It’s costing RIM a fortune to keep its Playbook in the shops and it does not seem to be doing the troubled outfit any good at all.
According to Ars Technica, while the Playbook is jumping off the shelves like superglued bricks, the outfit is taking a near half-billion-dollar hit for sitting inventory that must now be sold in a fire sale.
RIM has already announced that it will not be meeting its financial targets for the year, and the main reason is the unsuccessful performance of the BlackBerry Playbook tablet.
RIM flogged only 150,000 units this quarter, compared with 250,000 last quarter, and 500,000 in the first quarter of the year.
It has discounted the tablets to $300 across the product line-up, and quickly sold out at retailers like Best Buy by last week’s Black Friday.
RIM’s co-CEO Mike Lazaridis offered up continued support for the tablet saying that after he ordered a price cut there was an “increase in demand”.
He insisted that RIM was committed to the PlayBook and believes the tablet market is still in its infancy.
In a press statement, he said that a number of factors have led to the need for an inventory provision in the third quarter. He says the PlayBook will be further enhanced with the upcoming PlayBook OS 2.0 software.
RIM’s Playbook had a number of software problems and could not handle Flash particularly well – which, at least in the UK, was the centre of its marketing drive.