Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

RIM delays new phone launch until end of 2012

BlackBerry maker takes a £312m hit on PlayBook tablets

Article comments

RIM will not start selling phones with its new software platform until the "later part" of 2012, it has announced, as it took a $485 million (£312 million) inventory-related charge on its PlayBook tablet.

Net income in RIM's third quarter ended November 26 dropped dramatically to $265 million, compared with $911 million in the same period last year. Revenue declined to $5.2 billion from $5.5 billion in the same quarter in 2010. RIM shipped 14.1 million phones during the quarter, up from 10.6 million in the second quarter this year.

Shipments of RIM's PlayBook tablet continue to drop. The company shipped 150,000 during the quarter, compared with 200,000 in the second quarter this year. RIM has recently launched new promotional programmes aimed at boosting sales, and those efforts have helped it work through most of its inventory, said Mike Lazaridis, co-CEO of RIM.

RIM committed to PlayBook

However, the increased sales from those promotions won't be reflected until the fourth quarter. In the meantime, the company took a $485 million charge related to PlayBook inventory in the third quarter.

Despite those challenges, RIM remains committed to the tablet market, executives said. The market is in its infancy and it makes sense to be in both the smartphone and the tablet markets, Lazaridis said. In addition, RIM hopes that when it releases an update to the operating system, which will include native email and a player for running Android apps, sales will improve.

The company also took a $54 million charge related to the service outage it experienced during the quarter.

Once the predominant developer of smartphones used in enterprises, RIM has failed to keep up with new competition from Apple, Google and others. It is preparing an overhaul of the software that runs on its phones but must convince people to buy its current generation of phones until that new platform is released.

New mobile OS

That is proving to be a challenge already. The company expects to ship between 11 million and 12 million phones in the fourth quarter, down from 14 million in the third. But RIM has now decided to push the launch of that new platform back.

While RIM previously hasn't been specific about when it would launch the new phone platform, many observers had expected the phones to appear as early as the first quarter of 2012. Now RIM says it won't ship until the "later part" of 2012 because the company has decided to use a more advanced chipset that will offer improved power efficiency. The chipsets won't be available until the middle of the year, according to RIM.

In the meantime, RIM promised investors that it would aggressively work to cut costs. "I want to reiterate our commitment to completing this challenging transition. We'll leave no stone unturned when evaluating the business," Lazaridis said.

The company is looking at its supply chain, partnerships, licensing opportunities, organisational and management structure, and the number of products it releases for places to cut costs or improve performance. It is not looking at reducing headcount, however, they said.



Share:

More from Techworld

More relevant IT news

Comments

maxmz02 said: RIM has strange culture and political environmentIn RIM if a new hired person figure out major problem and introduce efficient approach both manager and his buddy group member will proof their wrong approach works just like someone point out driving a car is right way pushing a car is wrong way then both manager and his buddy group member will hate you and proof that 3 person can also move the car by pushing it cheating email will be sent to some vice president saying like see the car moving pushing a car is a natural part of the process in order to deny contribution of introduce skill of drive a car thet deny merit of driving a carIt is very strange company culture and strange company political environment it promote stealing and cheating skill RIMs management may be a typical instance in MBA courseThis culture deny or steal hardworking team members contributioninnovation generate strange political environment destroy RIM



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *