RIM's PlayBook manufacturer cutting production lines as sales slump

RIM logoAfter sales of Research in Motion's PlayBook tablet slumped last quarter, Quanta Computer has laid off about 1,000 workers working on production lines setup specifically for the device, according to a new report.

Industry sources told DigiTimes that the manufacturer is cutting back production lines for the PlayBook at a factory in Taiwan, offering preferential compensation to the roughly 1,000 workers who have been let go. Quanta confirmed the layoffs, but declined to provide further details.

Sources noted that RIM had requested the lines be located in Taiwan in order to avoid the appearance of mainland Chinese knockoffs. "Quanta set up production lines at the factory in northern Taiwan specifically for PlayBook and began production in three shifts with a workforce of more than 2,000 staff," the report noted sources as saying.

Insiders suggested that Quanta had decided to cut its losses, despite the fact that RIM has yet to indicate plans to withdraw from the tablet market. They described RIM's tablet orders as "drastically shrinking."

An earlier report from the publication in April suggested that RIM was "internally optimistic" about the PlayBook and was looking to produce 800,000 units each month in the second half of the year. But, the Canadian smartphone maker revealed last week that it had shipped just 200,000 PlayBooks in the most recent quarter, down from 500,000 in the first quarter of fiscal 2012. Analysts had expected shipments of between 400,000 and 600,000 tablets.

In August, Sprint revealed that it had reached a mutual decision with RIM to cancel plans to release a 4G WiMax version of the PlayBook.

 

RIM itself is undertaking its own downsizing program. In July, the company announced plans to cut 2,000 jobs, bringing its total global workforce to roughly 17,000 people.

Wall Street has a cautious view of the company after its most recent weak quarter. Analyst Brian White of Ticonderoga Securities said last week that the PlayBook appears set to be the "next casualty of iPad's tablet dominance." He also predicted Apple's iPhone 5 will "steamroll" BlackBerry 7 offerings from the handset maker.

Shares of RIM are down more than 60 percent since the beginning of the year.

Source: AppleInsider

Tags: RIM, tablets

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
 
Highlights of the new feature update include a tweaked interface with Fluent Design elements
 
It’s now open to third-party developers and designed for smart home devices
 
Prices start at $1499 for the 13.5-inch model and $2499 for the 15-inch model
 
Users claim the Start menu isn’t working after the upgrade
 
It will release its first all-purpose AI chips by the end of 2017
 
Android 8.1 Oreo arriving on Pixel phones "in the coming weeks"
 
The Snapdragon 636 also comes with support for modern ultra-wide FHD+ displays
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
1234567
891011121314
15161718192021
22232425262728
293031    




Poll

Do you use microSD card with your phone?
or leave your own version in comments (4)