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RIM recalls 1,000 PlayBooks

Research In Motion has recalled about 1,000 of its PlayBook tablets which were shipped with a flawed operating system build that could pose problems during the initial set-up,technology blog Engadget and several other media channels reported.

Written by Agencies |
May 17, 2011 3:25:22 am

Research In Motion (RIM) has recalled about 1,000 of its PlayBook tablets which were shipped with a flawed operating system build that could pose problems during the initial set-up,technology blog Engadget and several other media channels reported.

In a statement to crackBerry.com,the BlackBerry maker said the majority of the affected devices were still in the distribution channel and had not reached customers.

The company is working to replace the affected tablets,it said. The Engadget blog reported on Saturday that the faulty batch was shipped to office supply chain Staples .

The news is the latest setback for RIM,which recently issued a first-quarter profit warning,citing lower-than-expected BlackBerry sales. RIM’s stock breached its 52-week low in Toronto trading and is hovering just above its 52-week low on the Nasdaq Stock Market,finishing Friday at $43.24 a share on Nasdaq.

The Waterloo company is transitioning to new products that it hopes spark a turnaround in sales and revitalise its image.

The highly-anticipated PlayBook launched to lukewarm reviews last month. The device features a new operating system from QNX Software Systems,which RIM acquired last year. It also features Adobe’s Flash software. However,it has a relative dearth of third-party applications,which are a key reason for the success of Apple’s iPad.

In April,RIM cut its first-quarter earnings outlook citing fewer BlackBerry smartphone shipments in the period.

Research In Motion and Staples could not immediately be reached for comment.

RIM has not publicly said how many PlayBooks the company has sold nor how many it expects to sell before the end of the quarter. However,estimates say RIM may have sold as many as 50,000 PlayBooks on its first day of sales last month . It is expected to provide precise information when it reports its results in June.

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