Research in Motion was so confident it would sell millions of PlayBooks this year, it discounted the first 500,000 to wireless carriers.
The idea, according to BGR, is that when carriers saw that RIM was selling them at less than full margin, they would apply further discounts.The first batch would sell out quickly, and carriers would place orders for millions more.
It didn't work out that way. According to the report, the 500,000 PlayBooks that RIM shipped last quarter aren't sold yet, and further orders just aren't coming in yet. Because of the subsidies, RIM hasn't made any money on the PlayBook yet.
Worse, RIM apparently waited until the last minute to tell carriers about the most glaring flaw in the PlayBook -- you can't use it to get email from a BlackBerry-managed email system unless you also have a BlackBerry phone, and connect the PlayBook to the phone wirelessly. Apparently, carriers were expecting the PlayBook to be a giant BlackBerry and were shocked at the omission.
See also: The Real Reason There Was No Email On The PlayBook.
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See Also:
- RIM's Co-CEOs Have "Titanic" Arguments In Front Of Employees
- Death To The QR Code
- Amazon Put In An Order For 1.2 Million Tablets, More Than Any Other Company Besides Apple
RIM Isn't Making Any Money On The PlayBook (RIMM)
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