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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.