BlackBerry PlayBook costing RIM R3.88 billion

Research in Motion (RIM) announced that they wouldn’t be meeting their financial targets, largely due to the weak performance of the BlackBerry PlayBook tablet PC.

The PlayBook sold only 150,000 units in Q3 2011, down from 250,000 units in the previous quarter and 500,000 units in the first quarter of the year.

PlayBook devices sold out at retailers last week thanks to aggressive pricing which saw around a $300 (R2,401.50) discount off the entire product line-up.

Despite this, the company announced “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.”

RIM co-CEO Mike Lazaridis was quick to support the unsuccessful tablet stating, “RIM is committed to the BlackBerry PlayBook and believes the tablet market is still in its infancy. 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.”

Read the full story at: Ars Technica.

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BlackBerry PlayBook costing RIM R3.88 billion