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RIM reportedly bails on PlayBook, considers exiting tablet market

66 points| sunir | 14 years ago |bgr.com

59 comments

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[+] Cherian_Abraham|14 years ago|reply
If Amazon Fire succeeds in cannibalizing sales in the low cost tablet range (Fire being a wrapper for all of Amazon’s digital media products in the cloud), Playbook stands to offer nothing other than the device. RIM seems like a company coming more and more across as a company that has no pragmatic leadership or vision. It is both unable to draw a bead on where the market is going, or its competitor initiatives, and is increasingly made irrelevant in the smartphone market.
[+] IgorPartola|14 years ago|reply
I don't work and have never worked for RIM. However, from what I've read of it lately, I find it fascinating. From what I can tell, what happened was:

* RIM was a brilliant company with a ton of talented engineers and a few managers. RIM released cool products and became successful.

* RIM instituted a promotion policy based largely on seniority. This ticked off a lot of talented engineers and over the years they started exiting. At the same time it attracted the kind of middle manager who likes this kind of policy.

* RIM became bloated with management (two CEOs? two CEOs!), lost the last shreds of its talented engineers and started spinning out of control. RIM is large, and like any large spinning object, it is hard to tell that it's spinning if you are standing on it. The management cannot tell that they are out of control.

[+] bstar77|14 years ago|reply
There have been two recent developments that lead me to believe RIM definitely needs to get out of this market.

The (obvious) first is the Kindle Fire... This device will succeed and will cannibalize sales from tablets not called iPad (and maybe the iPad too). Plus the Fire is virtually the same hardware as the playbook at $200 with a thriving ecosystem.

The second is the state of Android on the Playbook. It just came to light (through some very damning articles) that virtually no android apps will work on this device. The idea was gimmicky and the execution on that idea seems to be even worse. There's no android utopia here.

I hate to say it, but RIM has no other option than to sit and watch. Maybe they can maintain a decent niche in the corporate world, maybe not. The reality is that they are not in control of their destiny. Their survival depends entirely on what their competitors choose to do.

[+] technoslut|14 years ago|reply
>RIM definitely needs to get out of this market

If RIM gets out of this market I think they're done. The next generation is going to be about ecosystems. Apple, Amazon, Microsoft and Google are all offering seamless access to their data, through their cloud offerings, across a wide range of devices. More than ever people are going to be using a single brand or OS just because it is easier, which is what post-pc devices are all about. There won't be many that will have a RIM phone and have an iPad or Amazon tablet just because data management will be a pain.

[+] joeguilmette|14 years ago|reply
It's almost sad watching RIM flounder and thrash around so sadly. It's kind of like watching a coworker slowly succumb to dementia.

Although, in an odd way that clashes with the metaphor, it is kind of enjoyable watching them crash and burn.

[+] cryptoz|14 years ago|reply
> it is kind of enjoyable watching them crash and burn.

I have very much enjoyed watching their fall...it's a strong case of schadenfreude. For some reason, their refusal or inability to innovate has me giddy. I suppose they represent (to me) a large corporation run by old guys who don't "get it" - and they're failing. Microsoft is in the same boat, but it's tougher (only slightly) to argue that they are falling.

I'm halfway through this bag of metaphorical popcorn, I hope I don't run out before RIM dies completely.

[+] lambersley|14 years ago|reply
>enjoyable watching them crash and burn.

As a Canadian, technology enthusiast and former RIM employee, it actually saddens me. A company with so much potential, so much talent quickly fading into the mist.

I wouldn't mind seeing Jim B removed and Mike L as Chairman of the Board. The shake-up they desparately need must occur at the top level. In the most recent layoffs, I've had friends and former colleagues in mid-management and lower positions let go. I'm not sure who thought that was an effective strategy to turn the company around. FAIL!

[+] technoslut|14 years ago|reply
>it is kind of enjoyable watching them crash and burn

I always temper that emotion with the knowledge that many are going to lose their jobs because of two incompetent CEOs.

[+] astrodust|14 years ago|reply
Maybe they'll go as whack crazy as Corel and buy a stadium or a football team, then forget about making phones altogether!
[+] kin|14 years ago|reply
What boggles my mind is how excited about RIM products their CEO is in public announcements. He did it with the Playbook but even worse he's done in every time in the past, most notably, with the Torch. He EXPECTED 1 million + sales opening weekend. Really? Launching on a single carrier (AT&T) sharing with iPhone and Android devices? And then he was DISAPPOINTED that they only sold 100,000 units opening weekend. Which, actually, I think he was lucky to get.
[+] protomyth|14 years ago|reply
I am still amazed a company known for e-mail / communications and loved for their keyboards decided to copy the "piece of glass" crowd. It just seems like the play would have been something more akin to the Psion Series 5 instead of the iPhone / iPad. Concentrating on communications (evolution from e-mail) and collaboration would have been a better play and more in their abilities.
[+] cpeterso|14 years ago|reply
Or that they would produce a "business tablet" that can't actually do email or calendar/contacts PIM without tethering to a BlackBerry. Those features are what RIM was famous for!
[+] jarek|14 years ago|reply
Jesus Christ yes. I want a keyboard on my phone. Unfortunately RIM's software sucks, and everyone else's keyboards suck, so I'll be settling for a piece of glass.
[+] davidandgoliath|14 years ago|reply
Might want to update thread's title in lieu of RIM's response: "strictly fiction".
[+] jmjerlecki|14 years ago|reply
Updated:

RIM calls PlayBook discontinuation ‘pure fiction’

http://www.bgr.com/2011/09/29/rim-calls-playbook-discontinua...

I still call BS. They should become a hardware only company.

[+] raganwald|14 years ago|reply
I confess this is an Ad Hominem Circumstantial, but what would you say if you and your channel partners were sitting on a mound of unsold inventory? You’d talk up the future of the device while discounting the price in the hopes of quickly clearing the channel without alienating the people you need to sell your phones. Meanwhile you’d cut production off and when just about everything is sold, then you officially exit the market.

This doesn’t mean that they are existing the market, just that denying the rumour doesn’t really prove they’re still 100% behind it.

[+] vsl2|14 years ago|reply
There's so much mainstream consumption based not only on the quality/usefulness of a company's products, but also on the public perception of that company. Just think about Apple and its ability to turn everything it touches to gold. It becomes a self-reinforcing cycle unless something drastic happens to shift the momentum in the other direction (e.g. Netflix now suddenly is starting to go in the other direction after their recent poorly-received decisions).

Given RIM's downward momentum in the past couple of years, I don't think its a surprise to see its latest products do poorly. In the tablet industry, they needed something that was revolutionary or at least something very very good in order to have a fighting chance. Releasing something mediocre that lacked some basic features (native email) that Blackberries are based upon portended doom. The $500 price point guaranteed it.

Look at the recent launch of RIM's Torch 9850. Received lukewarm reviews at best (CNN destroys it) amid lots of hype from RIM. Can you guess where this is headed?

I don't really know what RIM can do to reverse their continuing downfall, but I think it starts with acknowledging that their proprietary OS is not going to work and get on the Android bandwagon. Then hope to get lucky with a blockbuster product.

At least they still have most of Corporate America...for now.

[+] martythemaniak|14 years ago|reply
I really to believe the answer to RIM's troubles begins with Jon Rubinstein:

http://martin.drashkov.com/2011/09/how-to-save-rim.html

[+] alanh|14 years ago|reply
I bought a $99 Touchpad.

It is utter shit in every way except how nice a screenshot touting the “cards interface” looks. No, not just sluggish hardware. Buggy multitouch. Crap copy/paste. Garbage browser with rendering bugs aplenty (on popular websites, even). Boring, Linux-like system icons. Each "panel" of system settings launches a sluggish app. No Dropbox or 1Password apps (cheap shot, but ecosystem matters).

[+] r00fus|14 years ago|reply
Does Ruby know how to develop an ecosystem (and fast)? I'm not sure Palm's progress from 2008 until acquisition by HP really counts as a win.
[+] flocial|14 years ago|reply
They basically outsourced everything right? Apple's iPhone was the result of scaling down what was supposed to be the original iPad (not to mention the Newton). Amazon's commitment to books and server technology carried over nicely into the Kindle. I think a large part of the first mover advantage myth comes from the unquantifiable drive and passion that goes into thinking hard about a product before a first prototype launches. These companies have a complete vision that they whittle down and polish to get that first product out. They have a clear path for the future and the flexibility to adjust because they've got a head start overcoming obstacles.

I just wonder what their main "vision" was. Seems like they suffered the same paralysis as Motorola and Nokia. "We make mobile phones" mentality. Did they just assume that the future was ever thinner profit margins compensated by sales volume? That people would gladly sacrifice added functionality for added battery life and the convenience of hardware buttons?

[+] wlesieutre|14 years ago|reply
I think their vision used to be "Be good at email and good for businesspeople"

At some point, they said "Hey, these touchscreen things are doing pretty well, let's get into the consumer market." But they had no idea how, and they've been releasing weak phones on a weak software ecosystem ever since.

On the other hand, if they'd stayed in their original market, I don't think it would work out much better. Doing enterprise features nicely is great, and could sell a lot of devices. But Apple's "touchscreen on a little computer" model is flexible, and all it would take is an enterprise focused software update from Apple or a few well written apps from a third party.

Competing against Apple's vision and manufacturing skill is going to be difficult to do, and in the long run I don't see RIM being one of the companies that manages to do it.

[+] click170|14 years ago|reply
As a Canadian, it's difficult to watch them fail so flagrantly, but they haven't really done enough to succeed so the company deserves it IMO (even if the low level employees don't).

I do like that there has been talk of their next generation of QNX devices supporting Android applications, but that seems like but one step in the right direction, after having taken half a dozen steps in the wrong direction.

[+] smackfu|14 years ago|reply
What is the difference between the Playbook and the Kindle Fire, except $300 and a camera and 8 GB of flash?
[+] raganwald|14 years ago|reply
For most consumers, the Fire is more functional: It is a portal to content they want and it runs apps available everywhere.
[+] kupo|14 years ago|reply
The Playbook is more business orientated (secure QNX OS) but is also on sale to consumers. The kindle is purely a consumer product.
[+] staktrace|14 years ago|reply
One is shipping. The other isn't.
[+] metageek|14 years ago|reply
$100, actually--BestBuy is now selling the 16GB Playbook for $299.
[+] bigohms|14 years ago|reply
No associative strong content play means nothing to do with that shiny new piece of glass. Take the and pivot the entire product just to corporate.