Analysts review RIM’s PlayBook
Posted Sep 29, 2010 03:15:44 PM.
This article is more than 5 years old.
The new tablet computer from Research in Motion is entering an already crowded market. Besides Apple’s iPad, the Samsung Galaxy Tab and Dell Streak are also providing competition for RIM’s new device.
Still, analysts are expecting solid results from the Waterloo-based BlackBerry-maker.
Preliminary estimates suggest that RIM will sell six million PlayBooks in its first year, which equates to about 13% of the tablet market in 2011.
Mike Abramsky of RBC Capital Markets says that translates into revenues of about $3-billion and earnings per share of RIM stock of 50 cents. Other analysts recommend a more targeted marketing approach for the PlayBook while some believe interest in the device will come primarily from the enterprise, or business, market. T. Michael Walkley of Canaccord Genuity says demand for the iPad remains strong and he expects Apple to maintain a dominant market and value share in the tablet arena.
While Apple no doubt holds an edge because it was first to market, tech analyst Carmi Levy believes there’s also an advantage to entering the market later.
“The company (RIM) made it very clear that they want the device (the PlayBook) to be right, they don’t want it to be glitchy and they don’t want to rush it,” Levy points out in an interview with 570 News. “So they’re willing to give up the 2010 holiday season and its big consumer rush in order to bring a device to market that does everything they promised it would do.”
Both the iPad and the PlayBook offer similar processing speeds to a home PC of several years ago (1 GHz). Levy says that means both devices will work quickly, browse efficiently and handle photo editing without waiting for the device to “think” before finishing its work.
But if it’s one place the PlayBook stands out, it’s in size. Levy says the 7-inch PlayBook screen will make it more likely for owners to use it as a mobile device, as opposed to the 10-inch iPad screen that owners tend to keep in a briefcase until arriving at a destination.
“A 10-inch device tends to be something that’s used more when you get somewhere, not when you’re actually on the move,” Levy says.
RIM’s PlayBook is expected to hit stores in early 2011 while Apple’s next iPad could be on the market as early as June of 2011.
