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?
6/20/2012 4:43:09 AM
are you crazy? i live in india, and blackberries sell for a massive premium here. the top of the line (lol ... top of the line BB. apologies for the oxymoron.) phones like the bold and torch lines are among the most expensive phones in the market, costing close to or even over US$700 (at the current exchange rate, maybe a little less:).
the cheapest curve model sells for over US$200 a pop, and the high end curves sell for US$400.
blackberry's marketing campaign actually revolves around BBM. the cheap models come with 2 yrs free bbm. because hey, it's not enough to stick one up you while coming when people will take one more for the road. edge (2G) blackberry plans cost as much as standard 3G plans.
india is one of blackberry's largest markets almost entirely thanks to BBM. so yeah, it's a pretty precarious position.
"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer
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