RIM recently announced that the BlackBerry PlayBook tablet would be reduced from $499 down to $199 for a limited time, and now it would appear that Best Buy may have actually stopped selling the tablet.
According to the guys over at Electronista, a number of customer orders for the BlackBerry PlayBook at Best Buy have been canceled, and the company has also removed the tablet from its website.
This could mean that Best Buy has decided to stop selling the tablet as it hasn’t exactly been that popular, although it does seem strange to stop selling the device at a time when they will obviously sell more than they previously had because of the much lower price.
Market Response and Sales Strategy
The BlackBerry PlayBook, launched by Research In Motion (RIM), was initially met with mixed reviews. Despite its sleek design and powerful hardware, it struggled to compete with other tablets in the market, such as Apple’s iPad and various Android tablets. The significant price drop to $199 was a strategic move by RIM to boost sales and clear out inventory. This kind of price reduction is not uncommon in the tech industry, especially for products that have not met sales expectations.
However, the sudden removal of the PlayBook from Best Buy’s website and the cancellation of customer orders raised eyebrows. It led to speculation that Best Buy might be discontinuing the sale of the PlayBook altogether. This move seemed counterintuitive, especially during a promotional period when the lower price was likely to attract more buyers.
Best Buy’s Official Statement
Best Buy has now issued the following statement.
Starting Sunday, November 20th, Best Buy offered $300 instant savings to the BlackBerry PlayBook, reducing the price to $299.99 and $199.99 for the 32 GB and 16 GB, respectively. Customers have responded very positively to this short-term promotion available until Dec. 3 and, as a result, we are currently sold out of our inventory. We will have additional units available in the near future, at which time customers will be able to purchase the devices online at www.bestbuy.com.
This statement clarifies that the removal of the PlayBook from Best Buy’s website was due to the overwhelming response to the price reduction, leading to a temporary sell-out of their inventory. It also reassures customers that more units will be available soon, allowing them to take advantage of the promotional pricing.
Implications for RIM and the Tablet Market
The situation with the BlackBerry PlayBook at Best Buy highlights several important aspects of the tech market. First, it underscores the importance of pricing in driving consumer demand. The significant price cut made the PlayBook a more attractive option for budget-conscious consumers, demonstrating how price adjustments can impact sales volume.
Second, it reflects the challenges faced by companies like RIM in a highly competitive market. Despite the PlayBook’s technical capabilities, it struggled to gain a foothold against dominant players like Apple and Samsung. This scenario is a reminder of the fierce competition in the tech industry, where even well-designed products can falter without strong market positioning and consumer appeal.
Finally, the quick sell-out of the PlayBook at the reduced price suggests that there is still a market for the device, albeit at a lower price point. This could inform future pricing strategies for RIM and other companies looking to move inventory and attract customers.
The BlackBerry PlayBook’s journey through the market, marked by a significant price drop and subsequent sell-out at Best Buy, offers valuable insights into consumer behavior, pricing strategies, and the competitive dynamics of the tech industry. As RIM and other companies navigate these challenges, they must continue to adapt and innovate to meet the evolving demands of the market.
Source
Updated 29th November 2011
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