As RIM Waits on BB10, Another Manufacturer Bails on it
June 18, 2012 3:29 PM
comment(s) - last by
RIM rollercoaster continues to unravel as it plummets downhill
Waterloo, Ontario-based smartphone maker Research in Motion, Ltd. (
) is facing a potential end-of-life scenario as it scrambles to deploy its next generation
BlackBerry 10 (BB10) operating system
to market. BB10 was
supposed to arrive
early this year, but instead was pushed back to a late 2012 launch. Customers were left waiting... and waiting.
Except most didn't wait. Most moved on to other platforms like Google Inc.'s (
) Android or Apple, Inc.'s (
) iPhone. RIM has seen market share of
its defunct BlackBerry 7
plunge into free fall
The latest sign of the company's sales woes comes as Canadian manufacturing partner Celestica Inc. (
) announced it would "wind down" production of BlackBerries and commit to "restructuring" to produce more popular devices -- like Android smartphones.
RIM is accumulating a
soaring inventory of unsold handsets
and its CEO Thorsten Heins talked about
"streamlining" his company's workforce
and supply chain. Apparently part of that process is to bid farewell to one of the company's longest term domestic manufacturing partners.
It's no big loss to Celestica, though. Celestica expects revenue of between $1.65B and $1.75B USD -- and it only expects a $35M USD hit from the RIM phaseout.
The exodus from RIM is not limited to customers and suppliers. RIM has also seen many of its most
promising executive talents jump ship
to more successful firms, as it's been left to
make due to with castoffs
from other bankrupt or struggling firms.
It seems that RIM will likely survive long enough to deliver BB10 out of sheer stubborn will, if nothing else. But amid mounting financial losses and a complete dissolution of the company's assets from head to tail, the question will be what will be left of it when it gets there.
This article is over a month old, voting and posting comments is disabled
RE: Android phone?
6/18/2012 5:55:26 PM
RIMM selling an Android phone?
The fact is application libraries are starting to govern the choices purchasers make. There are applications that people feel they have to have, meaning that a smartphone user will only consider an operating system with those "essential apps" in the application library.
I don't know if RIM charges users for after sales services like secure email, but sales are at least part of their business model ... which is their problem at the moment: people aren't buying their phones.
The easy way to fix that is to make a phone people will buy i.e. an Android phone. They could easily add a few of their premier "Blackberry apps" to it (e.g. the secure email) as a "sweetener". This way they gain the benefit of Android's large application library (i.e. they aren't overlooked by previous Android users wanting to purchase a new phone) without having to pay the full cost of maintaining it. The sales of the Android phones will then help them support their premier products.
"This is from the DailyTech.com. It's a science website." -- Rush Limbaugh
Unsold BlackBerries Pile Up, Layoffs Near, But RIM CEO Claims All is Well
May 30, 2012, 10:05 AM
RIM Prepares to Cut 2,000 More Jobs as it Tries to Stay Afloat
May 26, 2012, 2:00 PM
Yet Another Talented RIM Executive Jumps From Burning Platform
May 24, 2012, 11:17 AM
RIM Puts LightSquared Castoff in Charge of Marketing; Airs Vague Ad Pitch
May 8, 2012, 4:10 PM
Do or Die: BlackBerry-Maker RIM's Stock at 8 Year Low as BB10 Nears
May 4, 2012, 1:06 PM
AT&T Defeats Purpose of New Apple SIM, Locks iPad Air 2 SIMs to Its Network
October 24, 2014, 2:17 PM
Get Ready for "Microsoft Lumia" Smartphones in Next Few Months
October 24, 2014, 12:26 PM
Report: Samsung Galaxy S5 to Receive Android 5.0 Lollipop in December
October 24, 2014, 11:26 AM
Dreadful Fire Phone Sales Lead to $170M Writedown for Amazon
October 24, 2014, 8:55 AM
Xiaomi Moves Data Out of China to Woo EU, America, Escape Security Concerns
October 23, 2014, 5:11 PM
Android Wear’s First Major Update Brings GPS, Offline Music Support
October 23, 2014, 1:34 PM
Most Popular Articles
Chinese Government Declares Digital War Against America's Top Tech Firms
October 20, 2014, 12:07 PM
Samsung Announces Galaxy S5 Plus with Snapdragon 805 Processor, LTE-A
October 22, 2014, 3:40 PM
Windows 8.1 + Android "Sell Mini PC" w/ Bay Trail Creates New PC Form Factor
October 20, 2014, 5:07 PM
Apple's iPad Air 2 Features Triple-core A8X Processor, 2GB of RAM
October 21, 2014, 8:32 PM
Apple Releases iOS 8.1; Adds Apple Pay Support, SMS Relay, Instant Hotspot
October 20, 2014, 1:00 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information