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

Posted:
in iPad edited January 2014
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.
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Comments

  • Reply 1 of 166
    eightzeroeightzero Posts: 2,209member
    But...but...but...I don't *want* a playbook. Mommy, make the nasty man stop. Call Santa Steve - he has my toy list!
  • Reply 2 of 166
    First quarter of 2010?



    Just in time for Christmas, eh RIM?
  • Reply 3 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 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 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.
  • Reply 4 of 166
    postulantpostulant Posts: 1,270member
    So, the 16 GB, 7" PlayBook is $499?



    Shouldn't the entry level model be $299? And the 16GB model $399?
  • Reply 5 of 166
    Yeah but will this thing get you laid like the iPad will? I don't think so.
  • Reply 6 of 166
    MacProMacPro Posts: 17,835member
    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.
  • Reply 7 of 166
    postulantpostulant Posts: 1,270member
    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.
  • Reply 8 of 166
    MacProMacPro Posts: 17,835member
    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!
  • Reply 9 of 166
    samabsamab Posts: 1,953member
    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.
  • Reply 10 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?
  • Reply 11 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.
  • Reply 12 of 166
    postulantpostulant Posts: 1,270member
    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.
  • Reply 13 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.
  • Reply 14 of 166
    ihxoihxo Posts: 562member
    "MAY" undercut the iPad.....



    and I MAY buy 10 billion iPads....
  • Reply 15 of 166
    Ouch! There go their profit margins.
  • Reply 16 of 166
    ihxoihxo Posts: 562member
    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.
  • Reply 17 of 166
    cmf2cmf2 Posts: 1,427member
    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?
  • Reply 18 of 166
    postulantpostulant Posts: 1,270member
    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!
  • Reply 19 of 166
    7 inch display with 16 GB will be 499? Good luck selling.
  • Reply 20 of 166
    addaboxaddabox Posts: 12,660member
    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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