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RIM rollercoaster continues to unravel as it plummets downhill

Waterloo, Ontario-based smartphone maker Research in Motion, Ltd. (TSE:RIM) 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 (GOOG) Android or Apple, Inc.'s (AAPL) iPhone.  RIM has seen market share of its defunct BlackBerry 7 operating system plunge into free fall.

The latest sign of the company's sales woes comes as Canadian manufacturing partner Celestica Inc. (TSE:CLS) 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.

Source: Celestica



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RE: Android phone?
By adl on 6/20/2012 4:43:09 AM , Rating: 1
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.

rant over.


“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads














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