RIM's PlayBook may undercut Apple iPad at $399 - report
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.
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.
Comments
Just in time for Christmas, eh RIM?
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.
Shouldn't the entry level model be $299? And the 16GB model $399?
Yeah but will this thing get you laid like the iPad will? I don't think so.
Of course not.
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.
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!
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.
Beisdes, shouldn't half the screen size come at half the price?
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.
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.
and I MAY buy 10 billion iPads....
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.
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?
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!
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.