RIM To Punish Itself For Weak PlayBook Sales?

Canadian smartphone maker Research in Motion has announced that it will charge itself to make up for the under-performing PlayBook tablet in its third quarter.

The company said that the tablet managed to sell just over 150,000 units in the third quarter, down from 500,000 in the first quarter and 250,000 in the second quarter.

RIM said that it will be taking a charge of $485 million to make up for the dismal sales and would also be taking an additional $50 million charge to make for the three-day long global BlackBerry network outage, with the company ending up offering free apps and tech support to customers.

"RIM is committed to the BlackBerry PlayBook and believes the tablet market is still in its infancy," said Mike Lazaridis, co-CEO of RIM in the statement reports TechCrunch.

"Although a number of factors have led to the need for an inventory provision in the third quarter, we believe the PlayBook, which will be further enhanced with the upcoming PlayBook OS 2.0 software, is a compelling tablet for consumers that also offers unique security and manageability features for the enterprise." he added.

The company also mentioned that the current price cuts for the tablet had helped pump up the sales for the PlayBook and added that it plans to provide a free 2.0 upgrade in February.