RIM Delays Blackberry’s Next Version

I read an article from the New York Times by Ian Austen called “In Setback, RIM Delays Blackberry’s Next Version.” We all know that Blackberry smart phones, iPhones, and Androids are three main smart phones but according to this article iPhone has 73% of the smart phone market. Blackberry has been struggling these past years to make a profit and for the second time they are delaying the production of their Blackberry 10. The first time RIM delayed the production they resulted in a loss of $518 million last quarter. Now analysts are doubting RIM because of them delaying the production once more. RIM has decided to cut 5,000 jobs to reduce their operation costs by $1 billion. They have laid of already 16,500 employees. Because of RIM delaying the release of the Blackberry their revenue has went down 43%. As of right now they need to do something in their company that will result in a profit because their stakeholders are the most worried. RIM’s CEO Thorsten Heins stated that they are delaying the release of the Blackberry because they want the quality to be the best as possible. He also said, “I am confident that the first Blackberry 10 will provide a groundbreaking next-generation smartphone user experience.” I hope his statement is correct for the sake of RIM’s earnings.

2 thoughts on “RIM Delays Blackberry’s Next Version

  1. Blackberry is facing a very tough challenge as it has consistently been a step behind Apple, Google and Samsung when designing their smartphones. Once the dominant player int the market, Blackberry has seen its market capitalization drop from over 50 Billion to just over 7 billion in less than four years. Its unbelievable that technology can move so quickly that a former technology icon can be struggling for existence in such a short time.

  2. This posting is spot on, Blackberry was at the top of the market. Ten years ago all business executives were using Blackberry’s. Since then, many other competitors have entered the market and are beating RIM in sales nationally and internationally. I am not surprised that RIM has had a decline in revenue. I remember not too long ago when they had an outage and many people were affected. My mother and her company were all affected and it caused a major uproar in their offices. They decided to go with the iPhone because it was clear that RIM was unable to support their needs. The next day everyone had an iPhone and Blackberry was history. RIM needs to make sure that their clients are satisfied with the products they produce, otherwise, they won’t have to worry about competition anymore because they will be out of the market place.

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