RIM Tries to Sell Customers on Defunct Operating System, Bleeds Money
April 11, 2012 3:04 PM
Company reportedly loses 4 percent of average revenue from each new handset
gleams in new articles and slide shows put on by Waterloo, Ontario-based phonemaker Research in Motion, Ltd. (
a star of the phone world
, RIM helped define what is today called a "smartphone". But the company has fallen on hard times.
BlackBerry 10 -- or BB10, in shorthand -- offers seemingly everything RIM needs to recoup. It offers a stylish new interface built on RIM's acquired QNX operating system. And it comes on gorgeous LTE-enabled handhelds like the
But BB10 will not arrive until Q3 2012 at the soonest, a delay that has many wondering whether it will be too little, too late when it does finally arrive. For now RIM is selling what it's already conceded is, in effect, a defunct operating system -- BlackBerry 7 (BB7). After examining operating costs and inventory costs, Peter Misek, an analyst at investment banking firm Jefferies, found that RIM is spent 4 percent more per handset than it took in, in 2011.
The report is a dire sign for RIM, who is expected to perform its third inventory write-off for Q2 2012, which will be reported on September 1. Meanwhile Mr. Misek
in an interview that RIM is pumping increasing amounts of cash into advertising and price cuts, in a bid to get customers to buy its effectively defunct BB7 devices. PlayBook tablets currently retail for less than half their original MSRP.
RIM has spent heavily to advertise its PlayBook tablet and its BlackBerry smartphones, and to engage in aggressive price cuts. [Image Source: Photoree]
He adds, "The other key thing from this is that it's not likely to get better anytime soon, because until BB 10 devices are out they're going to have to keep cutting prices."
RIM has cancelled all future financial forecasts after posting its
first loss in years in Q4 2011
. That loss led to Jim Balsillie -- longtime board chairman and co-CEO -- to be dismissed from his board position, just months after he and his fellow co-CEO Mike Lazaridis were
fired from the chief executive spot
New chief executive Thorsten Heins has said he is considering transforming RIM into a licensed services company or selling RIM's assets to allow investors to recoup a portion of their recent losses. The Canadian government has
green lit a potential sale of RIM
, but any such purchase would likely have to pass the scrutiny of the
U.S. Department of Defense
, a heavy BlackBerry user.
A coalition of rappers and ex-convicts including Dr. Nono Pearson and famed cocaine dealer "Freeway" Ricky Ross recently offered a
bizarre offer to buy RIM for ~$1B USD
. The offer was met with skepticism, which was amplified by the coalition's Geocities-looking homepage and the fact that the coalitions recent charity drive, which aimed to raise "millions" had thus far raised only $5, according to the webpage.
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
"Country" Rapper Aims to Buy RIM; BlackBerries Still Poking Around in D.C.
April 5, 2012, 11:48 AM
Canadian Gov't Greenlights Potential Sale of Research in Motion
April 2, 2012, 2:31 PM
RIM Sinks Further with $125M Fiscal Q4 Loss, Key Execs Leave
March 29, 2012, 9:14 PM
Sleek BlackBerry London Leaks, RIM Prepares PlayBook OS 2.0
February 2, 2012, 12:31 PM
Co-CEOs Balsillie and Lazaridis Kicked Off Sinking RIM Ship, COO to Step In
January 22, 2012, 9:40 PM
Apple Watch NikeLab Limited Edition unveiled.
April 22, 2017, 6:20 AM
What is the Apple’s iPhone 8 specifications and release date?
April 14, 2017, 5:43 AM
Xiaomi Mi Pad 3 tablet with Hexa –Core SoC, Android Marshmallow
April 6, 2017, 6:40 AM
Vivo launches V5 Plus IPL edition smartphone
April 4, 2017, 11:10 AM
Samsung S8 and S8 Plus: On Sale April 21 at Major Wireless Dealers
March 30, 2017, 7:35 AM
Are You in the Market for Earphones?
March 24, 2017, 7:35 AM
Most Popular Articles
Surface Pro 5 Rumors - New Release Date and Price
April 22, 2017, 6:45 AM
ASUS RT-AC5300 – Ultimate Game & 4K Streaming
April 18, 2017, 7:45 AM
Dell Inspiron 17 7000 – A Premium Laptop featuring 7th Gen Intel Core i7 in a 2-in-1 Frame.
April 19, 2017, 7:45 AM
Meet the Smartphone with four cameras - Alcatel Flashphone
April 5, 2017, 11:20 AM
Vivo V5 Plus – the Selfie Softlight is on You.
April 17, 2017, 7:05 AM
Latest Blog Posts
Samsung Galaxy S8 and S8 Plus – Lots of Glass that Breaks Easily
Apr 25, 2017, 7:20 AM
Samsung Galaxy S8 – Warning for Pet Owners
Apr 24, 2017, 5:59 AM
Sound Bars and the Costs?
Apr 23, 2017, 6:30 AM
Link your Brain to Your Computer – In Four Years…Maybe
Apr 22, 2017, 7:03 AM
Google Home can now identify users by their voice.
Apr 21, 2017, 7:15 AM
Amazon Lex – Now Available for Developers.
Apr 20, 2017, 6:58 AM
You can now use Instagram offline on your Android Smartphone
Apr 19, 2017, 8:00 AM
Now you can livestream to YouTube from your mobile device.
Apr 18, 2017, 8:05 AM
Google Home – Is It a Spy Device?
Apr 17, 2017, 7:30 AM
Apple added to self –driving test permit list
Apr 15, 2017, 6:21 AM
Project Scorpio – Coming on June 11
Apr 14, 2017, 6:20 AM
Looks Like Samsung Has Been Forgiven.
Apr 13, 2017, 6:50 AM
United Airlines - Blasted on China’s Social Network and the Stock Market
Apr 12, 2017, 6:50 AM
Amazon's Third-Party Sellers Hacked
Apr 11, 2017, 6:25 AM
Microsoft Surface Pro5 Details Revealed
Apr 9, 2017, 6:41 AM
Own An Android Phone? Then you could be hacked over Wi-FI
Apr 7, 2017, 6:47 AM
Apple confirms iOS 10.3 bug and its effect on iCloud Services
Apr 6, 2017, 6:30 AM
Apple Rolls Out New Version of Apple Music
Apr 5, 2017, 10:35 AM
Apple in the News
Apr 4, 2017, 9:03 AM
Apple iPhones Will Soon Feature Graphics Chips Designed BY Apple
Apr 3, 2017, 6:23 AM
AMD Ryzen Desktop Processors Performance
Apr 2, 2017, 6:30 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information