RIM in freefall: huge losses, job cuts, BB10 delayed till Q1 2013

RIM in freefall: huge losses, job cuts, BB10 delayed till Q1 2013Ouch. Things haven't exactly been going well for Research in Motion of late, but its latest train-wreck of a quarterly earnings makes its troubles so far feel like the good old days.

The figures tell their own story: a $518m quarterly loss – RIM's first since 2004, a 41% drop in smartphone sales year on year, and 5,000 more jobs being axed. But arguably the worst news is that BlackBerry 10 will only be ready in Q1 2013.

Nobody was expecting stellar results from RIM's latest report card – one analyst described the company's outlook as “terrible with a scoop of worse”, but the actual figures [PDF] are even worse than forecast.

The company brought in $2.8bn in total revenues for the quarter, a full 33% down on the previous three months. A total of 7.8m BlackBerry handsets and 260,000 PlayBook tablets were shipped – yes, shipped not necessarily sold – over the three months, also well down on the previous quarter.

The $518m net loss is the company's first quarterly loss since 2004, and is set to trigger a further wave of cutbacks that will see another 5,000 jobs axed.

And just when RIM could desperately do with some positive news to provide a ray of hope in what is otherwise a very bleak outlook, the company has announced that its “Hail Mary” shot – the much-vaunted BlackBerry 10 OS – has been delayed and will only launch in Q1 2013 at the earliest.

RIM didn't elaborate much on the reasons why, saying only that the integration of some BB10 features and a higher-than-anticipated volume of code was taking longer than expected to work through – no surprise considering the massive staff cuts the company has endured over the past 18 months.

Ever on message, RIM CEO Thorsten Heins said he was “confident that the first BlackBerry 10 smartphones will provide a ground-breaking next generation smartphone user experience”, but also admitted the next several quarters would continue to be tough on the company.

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JanSt / MOD  Jun. 29, 2012 at 11:08

“confident that the first BlackBerry 10 smartphones will provide a ground-breaking next generation smartphone"

Groundbreaking? After those delays? What would it have been without the delays? Superduper-groundbreaking?

Pondlife  Jun. 29, 2012 at 11:14

Maybe they mean that like the old Atari 2600 ET game they will have to bury them in the desert.
Game over.

JanSt / MOD  Jun. 29, 2012 at 13:27

I guess they better start porting BBM and BMail to WP? :p

satchef1  Jun. 29, 2012 at 17:40

Funny you should say that. Engadget are reporting that Microsoft have been sending offers RIM's way. Depends how desperate they get/how well Windows Phone 8 does I guess. BB10 has fail written all over it; while it looks good I can't see them getting it out quick enough, and will be amazed if it isn't a bug-ridden mess when they eventually do.

Betas  Jun. 29, 2012 at 19:01

bbx with qt + n9-like swipe ui = win from my perspective. hurry up rim!

Pondlife  Jul. 1, 2012 at 19:15

Well that's trouble they aren't hurrying up and are disappearing fast


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