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'Blackberry 10 Timetable Wasn't Realistic'
 
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'Blackberry 10 Timetable Wasn't Realistic'  
 
RIM announced the delay of its new BlackBerry 10 OS phones, to cut 5,000 jobs.   
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Saturday, June 30, 2012 Times for the BlackBerry maker are simply getting worse and a recent announcement has added to the hysteria. According to an official announcement, Blackberry 10 has been delayed for next year and there could be a 5,000 jobs slash from the company. The delay is due to the ever rising adoption of iPhones and Android phones in place of Blackberry phones in North America. Blackberry 10 system was expected to save the Canadian firm from entering the phase of eternal rest.

RIM CEO, Thorsten Heins, who had earlier assured the new BlackBerry OS phones by this year, now has a different story to tell. “I will not deliver a product to the market that is not ready to meet the needs of our customers. There will be no compromise on this issue,” Heins said.

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On the job cut issue, Heins said that it is the part of a previously announced initiative to cut $1 billion in annual cost.

“It is necessary to change the scale and refocus the company. I fully understand the impact a workforce reduction of this size has on our employees and the communities in which we operate. I assure you that we wouldn't move forward with a change of this size if we didn't think it was critical for our future,” Heins said.

The losses incurred by the BlackBerry maker are globally visible. The company's results show that it lost $518 million, or 99 cents a share, in its fiscal first quarter, which ended June 2. Revenue fell to $2.8 billion, much below than expected at $3.1 billion. Also, the company shipped only 7.8 million BlackBerry smartphones this quarter registering a steep fall of 41 percent from 13.2 million last year.

“This was a challenging quarter for the company on many fronts. And I am not satisfied with the financial performance we are reporting,” Heins said.

BlackBerry 10 OS is seen as a life savior in the iPhone-Android flooded market. The new RIM system is expected to offer multimedia, Internet browsing and an ace app experience. Now, following the announcement, the system will be released months after the new iPhone expected release.

As per Heins, RIM will release fewer models this time including a Blackberry 10 phone with a physical keyboard and a touchscreen model too.

Colin Gillis, an analyst at BGC Financial, said that the delay news is far more worse and horrible than he had expected. Also, he added that he wouldn't be surprised if RIM heads to more layoffs.

“When a technology gets old, it's not a slow fade. It's a sharp cliff. There is very little market for old technology,” Gillis said.

Priyanka swami, EFYTIMES News Network


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