Story updated with comment from RIM
NEW YORK (
Research In Motion
denied an analyst report that the company has ceased production of its PlayBook tablet and could be considering shutting down its tablet business.
"RIM remains highly committed to the tablet market," a company spokesperson said in an e-mail.
The analyst, Collins Stewart's John Vinh, had cited news that RIM manufacturing partner
had laid off workers from a factory producing PlayBooks.
The report comes after RIM failed last quarter to make headway in the tablet market, which is dominated by
iPad. Competition in the space is increasing too as
officially entered the fray Wednesday,
intended to rival the iPad on price.
The PlayBook has been dogged by negative press and critics
and lacking in key features, such as e-mail, calendar and address book applications, following its April launch.
RIM shipped 500,000 PlayBooks during the first quarter and just 200,000 during the next.
on Thursday slashed the price of the PlayBook by $200. A 16GB device can now be purchased for $299, rather than $499.
Shares of RIM dropped 4.9% to $20.82 in afternoon trading on Thursday.
RIM could not be reached for immediate comment.
Written by Olivia Oran in New York
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