PlayBook Exhibits Low Demand and Loss For RIM

The RIM BlackBerry PlayBook has so far been a dud. Even with steep discounts, RIM is still left with inventory, forcing the company to take a $485 million charge. From AllThingsD:

RIM sold just 150,000 PlayBooks “into the channel” this quarter, down from about 500,000 in the first quarter and 250,000 in the second.


Because of the tablet’s lousy performance, the company will take a $485 million charge and will not meet the $5.3 to $5.6 billion in revenue it had forecast when it last reported earnings.


Despite the PlayBook’s lousy performance at market and its deleterious effect on the company’s bottom line, RIM’s leadership says it has no plans to ditch the device.

The phrase “into the channel” is key. These numbers do not represent the total units sold to consumers, but rather sold into retail inventory.

The fact that their management wants to continue with this device is amazing. Consumers have shown that they are only willing to part with $199 for a new PlayBook. Considering that is the same price as the Kindle Fire—which had demand from the day it was released—I have to wonder what the PlayBook can offer that Amazon can’t, even at a loss.