RIM Readies Playbook Launch for April 19

The huge error that the Motorola Xoom made at launch was its $799 price tag. RIM is coming out on April 19 at $499, which matches the iPad 2's entry level WiFI price.

What's not apparent to most non-tech-insiders is that RIM's Playbook is 7". In one way of looking at it the Playbook is more expensive than the iPad. No doubt, if the 7" version succeeds a 10" version will appear later.

Psychologically the $499 entry level price point is critical for iPad competitors, in the same way that smartphones priced above $199 (w/contract) are essentially DOA. Consumers will now be willing to consider the Playbook at $499 and then will discover it's smaller.

Somewhat paradoxically, though it makes the device more expensive in some respects, the 7" size gives the Playbook a fighting chance vs. the iPad because it's more portable. A 10" competitor from RIM out of the gate would likely fail in the same way that Xoom is failing to build momentum.

Many enterprises will probably give the Playbook serious consideration and the smaller form factor will be appealing to many consumers as well. The Galaxy Tab sold on the strength of its smaller size -- not the UI/UX, which was crappy.

Like a Hollywood movie the Playbook will get a wide release on April 19, going on sale at more than 20,000 stores in the U.S. and Canada. Among them are BestBuy, RadioShack and Staples, in addition to carrier stores. 

Battery life has been a rumored issue for the Playbook. But given the strength of RIM's brand and its price point, I would imagine the Playbook will be a modest hit when it comes out.