RIM Delays BlackBerry 10 Devices Until Late 2012, Releases Lagging 3Q11 Earnings

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It looks like RIM won’t be seeing much relief any time soon, as the BlackBerry maker said it will delay the release of devices featuring its new software platform until the later part of 2012. 

RIMThe announcement comes at an already difficult time for RIM, which was recently barred from using the moniker BBX for its upcoming platform. The company also just released its less than impressive earnings for the third quarter. In the period that ended Nov. 26, RIM’s net income dropped to $265 million compared with $911 million in the same time last year. Additionally, revenue declined to $5.2 billion from $5.5 billion in the same quarter in 2010. The company’s weak earnings resulted in a new seven-year low in stocks in after-hours trading. 

RIM announced in the beginning of December that it would be “recording a pre-tax provision” of $485 million due to unsold inventory of its BlackBerry PlayBook tablet. With its quarter earnings report released yesterday, it appears RIM’s PlayBook shipments have continued to drop, as the company shipped 150,000 during the quarter, compared with 200,000 in the second quarter this year. Yet, the Canadian company remains faithful to its tablet, with executives hoping a system updating, bringing native email and Android app support, will improve sales. 

In the current quarter, RIM has sharply trimmed its forecast for BlackBerry devices to between 11 million and 12 million, down from 14.9 million in the same period a year ago. 

Meanwhile, RIM has promised investors that it will work aggressively to cut costs, looking at its supply chain, partnerships, licensing opportunities, organizational and management structure and the number of products it releases, though it is not looking at reducing headcount, according to the company.  

Source: Wall Street Journal 



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