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PlayBook

In an interview with Bloomberg this week, Research In MotionLtd. co-CEO Jim Balsillie said his company will price its upcoming PlayBooktablet at โ€œunderโ€ US$500.

But with an entry level iPad already on the market at $499,some bloggers questioned whether Balsillieโ€™s price point hint will do enough toexcite potential buyers โ€” especially enterprises customers.

Chad Berndtson, a blogger with CRN, wrote that Balsillieโ€™sโ€œvague pronouncementโ€ still leaves more questions than answers, such as how thePlayBook will help win over enterprise business users in the market for atablet.

โ€œRIM seems to be resting on that appeal, as well aspositioning PlayBook as a best-in-class option for developers and a showpiecedevice for lovers of Adobe Flash,โ€ he wrote. โ€œBut despite its platform andprocessing punch, PlayBook appears to lack the connectivity options of rivalslike the Samsung Tab, and given the long-awaited updates to iOS contained inAppleโ€™s 4.2 release, much of what the iPad lacked in comparative featuresappears to have been resolved.โ€

ZDNet blogger Larry Dignan was not surprised at the news. Hewrote that any tablet that doesnโ€™t start at $499 or less is doomed in todayโ€™smarket.

โ€œIโ€™ve been pretty vocal that Android tablets need to sell ata discountโ€”especially with 7-inch screens. RIM, which will sell the PlayBook asan enterprise device, may have more leeway on pricing, but not much,โ€ he wrote.โ€œAfter all, RIMโ€™s PlayBook has a 7-inch screen.โ€

The bigger question for Dignan going forward, he said, iswhether RIMโ€™s use of Adobe Flash and AIR will be a success for the company.

โ€œRIM will rely heavily on Adobeโ€™s software to deliver appsand other platforms,โ€ he wrote. โ€œWithout Flash, RIMโ€™s Playbook might as well bea Frisbee.โ€

โ€œThe downside to this equation, however, is this: If theFlash implementation on the Playbook is botched by RIM, Adobe will take a hit.RIM has been so outspoken about the PlayBookโ€™s ability to handle Flash that itwonโ€™t be the only one dinged if things go wrong.โ€

Thinq.co.uk blogger Stewart Meagher also picked up on thistheme. He wrote that despite the PlayBookโ€™s supposed enterprise pedigree, RIMseems to be making too big of a deal over the fact that it can play Flashvideos and animation.

โ€œWe might be wrong here, but we donโ€™t reckon being able towatch YouTube videos of piano-playing cats is an essential requirement in theaverage boardroom,โ€ he wrote.

Meagher added that RIM will have an uphill battle to makeany significant dent in Appleโ€™s lead, and will need to significantly undercutthe iPadโ€™s $499 starting price in order to steal sales from the Cupertino, Calif.-basedcompany.

โ€œThe iPad, which was dismissed by most as a faddy toy for aniche market, is increasingly being embraced by enterprise, much to theannoyance of the dozens of OEMs who thought they could undermine the device bycramming a half-baked version of Windows or Android,โ€ he wrote.

Mont Cessna with WirelessGround was more optimistic andexcited about Balsillieโ€™s announcement, but didnโ€™t shy away from pointing outthe gamble RIM is taking with the AIR platform.

โ€œThe company is pushing the AIR platform as a way to quicklybuild or port apps to the PlayBook,โ€ he wrote. โ€œIf AIR falters or ultimately isunpopular among developers, RIM could find itself in quite a dilemma. Adobeโ€™ssecurity track record on Flashโ€”which powers much of AIRโ€”could be anotherweakness that RIM will have to manage.โ€

Cessna added that one big security breach in Flash might beall it takes for the PlayBook to lose its credibility from businesses.

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