Tablet manufacturers just don’t seem to be able to make their devices as popular as Apple’s iPad. First, we had HP, who announced they were canceling the HP Touchpad, which they eventually sold off for $99.
Now it looks like RIM will be reducing the price of their BlackBerry PlayBook. RIM’s CEO Jim Balsillie mentioned in the company’s recent earnings call that they will offer price cuts on the PlayBook in the form of rebates, although no specific details were given at the time.
RIM also announced how many PlayBook tablets they shipped last quarter, and it turns out the company only shipped 200,000 of the device, which is way below what the company had hoped to sell.
Challenges Faced by Tablet Manufacturers
The struggle to compete with Apple’s iPad is not unique to RIM. Many other manufacturers have faced similar challenges. The iPad’s sleek design, robust ecosystem of apps, and strong brand loyalty have made it a tough competitor. For instance, HP’s Touchpad, despite being a well-designed device, failed to capture significant market share and was eventually sold off at a steep discount. This trend highlights the difficulties new entrants face in a market dominated by a few key players.
There are no details on how much RIM intends to discount the PlayBook by, and we suspect it won’t be reduced to the $99 that HP did for the HP TouchPad. However, offering rebates could make the PlayBook more attractive to potential buyers who are looking for a more affordable alternative to the iPad.
Potential Impact of Price Cuts
Price cuts can have a significant impact on consumer interest and sales. When HP reduced the price of the TouchPad to $99, it sparked a buying frenzy, and the device quickly sold out. While RIM may not go as low as $99, even a modest price reduction could help boost sales and clear out inventory. This strategy could also help RIM gain some market share and visibility in a highly competitive market.
Moreover, price cuts can also serve as a way to attract new customers who may be hesitant to invest in a higher-priced device. By lowering the entry barrier, RIM could potentially expand its user base and create more opportunities for future sales of accessories and services.
In addition to price cuts, RIM could consider other strategies to enhance the appeal of the PlayBook. For example, bundling the tablet with popular apps or offering exclusive content could make it more attractive to consumers. Improving the device’s software and user experience could also help differentiate it from competitors.
Source BGR
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