Research In Motion is halting production of the PlayBook, and may give up on tablets all together, according to a report from Collins Stewart chip analyst John Vinh.
Update: RIM says, “”RIM doesn’t typically comment on rumours, but any suggestion that the BlackBerry PlayBook is being discontinued is pure fiction. RIM remains highly committed to the tablet market.”
Vinh’s note was picked up at Barron’s by Tiernan Ray. Here’s the key paragraph from Vinh:
While Quanta last week acknowledged that it had laid off a significant number of production workers from a factory focused on producing the PlayBook, our research indicates that the ODM has essentially halted production of the tablet. Additionally, our due diligence indicates that RIMM has canceled development of additional tablet projects.
It wouldn’t be a complete shock if RIM decided to stop making tablets. They’re not selling, and the company is probably losing money on them.
It needs to focus on making good smartphones.
All that said, it’s still early in the game and giving up after the first at-bat seems short sighted.
Then again, RIM probably can’t afford too many losses right now.
We’re reaching out to Collins Stewart for the full report, and will fill this in when/if we get more.
One thing to note here: Vinh is a chip analyst, not a RIM analyst.
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