RIM misses Q3 guidance on slow PlayBook sales

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From RIM’s advisory this morning:

As previously disclosed, RIM has a high level of BlackBerry PlayBook inventory. The Company now believes that an increase in promotional activity is required to drive sell-through to end customers. This is due to several factors, including recent shifts in the competitive dynamics of the tablet market and a delay in the release of the PlayBook OS 2.0 software. As a result, RIM will record a provision that reflects the current market environment and allows it to expand upon the aggressive level of promotional activity recently employed by the Company in order to drive PlayBook adoption around the world.

“RIM is committed to the BlackBerry PlayBook and believes the tablet market is still in its infancy. Although a number of factors have led to the need for an inventory provision in the third quarter, we believe the PlayBook, which will be further enhanced with the upcoming PlayBook OS 2.0 software, is a compelling tablet for consumers that also offers unique security and manageability features for the enterprise,” said Mike Lazaridis, Co-CEO at Research In Motion. “Early results from recent PlayBook promotions indicate a significant increase in demand across most channels. We look forward to continuing to grow the installed base of PlayBook users and to attracting more and more developers to expand the volume of applications, content and services that leverage the power of the industry leading QNX-based platform.”

In other words: The PlayBook sucks balls and the only way we can get rid of the warehouse full of product is to give it away.


  • http://crackberry.com/ CrackBerry Bla1ze

    I would like to interject that the PlayBook doesn’t suck balls.. but rather what RIM has done with the PlayBook thus far is really the larger portion of the ball sucking happening.

    • http://twitter.com/STRIPBLUNTS ANDRE SALAZAR

      If RIM is “really” a billion-dollar company, they must’ve known the PlayBook would be compared to iPad & iPad 2!! Making a tablet that has NO standard RIM capabilities + has NO apps or reasonable function, makes RIM & it’s PB’s buyers look like complete fools!! They sold it for $500, when its less than half the iPad’s size & you can clearly see that at any Best Buy. Plus, they paid too much for flash components & screens, which is why they’re in this position now! They’r only doing the fire-sale because they don’t want retailers & ODM’s to sue them for breach of contract or just tell them to give them their money back, while returning all unsold inventory. They haven’t even come close to selling 500,000 units, yet you keep blogging that every things fine & the BB-kool-aid-drinkers should keep faith!?! DOUBLE-FAIL!!

      • http://crackberry.com/ CrackBerry Bla1ze

        You sound upset? Are you upset? Also, not sure how you got ‘you keep blogging everythings fine’ from my comments — when I basically said RIM has their head up their own ass when it comes to the PlayBook. But hey, whatever — you’re entitled to your own level of internet bitterness, I won’t fault you for it. Though, you really should get a handle on that anger, it’s not healthy. :)

        • http://twitter.com/Moeskido Moeskido

          I know I’d be upset if I was a Canadian who once had good reason to feel proud about that company.

          • http://crackberry.com/ CrackBerry Bla1ze

            Indeed.. but a lot of people tend to forget a few things about RIM as a company. BlackBerry.. is a product of RIM. How many other acquisitions has RIM made in the past few years? While I don’t have a number off the top of my head, there is now more to RIM then just BlackBerry devices.

            Their acquisition of QNX alone set them up to be open in other areas and while the BlackBerry smartphone department is clearly having some issues right now –  that doesn’t mean other sectors of RIM are having the same issues.

            The QNX department is doing just fine and proceeding through the automotive technology industry.

            RIM has placed themselves in a position now where one has to look beyond their smartphone market and look at other segments as well.

            RIM is the company, BlackBerry is ONE of their products — it is not their ONLY product.

          • http://twitter.com/Moeskido Moeskido

            I admire your steadfast optimism and use of all-caps for emphasis.

            Whatever RIM’s current portfolio contains, it’s all still being run by two individuals who’ve demonstrated great difficulty understanding post-2007 changes in consumer technology.

    • His Shadow

      It is nearly conclusive evidence that the experience is paramount. I have relatives that are in possession of Playbooks, and love them, but don’t have much to be happy with regarding updates and apps.

  • http://mobilesyncbrowser.com VaughnSC

    Wasn’t this guidance RIMM had already lowered at some point, previously?
    Second, I note from the wording that ‘Enterprise use’ has taken a back seat to Consumer adoption, an about face from the PlayBook’s early positioning.

    • http://twitter.com/STRIPBLUNTS ANDRE SALAZAR

      What I don’t understand is how NO ONE notices that they’ve adjusted their “quarterly” earnings lower, yet haven’t adjusted their overall “annual” earnings-estimates, which are clearly going to miss too! They’ve missed “2″ quarters in a row! The new phones are clearly NOT selling.

  • http://twitter.com/leicaman leicaman

    Desperation and cluelessness go hand in hand at RIM. They’ll say anything to get through this quarter and into the next. Once they get there, they’ll figure out which landfill in which to dump their tablets.

  • http://www.theuniversalsteve.com Anonymous

    “The Company now believes that an increase in promotional activity is required to drive sell-through to end customers.”

    Right. It’s all Marketing’s fault.

    • http://mangochut.net/ mangochutney

      They probably think they need to ramp it up to Apple’s levels.

  • http://mangochut.net/ mangochutney

    The delusion is strong with RIM. I honestly ask myself if those inside the company still believe this crap.