RIM Weighed Down by Tablet ‘Albatross’ in IPad-Ruled World
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Research In Motion Ltd.’s commitment to keep battling Apple Inc.’s iPad even as demand for its BlackBerry PlayBook slumps means the company will likely have to sell the tablet at a loss. Its strategy depends on it.
The company said on Dec. 2 that it would book $485 million in pretax charges to write down the value of its PlayBook inventory and that it doesn’t expect to meet its full-year earnings target. Shipments have fallen for two consecutive quarters and are now about 1 percent of those of the iPad, forcing RIM to cut the price by $300, or more than half, making it unprofitable.