So it’s been a particularly quiet day, post launch, PB-Day +1, as I am going to be counting all the days from here on out. A few analysts were quite surprised with the lackluster performance of the PlayBook at launch. I must say, I was pretty disappointed as well. I mean come on, a tablet touting superior performance should have a stellar launch! Alas, RIM has done it again…
I’ve mentioned our friend Tavis McCourt over at Morgan Keegan, but Mike Abramsky from RBC Capital, he’s a new friend of mine. They both weighed in on the happenings of PlayBook launch day. We know McCourt has had his opportunity to fondle the PlayBook, and his review wasn’t too stellar. Neither was his outlook. Surprisingly enough he had this to say:
After “playing” with the Playbook for the past few days, we largely concur with most of the reviews of the device. Its application selection is poor in both quality and quantity currently, which limit its consumer appeal relative to the iPad2. However, everything else about it is really high quality and innovative. In our opinion, this device is an Amazon app (for e-books, movies, TV, etc…) and a native PIM app away from being a serious competitor to iPad2, both of which we suspect are coming over the next few months.
He goes on to say that the scope of the company’s launch of device was negligible, since RIM is particularly interested in the Enterprise side of things. McCourt maintains a neutral rating on RIMM shares. I doubt anyone views RIM as a consumer power, but that is quite surprising as tablet computers are some what of a luxury item in today’s terms.
Abramsky assures that the RBC’s estimates of 50,000 units sold on launch day (including pre-orders) are accurate and may stay true to selling half a million units by the end of this quarter. This was much better than Motorola’s Xoom tablet launch, noting that they only sold 100,000 units in the first month. I think that is underselling the device quite a bit. Especially with massive updates rolling out weekly, if not daily. Not only the updates, but the PlayBook will also see a huge growth in the app environment and a strong growth in ecosystem in weeks to come. By US Q3 the PlayBook could see a huge jump in sales with native e-mail apps, 3G/4G support, as well as Android app support.
Personally I have a good feeling the PlayBook will beat analysts projections and we will see this becoming a strong player in the tablet market to come. RIMM shares rose roughly 2.3% today, a huge resurgence from yesterdays beating. Abramsky reiterated a $90 per share target and firm “Top Pick” rating.
Source: Barons