Happy Labor Day! Now Go Get RIM's (RIMM) PlayBook
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Price: $82.80 +3.51%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.3%
Revenue Growth %: +0.8%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.3%
Revenue Growth %: +0.8%
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According to several sources Friday morning, Best Buy (NYSE: BBY) is evidently slashing prices on its Research In Motion (Nasdaq: RIMM) PlayBook inventory over the Labor Day weekend.
Normally selling for $599.99 to $699.99 for its 32- and 64-GB models, respectively, those prices will drop to $549.99 for either, promising big savings on the 64-GB version and a more modest discount on the 32-GB model. Best Buy is also cutting the price of the 16-GB version by $50 to $449.99.
Launched in April, RIM's PlayBook never really took off. Reports in mid-August suggested carrier Sprint (NYSE: S) dropped the device due to poor sales. RIM also recalled about 1,000 units for an OS-related issue.
Sprint also said it won't carry the 4G version of the PlayBook, and no other carrier has committed to the device as of yet.
But the price drop may increase demand somewhat. Hewlett-Packard (NYSE: HPQ) last week said it was dropping the price of its TouchPad to $99 as it looked to exit the business. The fire sale price drew great attention, with lines forming outside of many Best Buy stores last Sunday on the news. In response, for some reason, Hewlett-Packard said it will manufacture another limited quantity of the tablet, possibly to clear up excess inventory or fulfill supplier contracts. It certainly isn't a move to drive profit, as costs to manufacture the device are north of $150 per.
It isn't clear at this time whether the new price of the RIM tablet will stick; Best Buy just said that price change will be in effect over the weekend. Maybe stronger sales will help make it permanent?
RIM shares are 0.5 percent stronger Friday morning.
Normally selling for $599.99 to $699.99 for its 32- and 64-GB models, respectively, those prices will drop to $549.99 for either, promising big savings on the 64-GB version and a more modest discount on the 32-GB model. Best Buy is also cutting the price of the 16-GB version by $50 to $449.99.
Launched in April, RIM's PlayBook never really took off. Reports in mid-August suggested carrier Sprint (NYSE: S) dropped the device due to poor sales. RIM also recalled about 1,000 units for an OS-related issue.
Sprint also said it won't carry the 4G version of the PlayBook, and no other carrier has committed to the device as of yet.
But the price drop may increase demand somewhat. Hewlett-Packard (NYSE: HPQ) last week said it was dropping the price of its TouchPad to $99 as it looked to exit the business. The fire sale price drew great attention, with lines forming outside of many Best Buy stores last Sunday on the news. In response, for some reason, Hewlett-Packard said it will manufacture another limited quantity of the tablet, possibly to clear up excess inventory or fulfill supplier contracts. It certainly isn't a move to drive profit, as costs to manufacture the device are north of $150 per.
It isn't clear at this time whether the new price of the RIM tablet will stick; Best Buy just said that price change will be in effect over the weekend. Maybe stronger sales will help make it permanent?
RIM shares are 0.5 percent stronger Friday morning.
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