RIM Recalls 1,000 PlayBooks on Glitch

Research in Motion (NASDAQ:RIMM) has recalled nearly 1,000 of its Playbook tablets due to a glitch in the operating system that could create problems during the initial set-up, according to several media reports.

The tablets, which rival Apple’s (NASDAQ:AAPL) iPad, were shipped with the flawed system.The company told CrackBerry.com in an interview, though, that most of the affected devices were still being distributed and had not reached customers.

Citing an inside source, the Engadget blog said the tablets were shipped to Staples (NASDAQ:SPLS).

RIM, whose BlackBerry has faced fierce competition from the iPhone, hoped the PlayBook would help revamp sales. But so far the device has dealt with poor reviews, complaints it was rushed out too soon and, now, a recall.

Last month, the mobile phone maker slashed its first-quarter earnings guidance on an expected drop in BlackBerry shipments.