Playbook Sales Steady Despite Recalls

RBC Capital Markets said its checks showed that sales of Research In Motion's (NASDAQ:RIMM) PlayBook tablet remain steady since its launch on April 19, with an estimated 250,000 PlayBooks sold to date.

RIM may sell 500,000 Playbooks in the first quarter, above early sales of the Android-powered Motorola Xoom, analyst Mike Abramsky said in a note to clients.

Checks at 180 Best Buys show 14 percent of the 16GB sold out, 71 percent of the 32GB sold out, and 84 percent of the 64GB sold out. However, 32GB/64GB stockouts appear allocation-related.

Despite its launch drawbacks and RIM's recall of 1,000 PlayBooks, checks show PlayBook returns are nominal to date, the analyst wrote.

Forward milestones include further PlayBook launches (3G/4G, international) and awaited updates for PlayBook (e.g., standalone email, Android player, native SDK).

Abramsky has a sector perform rating and $55 price target on Research In Motion stock.