not know if these great features make up for the buggy unpolished nature of Android, but they are hard to give up once you get used to them. As for me, I am not going to an iPhone until they at least offer 4G so it will probably be a year or so before I switch from Android. Hopefully, Apple will add some of the above features by then....
post #28 of 34
The PlayBook is DOA.
post #29 of 34
RIM has to be the short of the century.
post #30 of 34
Quote:
Originally Posted by sranger View Post

I do not think that is the reason..... Most people I know bought an Android phone ( myself included) because the iPhone was not available on networks other than AT&T. About 1/3 of my sales territory is Not covered well by AT&T. That is why I need the Verizon service. If they had had an iPhone last year about this same time I would have it.... I got a Droid as it was the best phone available on Verizon at the time. I own a couple of macs and an iPad. I even talked my boss into letting me get a Macbook Pro as my company computer ( first one in the company ). So I definitely do not Hate Apple...

I know that no one here likes to admit it, but the Android phones do have some nice features that the iPhone lacks and I would hate to give them up to get the iPhone now that it is available on Verizon.

1) Google Maps and navigation is simply better on Android....

2) Android has excellent voice commands and speech recognition is built into the OS... I drive a lot and these voice commands are excellent... I also use the speech to text feature all of the time. On any text input field in any application you can hit the microphone button and simply speak the text. It works great....

3) Having a USB port and basic file system is great. I can download a driver/firmware file to my Droid from the internet. Plug it into the USB port of my customer's computer and copy the file over to it. In my work I often need to do this and it is faster than tethering my phone to the laptop and then moving the file to a USB memory device so that I can get it to the customer's computer. I REALLY wish Apple would give the ability to do this with the IPhone/iPad....

4) Ability to add widgets to the home screens.... Apple REALLY needs to allow this....

5) 4G... A friend has the HTC Thunderbolt and that thing is really fast on the internet....

Now I do not know if these great features make up for the buggy unpolished nature of Android, but they are hard to give up once you get used to them. As for me, I am not going to an iPhone until they at least offer 4G so it will probably be a year or so before I switch from Android. Hopefully, Apple will add some of the above features by then....

These are critical things - features that work definitively into your own workflow thatadd value to the Android platform in your case - and why Android makes the most sense for you. Now whether Apple sees those items as "must-haves" for its own user profile for the iPhone depends largely on:
a) whether a significant number of consumers ask for those features
and
b) whether Apple is able to develop a way to deliver them in a way that fits best with the development plan for the platform and can be delivered in a way that fits the iPhone user profile and UI.

Why are these important? Because to capture the widest possible user category you need to deliver a polished and easy-to-use interface and feature set that reflects the mainstream desired features. Your usage profile may be well outside of the average user profile, and therefore not a capture-point, feature-wise. Nice to have is not the same as must have - obviously. The fact that Android leaves so much open to user configuration work well for savvy users, and against average users. Which, while jailbreaking an iPhone adds in those same features means that the jailbroken iPhone moves into that same savvy user profile that is problematic for the average user.

4G will be available when it is more widely deployed, both ATT and VRZ are just starting deployment so only a lucky few so far have routine 4G access. And the jury is still out on how 4G affects battery life. That being said I think from the commentary from friends so far the Thunderbolt is probably the best Android to date, but given the number of releases per year by the handset mfgrs using Android - the next sweet device may be right around the corner.
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post #31 of 34
Quote:
Originally Posted by sranger View Post

... 3) Having a USB port and basic file system is great. I can download a driver/firmware file to my Droid from the internet. Plug it into the USB port of my customer's computer and copy the file over to it. In my work I often need to do this and it is faster than tethering my phone to the laptop and then moving the file to a USB memory device so that I can get it to the customer's computer. I REALLY wish Apple would give the ability to do this with the IPhone/iPad....

You can do this if you have an iPhone or iPad or iPod touch, but Apple has made it even easier. What you do is simply download the file directly to the computer you want it on.
post #32 of 34
Quote:
Originally Posted by anonymouse View Post

You can do this if you have an iPhone or iPad or iPod touch, but Apple has made it even easier. What you do is simply download the file directly to the computer you want it on.


Really,

What Apple computer has built in 3G?

As I said before I know I can tether the laptop to phone and download file and then transfer to USB memory stick and then transfer to the customer's computer ( in manufacturing and usually does not have internet access )

Or I can download file on Droid insert USB cable, copy file to computer... ( It really is a lot easier this way )


Again I realize that my needs might be different than most people, but it really is a very basic feature....
post #33 of 34
All iPhones have always connected to USB thru a cable connected to the 30-pin port.
Quote:
Originally Posted by sranger View Post

Really,

What Apple computer has built in 3G?

As I said before I know I can tether the laptop to phone and download file and then transfer to USB memory stick and then transfer to the customer's computer ( in manufacturing and usually does not have internet access )

Or I can download file on Droid insert USB cable, copy file to computer... ( It really is a lot easier this way )


Again I realize that my needs might be different than most people, but it really is a very basic feature....
post #34 of 34
It's just indefensible what RIM is doing with the playbook! Ugh!

My GF's sister's boyfriend is a Business consultant and is so biased against Apple computers, iPhones, laptops, etc.

He's got a blackberry and a Dell laptop connected to a monitor and keyboard in his office and it looks like 1995 when I walk in there with all the cables and pwr bricks. It gives me the willies!

They were vacationing in France and she wanted me to fwd her emails to his BB and it couldn't open 10 emails...I had to send them individually. Sheez!

I love my iPhone 4, my iMac and I know I will love my iPad2 when I can afford it.

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