Analyst: RIM could halt production of PlayBook [UPDATED]

RIM may be getting ready to pull the plug on the PlayBook's life support machine, according to an analyst with RBC Capital Markets.

RIM may be getting ready to pull the plug on the PlayBook's life support machine, according to an analyst with RBC Capital Markets.

RBC Capital Markets Managing Director Mike Abramsky sent a note out to investors with the warning/prediction/guess about RIM's tablet offering (*delete as applicable):

"Research In Motion is possibly planning to stop production of the BlackBerry PlayBook's Wi-Fi model."

One thing that's not made clear is whether this would be a temporary halt of production to clear lines or a permanent one.

There have been rumors that the PlayBook tablet has been a flop going around for a while now. There have also been rumors that RIM has slashed internal sales targets of the PlayBook by a half. We also had an open letter claiming to be from an anonymous RIM employee outlining how the company could pull itself out of the tar-pit it's found itself in.

RIM has also began a cycle of lay offs following lower than expected sales during the first quarter.

[UPDATE: RIM says that any rumor of the PlayBook being discontinued it 'pure fiction' and says there is 'no plan to discontinue' the tablet. RIM added that he PlayBook is launching in more countries 'as we speak.']

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