Research in Motion (RIMM) has embarked on price cuts for its “PlayBook” tablet computer, writes Wells Fargo’s Jennifer Fritzsche this morning, reiterating a Market Perform rating on the company’s stock.?
Fritzsche note that the company a week ago cut the price for the device by $100 across all three models in Canada. And some retailers began cutting via bundling “gift cards” with purchase. RIM had indicated in its fiscal Q2 report this month it would use “promotions” to boost PlayBook sales.?
“We expect this to be the first round of cuts we see for the device and would expect it to move beyond Canada,” writes?Fritzsche.??
“As RIM previewed on its call, these additional promotional moves will weigh on near term gross margin trends. We also believe RIM’s price cuts need to come quickly before newer more competitive tablet offerings come to market.”
RIM’s shares this morning are up 20 cents, or 1%, at $21.52.
Update: TechCrunch’s Chris Valezco offers a rundown of the gift card offers in the U.S. at retailers Office Depot and Staples. He notes that in some cases, the?16-gigabyte version of the?tablet can be had for as little as $249 versus the list price of $499.?
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