RIM's troubles continue: BlackBerry Playbook costing company $485 million

RIM logoRIM can’t catch a break. Not only is the company coping with dismal PlayBook tablet sales, it’s also taking a near half-billion-dollar hit for sitting inventory that must now be sold at rock-bottom prices.

RIM announced on Friday that the company wouldn’t be meeting its financial targets for the year, primarily due to the unsuccessful performance of the BlackBerry PlayBook tablet. It pushed 150,000 units this quarter, compared with 250,000 last quarter, and 500,000 in the first quarter of the year.

The company is offering the troubled tablet for dramatically discounted prices through Dec. 3. Prices were slashed $300 across the product line-up, and quickly sold out at retailers like Best Buy by last week’s Black Friday. Nonetheless, RIM announced today that it’s recognizing “a pre-tax provision in the third quarter of fiscal 2012 of approximately $485 million, $360 million after tax, related to its inventory valuation of BlackBerry PlayBook tablets.”

Quick to note an “increase in demand,” RIM’s co-CEO Mike Lazaridis offered up continued support for the tablet.

“RIM is committed to the BlackBerry PlayBook and believes the tablet market is still in its infancy,” he said in today’s press release. “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.”

RIM’s BlackBerry PlayBook jumped on the tablet trend a bit prematurely. The device had a number of software issues right out of the gate, most notably problems with Flash content. It garnered lackluster reviews that led to a limited distribution network as carriers like Sprint opted not to sell the device.

And no, RIM’s PR troubles don’t end with substantial loss warnings. In a microcosmic example of adding insult to injury, a couple of its employees just sparked an international incident.

A pair of RIM employees on a non-stop, Beijing-bound flight knocked back a few too many drinks and started misbehaving so badly that the plane turned around and dropped them off in Vancouver. Due to industry regulations regarding the number of hours a flight staff can work, the flight, which originated in Montreal, was grounded for 18 hours and its 314 passengers were put up in hotels for the night.

two RIM employees were arrested for their behavior, and have to pay Air Canada a fine of $35,878 each. They’re also on one-year probation from flying Air Canada, and are suspended from RIM pending further investigation.

Source: Ars Technica

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

 
The NVIDIA GeForce GTX 1180 will be Turing-based with a 12nm FinFET die shrink
 
This only works on posts made by profiles that are public
 
 
The device will be standalone and based on a Qualcomm chipset
 
Apple plans on offering a cheaper smart speaker that will be priced at $199
 
Chrome will adopt a new approach to indicating site security
 
Data shows they are leading smartphone sale worldwide
 
Is this an error or it is really happening?
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
  12345
6789101112
13141516171819
20212223242526
2728293031  




Poll

Do you use microSD card with your phone?
or leave your own version in comments (10)