Things are certainly not looking good for Research in Motion Ltd., with its latest announcement adding to a growing list of setbacks for its first tablet. With lower than expected sales of PlayBook, RIM was forced to offer its first tablet at a cheap cost. And now, the Canadian company announced that it will write off its inventory of Playbook tablets.
Given the low price of $200 from $500, RIM said it will have a pre-tax charge of $485 million as the tablet’s value goes down.
The tablet’s sales have not skyrocket since its release, forcing RIM to lower prices and even offer generous packages to lure companies to adopt its new tablet.
While it remains to be seen if PlayBook will still be able to recover from poor sales, RIM Co-CEO Mike Lazaridis stressed that the company will stand by its first tablet, and continue to develop its full potential.