RIM Announces Playbook Tablet, Still Playing Defense

RIM has finally announced that its new tablet will go on sale in early 2011.  More importantly, the 7″ ‘PlayBook’ (formerly known as the ‘Blackpad’) will support Adobe Flash, finally giving me the hope that we’ll find out if Apple really keeps flash off of its devices for battery issues, or if Joaoaerbs just wants to keep web applets out of his iTunes/GameCenter ecosystem.

The initial version will have Bluetooth and Wi-Fi connections but will only be able to connect to cellular networks through a BlackBerry smartphone. RIM said it intends to offer 3G and 4G ready tablets “in the future.”

The PlayBook will run on an all-new operating system built by QNX Software Systems, which makes software used to run everything from cars to nuclear reactors. RIM bought QNX earlier this year, and has been working to adapt the software for mobile phones.

The move means RIM will have to juggle two distinct operating systems. The company announced its BlackBerry 6 operating system for smartphones in April, and rolled out the first handset running on it, the BlackBerry Torch, last month.

WSJ

Connectivity through your existing Blackberry phone sounds like a great idea from a data-consumer’s point of view, but they’re certainly not going to gain market share on Apple with a strategy that only appeals to current Blackberry users.  It should also be noted that, like most Blackberry products, the PlayBook seems to be geared specifically to enterprise.  They’re likely not trying pry loose Apple’s stranglehold over the consumer market just yet.  So despite demonstrations of video, photo, and e-reader uses, as well as its ‘play’ful name, I wouldn’t expect users to be loading it with games any time soon.

Although, if they so wish, and if the browser is strong enough, Blackberry fans could get their fill of gaming through the web since, again, the PlayBook will support flash.  The only difference is they’ll be getting that content for free, whereas Apple’s stonewalling of Adobe’s popular technology has afforded them the unique ability to charge up to $9.99 for games that we would have otherwise played free on the web.

The WSJ article also made no mention of the price point.  It’s certainly a tough question, and it’s entirely possible that RIM hasn’t decided where to position the device in terms of pricing.  To make an Apple comparison again, the iPad can easily be sold at a loss because of the implied revenue they expect to make by selling apps, much like Microsoft has done with their Xbox.  The money is in the software (games or otherwise).  But without a robust developer base, you can’t count on app sales as a revenue stream to keep the device afloat.  In that sense, and with an entirely new OS, the Blackberry faces the same uphill battle that Sony did when they launched the PS3.  The console is certainly a very capable device (as I’m sure the PlayBook will be), but it struggled to gain traction for quite a while because developers shied away from its largely unknown architecture.

Ray Sharma, founder of XMG Studios, a closely held Toronto firm that develops games for the iPhone and Android platforms, was encouraged by RIM’s announcements Monday, but said it’s too soon to say whether his firm will begin developing games for the BlackBerry platform or for the PlayBook.

Mr. Sharma said the QNX operating system, while highly touted, is an unknown. By contrast, the Android system is on version 2.2, while the Apple OS is in its fourth iteration, he said. Mr. Sharma is also monitoring the progress of Microsoft Corp.’s new Windows mobile operating system, which will integrate with the company’s X-Box videogame system, making it particularly attractive for game developers, he said.

WSJ

RIM will try to compete for developers’ attention by waiving developer fees and attempting to streamline the app-creation process with a new development platform, but they are taking a significant risk with PlayBook, because of the enormous first-mover advantage enjoyed in this kind of product.  The quantity and quality of software is what will sell the hardware, and hardware sales attract developers in-turn.  It’s a chicken-egg situation that either results in a snowball-cum-avalanche or complete gridlock.  RIM is attempting to move the PlayBook by adding more features than Apple’s iPad, but they are features that do not offer the company additional revenue streams.  Connectivity through your Blackberry phone’s existing data connection means no revenue through sales of additional data plans.  And as I’ve already said, Flash support means that apps can run on the web instead of being sold in RIM’s version of the App Store.  I wouldn’t be surprised if the PlayBook was actually more expensive than the iPad, offering more features and more free content once you pay the upfront cost, and I don’t see that strategy dethroning El Jobso.  So where’s their edge (and you can’t feed me the BBM mantra anymore!)?

The stock market doesn’t appear to see one, as RIMM shares are trading down about 3% today while the broader market hovers around neutral to slightly positive.

[Wall Street Journal]

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Apple to Hold Press Conference Addressing Antenna at 1:00pm EST

Seen here demonstrating to all you idiots how to properly hold a phone (it’s like you have to tell fish water is wet…), Apple honcho Stevie J says he still does not plan on a recall of iPhone 4.  $AAPL shares saw a spike late in yesterday’s trading day (like everything else) but has since broken under $250 yet again.  My guess is this level will hold likely again as well, as Apple is expected to at least alleviate some uncertainty and finally address this issue.  Free bumpers would probably cost them only pennies/share and that seems like the most likely scenario.

Gizmodo’s Brian Barrett notes that Apple’s antenna engineers were aware of the issue, but apparently lost a battle with the team in charge of the design aesthetic of the new phone. Jesus Diaz points out that a “silent recall” might already be going on, as a user who exchanged his phone within the warranty period was unable to reproduce the problems with the new unit.

Basically what I’m telling you is if you want total coverage of this ongoing issue, head over to Gizmodo, who will also be covering the press conference live starting at 1:00pm EST.

UPDATE: Free bumpers until September 30th. It it’s implied then, that by that date, they’ll have the antenna problem fixed in new stock.

250/share holds, $AAPL gets a short term pop on the announcement.  Even turns positive despite Nasdaq being -50.

AAPL Shares Sliding on Speculation of Recall

AAPL is now down nearly 3% on a day when the DOW is up over 1%…not something you have seen lately. In fact, it seems like over the last month, the exact opposite has been true quite a few times.  Seems like the market is baking in some speculation that Jobs’s antenna problems could lead to a wide-scale recall of iPhone 4 hot off the heels of Consumer Reports’ big thumbs down.

I don’t see this ending any other way but giving out free bumpers, mostly because iPhone users are clamoring for it, essentially giving El Jobso a cheap escape hatch from this debacle.  Apple obviously doesn’t want to have to deal with a recall, but in an ironic twist of fanboy-consumerism neither do the users.  Maybe it’s because the phone is so ridiculously fragile to begin with (uhh, it’s made of glass) that 99% of users plan to purchase some kind of case anyway, which has been reported to mitigate the issue.  So they want free bumpers.  Problem solved, on the cheap.

Or they could go the MSFT direction and just scrap the whole product line. LOW BLOW!