How RIM Can Take On the iPad

In the wake of Apples (NASDAQ: AAPL ) successful release of the iPad 2 tablet,
Research In Motion (NASDAQ: RIMM ) will get into the game when its BlackBerry
PlayBook goes on sale April 19. As promised by RIM co-CEO Jim Balsillie in
November, the PlayBook will sell for under $500, matching the iPad 2 with its
Wi-Fi-only, 16-gigabyte model at $499. Models with 32GB and 64GB of memory will
be available at $599 and $699, respectively. Almost every electronics retailer
in the country will carry the PlayBook, with Best Buy (NYSE: BBY ), Staples
(NASDAQ: SPLS ), Office Depot (NYSE: ODP ), and Radioshack (NYSE: RSH ) on
board. Even though Research In Motion has foregone 3G in the first version of
the PlayBook, AT&T (NYSE: T ), Verizon (NYSE: VZ ) and Sprint (NYSE: S )
retailers will also carry the tablet. But competitive pricing and good retailer
support may not be enough for RIM to break through the iPad 2 wall. In the weeks
since its February release, Motorola (NYSE: MMI ) has struggled to make a
powerful impact with the Google (NASDAQ: GOOG ) Android-powered Xoom tablet.
What can Research in Motion do to avoid the same fate? Hit the consumers first
After a year of doom-saying as Android phones and the iPhone rose, RIM closed
2010 strong with BlackBerry sales up 40%. The companys third-quarter surge came
from a 180-degree shift in its customer base. As business clients began to
explore the competition, consumers discovered the BlackBerry, particularly the
Curve and Torch models. RIM needs to focus on those BlackBerry users with the
PlayBook, emphasizing how the tablet will compliment their smartphones while
still offering unique features. For now, the company is calling PlayBook the
worlds first professional-grade tablet. Thats not the language this device
needs. Emphasize price Along with the opportunity to capitalize on the flood of
new BlackBerry users that bought phones last fall, RIM also can define the
PlayBook as a low-cost alternative to the iPad 2 and new competitors like Xoom.
Highlighting the absence of 3G data contracts and a simple-to-understand
selection of models compared to the iPad 2 will help differentiate the PlayBook
even if those talking points are superficial. Transparent advertising One of
Motorolas biggest missteps with the Xoom has been its bizarre advertising
campaign. No one watching television ads where a guy grabs a tablet that turns
into a spaceship knows what theyre looking at. RIM needs to take a page from
Apple and begin an advertising campaign that clearly explains the PlayBooks
feature set, how its useful as a tool at work and home, and how it can enhance a
BlackBerry smartphone. No gimmicks, a clear message, and an emphasis on the
device as a pragmatic purchase will give the PlayBook a fighting chance. With
the above strategies, the PlayBook wont just rehabilitate the 7-inch tablet
market, itll help secure RIMs place as one of the major competitors in the
connected device space. As of this writing, Anthony John Agnello did not own a
position in any of the stocks named here. Follow him on Twitter at 
@ajohnagnello  and  become a fan of  InvestorPlace on Facebook.