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Poor Sales, Earnings Pushed RIM to Delay BlackBerry 10 Release

The deteriorating subscriber base in the United States (US) and poor first quarter earnings and sales eventually helped BlackBerry maker Research In Motion (RIM) decide to delay the release of its much anticipated BlackBerry 10 (BB10) mobile operating system. In a conference call with investors, RIM’s CEO Thorsten Heins said that BB10 will not be released this year.

Image Credit: BGR.com

“The schedule we were working toward, which would have the first BlackBerry 10 smartphones in the market this calendar year, is no longer realistic,” Heins said.

Some experts actually predicted that since BlackBerry 10 development team has been focusing more on the quality of the next generation system, the last quarter of 2012 would be too early to release it. Just a few days ago, Heins himself confirmed that such is the case.

Technology blog, TechRadar, quoted RIM’s CEO saying, “RIM’s development teams are relentlessly focused on ensuring the quality and reliability of the platform and I will not compromise the product by delivering it before it is ready.” If this is the case, the OS will come with almost perfect performance and that all possible bugs have been addressed, otherwise, RIM couldn’t possibly recover from the fall.

Since the earnings and sales are poor for RIM during the first quarter and that it is on the verge of a breakdown, there would be some layoffs throughout the year said Heins. Reportedly, RIM will be terminating the jobs of select 5,000 employees to save approximately $1 billion in both operations and development, although there’s no telling it who will be sent home without a job.

In the first quarter of 2011, RIM reported having earned a total of $4.9 billion. In the same period this year, there was a fairly huge drop in revenue of up to 43% as RIM recently reported to have earned just $2.8 billion. Of course, the CEO shared his disappointments during the conference.

Apparently, RIM is hanging by a thread. The BlackBerry 10 would be the last card the company would lay down the table next year to help itself. There were buyout rumors on RIM but it looks like no company would want to gamble in acquiring it unless it would show a considerable improvement in its market share.

2 Comments

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  1. Sounds like you know RIM very well. But for argument’s sake and taking your example, for me, that explains why RIM couldn’t catch up with the competition.

    Surely, a car pushed by 3 people would bring it somewhere far…but not far enough. Apparently, BlackBerry devices became stagnant in almost every aspect. If RIM is still trying hard to survive (or not), we will be able to see it once BB10 is released.

  2. RIM has strange culture and self distruct political environment.

    In RIM if a new hired person figure out major problem and introduce efficient approach, both manager and his buddy group member will proof their wrong approach works. just like someone point out driving a car is right way, pushing a car is wrong way, then both manager and his buddy group member will hate you, and proof that 3 person can also move the car by pushing it. cheating email will be sent to some vice president, saying like: see, the car moving, pushing a car is a natural part of the process, in order to deny new hired contribution of introducing skill of drive a car, they have to deny merit of driving a car.

    It is very strange company culture and strange company political environment, it promote stealing and cheating skill. RIM’s management may be a typical instance in MBA course.

    This culture deny or steal hardworking team members’ contribution/innovation, generate strange political environment, destroy RIM.

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