RIM Takes Huge Loss, Lays Off 30% of Workforce, Delays BB10 Until 2013
June 28, 2012 5:15 PM
comment(s) - last by
Is this the end?
predicting a small loss
from embattled Canadian smartphone maker Research in Motion, Ltd. (
); a loss that they concluded would drive the company closer to a likely sale in 2013. But the analyst consensus of a $0.03 USD per share loss on $3.1B USD revenue went from seeming gloomy, to seeming downright flowers and roses compared to RIM's
I. RIM Reports Horrifying Financials
[PDF] an abysmal $2.8B USD in revenue an a lost of $0.30 USD per share. The loss is RIM's
second straight quarter
of escalating money bleeding.
RIM, which employs approximately 16,500 people worldwide, also committed to layoffs of 5,000 employees, or roughly 30 percent of its workforce. That will leave RIM with just over 10,000 employees globally -- about half of its peak workforce of 20,000 in 2009.
RIM is laying off almost a third of its employees. [Image Source: BGR]
The jobs cuts were much worse than
-- 2,000 layoffs. RIM had
announced that layoffs
would indeed be coming weeks ago, but it held off on sharing exact numbers. It's unfortunate to see exactly how deep RIM is cutting to try to save the ship, but it's perhaps understandable given how much worse than expected the financials were.
While RIM clings to a dwindling number of large enterprise users, the root of its problem was plunging sales of BlackBerry smartphones. RIM mustered only 7.8 million units sold, down over 40 percent from last year's
[PDF] (13.2 million). Sales of the PlayBook tablet plunged to 260,000 amid RIM's
cut of its most popular SKU
. That marks almost a 50 percent drop from last year's sales of 500,000 units.
Ex-RIM CEO Mike Lazardis's 2009
during the peak of RIM's success is looking more and more like a warning to future CEOs on the perils of mismanagement -- "Sometimes we have to put the brakes on. We've shown that we can handle annual 100% growth. I'm not sure we could handle more than that."
Every part of RIM is shriveling and dying, from its
its business user-base
, to its
II. BB 10 Gets Delayed, End is Nigh for RIM
But that's not even the bad news. RIM also offered this jewel in its earnings report:
BlackBerry 10 smartphone launch now scheduled for Q1 of calendar 2013.
In other words, everyone's favorite
vaporous smartphone platform
has been bumped yet another half year.
BB10 has been bumped to 2013 -- if RIM makes it that long. [Image Source: NeoWin]
To put this in context, RIM bought QNX in April 2010, with the intention of using it as a replacement for its current smartphone operating system. In a market that moves like lightning RIM's fumbling executive ranks have managed to take nearly 3 years to turn this gifted wrapped platform into product. In other words, what should have been a chip shot was turned into a Hail Mary due to pure,
RIM over the last year has made a sad joke of itself, with its
faked "flash mob" protests
at Apple, Inc. (
) stores in Australia and its new chief executive's
on the world's most used smartphone platform, Google Inc.'s (
) Android. Apparently somewhere along the way RIM forgot that Google and Apple each and every year deliver something that it does not -- actual
Or perhaps RIM was too busy courting business users with
Saturday morning cartoon characters
Analyst predict more destruction for the RIMdenburg.
[Image Source: Jason Mick/DailyTech LLC]
Regardless, if there's one thing that's clear it's that a
sale of RIM
is likely coming soon. It seems unlikely that RIM will survive to see its ever-slipping operating system arrive.
Investors will surely be eager to
salvage what little they can
from the company. The company does have some decent assets -- namely its large intellectual property portfolio, its recognizable business brand, and its superb physical keyboard mastery.
It would be relatively shocking if RIM is not put
on the auction block
before the year's end.
This article is over a month old, voting and posting comments is disabled
RE: freegin ouch!
6/29/2012 10:10:33 AM
You mean how Microsoft is bringing the Windows 8 kernel to their next phone OS so they can be the only smartphone devices to actually connect up properly to a windows domain through AD and inherit the permissions and security that come with that?
"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs
Analysts: "RIM’s Death Spiral" Hits the "Third Inning"
June 28, 2012, 1:05 PM
Quick Note: Details on RIM's L-Series, N-Series BlackBerry 10 Smartphones Leaked
June 25, 2012, 10:18 AM
Quick Note: Android 4.1 "Jelly Bean" Coming Next Week
June 21, 2012, 5:35 PM
RIM Begins Laying Off Employees, Won't Say How Many (Yet)
June 20, 2012, 8:44 AM
As RIM Waits on BB10, Another Manufacturer Bails on it
June 18, 2012, 3:29 PM
UK Teachers Want Parents to Cut-Off Their Children's Internet, Tablet Use at Night
April 17, 2014, 3:40 PM
Quick Note: Chrome Remote Desktop App for Android Launches
April 17, 2014, 9:26 AM
Report: Apple Plans to Integrate Shazam Song Finding Functionality into Siri
April 17, 2014, 9:15 AM
Bring Your Own Battery: LG Isai FL Likely is G3, First U.S. Quad-HD Android
April 16, 2014, 7:38 PM
Project Moonshine: Google's Plan to Flatten Android App Icons Leaks
April 16, 2014, 1:46 PM
Apple, Microsoft, and Major U.S. Wireless Carriers Embrace Smartphone "Kill Switch"
April 16, 2014, 10:08 AM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
A-10 Warthog May Live to Fight Another Day with Support from Lawmakers
April 14, 2014, 9:41 AM
EFF: NSA May Have Used IRC Botnets to Exploit Heartbleed for Last Two Years
April 14, 2014, 4:43 PM
Quick Note: Toyota Attempts to Erase “Boring” Image with ’15 Camry SE Hybrid
April 16, 2014, 11:36 AM
A Bug's Life: Female Cave Bugs Have Penises, Penetrate Males for Three Days
April 17, 2014, 7:20 PM
Latest Blog Posts
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
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information