RIM’s 16GB PlayBook isn’t generating enough revenue with its price tag of $199, so the company has decided to discontinue it completely. However, RIM does plan to continue to manufacture the 32GB and 64GB models.

Most tablet manufacturers are struggling because they’re competing with the iPad, which dominates sales in the tablet market. RIM has faced significant trouble since getting involved in the tablet market. The iPad and the Kindle Fire take up around 60% of the market alone, while the other 40% is split between assorted Android-based devices such as the Galaxy Tab.

Early last year, in an attempt to gain some footing, the company slashed the price of the 16GB model of the PlayBook from $499 to $199. The move was said to be limited time only, but the price was made permanent just a few months later. The 16GB PlayBook has all of the features anyone could need, from GPS to HDMI outputs. However, the PlayBook was released before the application boom, and it doesn’t allow the installation of such applications to “expand the usefulness of the machine.”

Still, the PlayBook has good reviews and has been called “more stable than any Android platform based tablet.” If you’re just looking for a tablet that runs e-mail and e-books with ease, the BlackBerry isn’t a bad choice.

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