RIM Stopping Wi-Fi Playbook Production Rumor – Anybody Else Confused?

I am running into a bit of circular logic with the latest rumor about the Wi-Fi BlackBerry PlayBook. The Financial Post which supposedly broke the story starts by saying that RIM shares fell about 3.5% today. They then go on to quote RBC Capital Markets financial analyst Mike Abramsky saying that the "stock slide was due to media reports claiming RIM is considering stopping production of the WiFi-only PlayBook."

The thing is the only media reports that claim RIM is stopping production of the Wi-Fi only BlackBerry PlayBook (BoyGenius Report) credit Mike Abramsky, the same analyst mentioned above who covers RIM regularly, for saying that RIM is considering possibly maybe reducing BlackBerry PlayBook Wi-Fi only production. They then go on to quote Mike Abramsky for possible reasons why the rumor, which according to all accounts he started, is possibly true because:

In our view WiFi PlayBook build reductions may: 1) reflect a pullback in production following global channel fill to 16 countries; 2) align channel inventory with slower than expected forecast sell-through; 3) accommodate a shift in production to the 3G/4G PlayBook (launches expected in 2-3 months); and 4) reflect expectations that 3G/4G PlayBook may outsell/cannibalize WiFi-only models (considering carrier alignment and customer/enterprise feedback). RIM also appears to be re-prioritizing its R&D from PlayBook to its QNX-based ‘superphones’ expected early 2012, considering its importance to stemming US share losses.

In our view WiFi PlayBook build reductions may: 1) reflect a pullback in production following global channel fill to 16 countries; 2) align channel inventory with slower than expected forecast sell-through; 3) accommodate a shift in production to the 3G/4G PlayBook (launches expected in 2-3 months); and 4) reflect expectations that 3G/4G PlayBook may outsell/cannibalize WiFi-only models (considering carrier alignment and customer/enterprise feedback). RIM also appears to be re-prioritizing its R&D from PlayBook to its QNX-based ‘superphones’ expected early 2012, considering its importance to stemming US share losses.

So now I am still confused as to if RIM is stopping production or simply building less of them now that they have fully stocked their sales channels. The Financial Post then makes a fantastical jump to RIM planning on ceasing production of the Wi-Fi only model. At least I follow Mikes reasoning that RIM may be focusing on their 3G/4G PlayBook along with their 7 new phones and upcoming QNX superphones. On the other hand who knows what is actually going on but RIM is pushing the PlayBook hard. It could be they simply are moving everything over to 4G models in the future but that seems to be a monumental waste.

Anybody else seeing something a bit off about this rumor?

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