Unsold PlayBooks Killing RIM in Q3

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Ahead of its Dec. 15 earnings report, RIM has announced that it will be “recording a pre-tax provision” of $485 million due to unsold inventory of its BlackBerry PlayBook tablet. 

Basically, RIM is wiping nearly half a billion dollars off the value of its inventory because it can’t recoup it in sales. The company claims to have “a high level” of unsold PlayBooks in stock, though RIM intends to continue an aggressive promotional push to sell more tablets. 

Reportedly, 150,000 PlayBooks were shipped to retailers in 3Q11, though RIM claims that the number of sales to consumers during the third quarter is higher still, citing recent discounts on the device as successful. On Black Friday the tablet received a price cut to $200, selling out at all Best Buy locations, as well as online. RIM recently began offering employees PlayBooks, starting at $99 for the 16GB, though this fire sale is currently only available to RIM workers. 

Despite this large writeoff, RIM has remained utterly faithful to its tablet, reiterating its commitment to the PlayBook, believing the tablet market is still in its “infancy.” 

Source: The Verge

 

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