TORONTO -
BlackBerry maker Research in Motion launched its new PlayBook tablet to little fanfare Tuesday, but experts say the Canadian gadget can still be successful in a growing industry dominated by hoopla surrounding Apple's rival iPad.Few people lined up at downtown Toronto electronics stores to buy the tablet, a stark contrast to the debut of the iPad 2 -- which had swarms of tech geeks snaking around the block to get their hands on it when it launched last month.
But several experts said comparing the two devices -- and their makers and users -- too closely is not quite fair, given that they differ in some major ways.
"RIM's natural constituency on the PlayBook are (business) people who don't have jobs that permit them to spend 48 hours in line waiting to buy a new tablet," said Duncan Stewart, director of technology, media and telecommunications research at consultancy firm Deloitte.
"There's people who line up overnight to see movies -- those aren't necessarily the ones with the biggest box office."
Stewart said Apple's market share will slowly shrink as the tablet market grows into a $100-billion industry in the next few years -- leaving lots of room for new tablet makers to succeed without forcing someone else to fail outright.
Analysts have been predicting RIM will sell an estimated three million units this year, compared to the roughly 15 million iPads sold in that tablet's first year. Stewart said RIM's PlayBook numbers still amount to $1.5 billion in revenues, which is otherwise large, but looks small in comparison to the juggernaut that is the iPad.
"It is sort of the problem of standing next to Shaquille O'Neal. Pretty much everybody looks small."
The lack of a fan frenzy surrounding the PlayBook launch seemed irrelevant to Ian Chan, who was first in line at 6 a.m. outside a Best Buy store in Toronto for the 7 a.m. launch.
"Apple's really good at marketing and there's a lot of brand loyalty, I guess, to Apple, with every one of their products -- like the iPad or the iPhone -- they always generate a lot of good buzz," said Chan, who works in marketing.
"RIM, I don't think they've done that. I haven't seen any commercials or anything for the PlayBooks."
Chan said he thought the PlayBook was worth lining up for because it is smaller than the iPad, which makes it easier to travel with.
Industry experts had predicted lineups for the PlayBook would be short, as the device was available at a wide number of stores and Research in Motion booked preorders online, which Apple did not allow.
Several gadget reviewers have criticized the PlayBook tablet for not having BlackBerry's signature secure server email capability, which will be featured in versions to be released later this year.
RIM also received negative publicity when co-CEO Mike Lazaridis asked a BBC interviewer to turn off the camera last week when a reporter strayed off topic in an interview about the PlayBook. The PlayBook can support Flash Player unlike the iPad.
Waterloo, Ont.-based Research In Motion Ltd. (TSX:RIM) has said it expects most of its buyers will be businesses.
Tony Chapman, CEO of advertising firm Capital C in Toronto, said he believes RIM is smart to focus on business users and sell its new product as a gadget that will help boost efficiency. He predicts future apps will be those useful to business users, like presentation software, data manipulation, collaboration, e-commerce or video conferencing.
"If they fight a direct strategy to Apple -- my tablet and your tablet-- and focus on the same target audience, I think they will fail," he said.
"By dividing and conquering, focusing on being the very best at the business segment, they will succeed because that's where BlackBerry has been entrenched in the last 10 years."
At the flagship Sears Canada store in downtown Toronto, James Tetreault, the chain's national manager of electronics, said PlayBook sales Tuesday morning were in line with what he expected.
"It's brand new technology. There's not the lineup that Apple has had -- due to all the PR that RIM has gotten the last few days. But overall, I think the turnout we had today was good," he said, adding that the store presold over 150 units, which he considered successful for a new technology product.
Sears currently doesn't sell Apple products, so he could not compare the PlayBook's first day sales to those of the iPad.
Staples Canada did not release figures, but said first day sales were better than expected.
Elliott Chun, a spokesman for Future Shop said the chain does not release sales figures, but added stores in Atlantic Canada, Ontario, Alberta and British Columbia say they are pleased with PlayBook presales and launch day foot traffic.
"In terms of expectations of preorders, they were exceeded in what our initial forecasts were for the PlayBook," he said, adding that the chain isn't measuring success by how many customers camp outside the store.
"It's different audiences that we're dealing with. What we're noticing is a lot of BlackBerry enthusiasts coming into the store."
Shares in RIM closed down $1.99 or nearly four per cent to $50.85 Tuesday on the Toronto Stock Exchange.
