Analyst Invites You to a Good, Old-Fashioned PlayBook Burning

March 24, 2011 at 3:34 am PT

Now that Research in Motion has told us how much we’ll have to pay for a BlackBerry PlayBook tablet and when we’ll be able to do so, it’s got to convince us why we should bother. And that may prove more difficult than imagined, buzz around Motorola’s Xoom being what it is and demand for the iPad 2 being what it is; consumers are still queuing up to buy the latest iteration of Apple’s tablet, and ship times for purchases made online are hovering at 4-5 weeks.

In a new research note, Stifel analyst Doug Reid argues that RIM has hyped the PlayBook well beyond the earnings-per-share contribution the laggard tablet might potentially make. “Despite minor hardware improvements, the PlayBook with WiFi remains less competitive relative to both iPad 2 and Xoom,” Reid writes, before reciting the same list of perceived flaws that bother other critics. “First, PlayBook’s lack of basic e-mail and calendar functionality (standalone) immediately gates the device’s addressable market to BlackBerry users, a market of only 55 million,” he explains. Second, the PlayBook’s app ecosystem is piddling at best, thanks to a lousy developer experience (which, to be fair, RIM is working to improve). According to Reid’s estimates, PlayBook will have fewer than 100 apps at launch–assuming it doesn’t debut with support for Android apps. Then there’s its screen size. Reid beleives that consumers familiar with the iPad’s 9.7-inch screen will likely view the PlayBook’s smaller 7-inch screen as a deficit.

And finally, the most troubling reason of all: the PlayBook’s ship date. It arrives at market after both the iPad 2–the market-leading tablet’s latest iteration–and the Xoom–which is said to be the first truly comparable competitor to it. Worse, it risks being lost in the flood of tablets launching over the next few months.

Late to market with a first generation tablet and an inferior value proposition. That seems to be RIM’s predicament today. Though who knows. Perhaps there’s some hidden competitive advantage here that’s being overlooked, or one that we haven’t yet seen.

Tagged with: Apple, digital, Doug Reid, hardware, innovation, iPad, iPad 2, John Paczkowski, Motorola, PlayBook, Research In Motion, RIM, Stifel Nicolaus, Xoom

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Anonymous

“Perhaps there’s some hidden competitive advantage here that’s being overlooked, or one that we haven’t yet seen.”

Trouble is, RIM have been hyping this thing for 7 months by launch, to try to keep the market open. It’s very unlikely that they’ve held anything back. Or anything +ve, anyway.
Anonymous

Same drivel, same unknown “analysts”.

Playbook big secret is BES support for security / management. That alone will get it solid interest from enterprise which is the primary market. RIM knows Apple has the consumer advantage so why focus on it. Yes Playbook is shown to run entertainment but thus far has mostly been to show the device power.

If RIM is “late” I guess HP should pretty much just shutdown the WebOS division and call it a day. While yes Apple launched iPad 2 it doesn’t really seem to be available either is it. 4-5 weeks which interesting is right around when Playbook will ship.

Apple jumped the gun to get out and were short of stock, they are now dealing with supply chain constraints so stop acting like they have no issues. How many iPad 2 were sold again? Seems they’d be crowing about that by now. I’m guessing they shipped with less then 500,000 devices and have another allotment for international release. Low stock also drives up demand and “hype”. Apple excels at that.

Screen size is a personal perspevtive. It really demands on expected use and having both iPad 1 & 2, I find the device heavy and I rarely use it. Nice for brief moments of content comsumption but hardly a device used daily. Which is how tablets it general might be viewed.

There will be more then 100 Apps at launch for the fact RIM was giving away a Playbook for App development. If Android compatiblity comes the App catalog expands quickly. You also neglect the millions of Flash based apps that are now usable.

Blackberry Bridge is a BES / BIS feature and provides enterprise security for corporate data. Obviously if you don’t use either you won’t need to worry about it. Web based email is by far the way most consumers use email now. Do you really think there will not be a email client soon? I love how Apple and others can not include functionality but RIM is held to some higher standard and railed for it.

If 5% of RIM’s Blackberry population buy a Playbook RIM will be off to a good start, any consumer interest is just a bonus. Funny that is exactly how their smartphone market started.

We’ll see later Thursday if RIM is still selling devices. They might not be in the USA but growth is growth, profit is profit.
http://pulse.yahoo.com/_PMIIPASM7SXJXKZ4VWFEQZQL3U Hillshire

“Playbook big secret is BES support for security / management.”

At a very high price (for the servers, software, and service plus devices). I’m sure some corps, particularly those already heavily in RIM devices, will find that appealing. But many other corps will be quite willing to settle for “good enough” security at a lower cost. So, I would qualify that as not a secret and only an advantage in signing up corps that have already bought into RIM.

“You also neglect the millions of Flash based apps that are now usable.”

After seeing Adobe’s latest beta release of Flash for mobile devices, I personally would not say that Flash is usable. To others, perhaps usable in the sense that an ox cart is usable for transporting goods across continents. Flash will improve over time but the rate of that improvement has been incredibly slow so far.

“If Android compatiblity comes the App catalog expands quickly.”

Last article I read pegged Android table apps at around 100, so that’s not a huge deal so far. Also, I am very interested to see how well Android apps work on other devices. Particularly with the differences in hardware and screen sizes. I certainly wouldn’t count it as an advantage until I saw that they consistently worked at a high level.

At any rate, I just don’t see the point of bragging about the PlayBook yet. It hasn’t been released yet. Let’s see how it works in the real world before declaring it’s saint hood.

Also, if you are looking for growth in RIM, I do see growth in taking away share from Nokia during this year of dead end products as they switch to Windows 7 Phones. RIM could make a real killing there.
http://twitter.com/slowbutlearning Billy Joe

MMI Xoom has better resolution for viewing rich content movie.
now that aapl ipad will be out for 6 weeks. MMI will flourish
Plus two up grades last week and 2 yesterday .
My bet is on MMI android Xoom and the Number one selling android cell.
new leader is cell sales
http://www.marketingtactics.com/ davebarnes

@John,
“have less than 100 apps”
should be
have FEWER than 100 apps
http://peachin.blogspot.com peachin

RIM has been on a death watch since their conspiracy with Verizon to release Storm 1. It was product released (and flawed from the beginning) “out of fear” of Apple. They are looking at a position next to Gateway – in the cemetery.
http://peachin.blogspot.com peachin

In actuality it is “More Than”

Look: Amazon Android App Store – opened a few days ago
Anonymous

is your middle name Strunk & White, Dave?
RobertSeattle

When I got my iPad 5 months ago, having an Email and Calendar program wasn’t important part of my decision process… but it would be now. The Email and Calendar App that comes with an iPad isn’t incredibly robust, but very useful none the less.
Anonymous

After using an Iphone 3GS for one year, I sold it on Craigslist and bought my first Blackberry. I’m not looking back. Blackberry IMO is a superior system compared to the rest.
I have every bit of confidence that BB will release the Playbook when it’s ready. A far cry from Apple releasing the Ipad when it has severe limitations. I use Mac computers, but Apple has their share of problems too. At least with a BB phone I can make calls.
I’m glad RIMM waited to release the Playbook. I’m confident that it will be a superior device. I like the portablilty. I think people are underestimating the demand for 7″ tablets.
I’ll be buying a 32gb Playbook on opening day.
http://www.marketingtactics.com/ davebarnes

My middle name is Pedantic.
But, my friends say it is: Anal Retentive.
Anonymous

Really 55 million people the might buy an playbook? and that’s a negative?

Let me guess, this guy owns Apple and is shorting RIM.

BTW, The IPAD should be call the “Blood PAD”, for all the slave labor and killings being done for Apple. Don’t believe me just Google and how it’s made.

The playbook is made in Taiwan, a place with human rights!
http://twitter.com/OzOzdil Ozgur Ozdil

what an idiot lol

Analyst Invites You to a Good, Old-Fashioned PlayBook Burning

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