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

post #1 of 47
Thread Starter 
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.
post #2 of 47
How fraking stupid. I no longer feel sorry for you RiM, now I want you to die out like the pointless pandas should.

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post #3 of 47
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.
post #4 of 47
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
post #5 of 47
Still too much.
post #6 of 47
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.
post #7 of 47
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.
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post #8 of 47
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.
post #9 of 47
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.

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post #10 of 47
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.
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post #11 of 47
post #12 of 47
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
post #13 of 47
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.
post #14 of 47
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.
post #15 of 47
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.
post #16 of 47
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.
post #17 of 47
RIM should hire Mark Hurd or Léo Apotheker as their new CEO
post #18 of 47
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.
post #19 of 47
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.
post #20 of 47
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

post #21 of 47
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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post #22 of 47
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.
post #23 of 47
Quote:
Originally Posted by chadmatic View Post


I hurt myself laughing so hard!!!
post #24 of 47
Quote:
Originally Posted by island hermit View Post

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...
post #25 of 47
Quote:
Originally Posted by Prof. Peabody View Post

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 View Post

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.
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post #26 of 47
This must be the new way to market products. I saw a billboard that McDonalds is selling all sizes of its coffee for $1:

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.
post #27 of 47
Quote:
Originally Posted by jragosta View Post

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.
post #28 of 47
Quote:
Originally Posted by AppleInsider View Post

[...] 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?

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post #29 of 47


Honest question...

If you are buying shit for $299 -- do you want more or less of it?
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post #30 of 47
oops. double post.
post #31 of 47
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.
post #32 of 47
The customer will pay more... for less... of worse...
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post #33 of 47
Quote:
Originally Posted by quinney View Post

all pandas are not pointless

+1 :d
post #34 of 47
RIM of course sells through third parties in the UK (or appear to)

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
post #35 of 47
Quote:
Originally Posted by grub View Post

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.
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post #36 of 47
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.

Maybe Reed Hastings is available (or will be soon)?
post #37 of 47
So great.

Why not replace the RIM CEO idiots with the former head of AMD- Hector Ruiz?

I'm serious.
post #38 of 47
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.
post #39 of 47
Quote:
Originally Posted by chadmatic View Post


Lol, shipping an unpolished tablet without an email app. That's how RIM defines amateur hour being over.

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post #40 of 47
Quote:
Originally Posted by stelligent View Post

$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.
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