As RIM Waits on BB10, Another Manufacturer Bails on it
June 18, 2012 3:29 PM
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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.
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RE: Android phone?
6/19/2012 9:01:45 AM
You are aware that Heinz said he's open to a sale, right?
"Chief Executive Officer Thorsten Heins said yesterday the BlackBerry maker will concentrate on the market it once dominated following a fifth straight quarterly sales shortfall. He also said he would consider a sale of the company, though that is not the “main direction” at the moment." -
The reason that's not their primary strategy is because no one actually wants them.
"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il
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