Despite abandoning it’s dual CEO structure and promising the
world a new software update in 2012, Research In Motion can’t make a
comeback. “RIM delays new BlackBerry launch as problems deepen” by Alastair Sharp of Reuters.com reports
the next BlackBerry update, BlackBerry 10, is delayed until next year. At this
point delays are typical for the company - the current software, BlackBerry 7,
was delayed by months and this is the second delay for the next update.
The company also announced, “that it would slash 5,000 jobs,
or 30 percent of its workforce” and “a steeper-than-expected quarterly
operating loss”.
The reaction has been to see this as the beginning of the
end of RIM. The quotes placed in the article by analysts:
“It’s like watching a puppy die. It’s terrible” –Matthew
Thornton, analyst at Avian Securities
“Wow what a disaster” – Edward Snyder, managing director of
Charter Equity Research
“There’s really no guarantee that once they come out on the
other side of BlackBerry 10 that it’s going to be something that people will
want” Eric Jackson, hedge fund manager at Ironfire Capital
By the time the new update comes around, it’s expected that
Samsung, Apple, and Microsoft would have release another phone - RIM is moving slow. Whether resources are not being used efficiently or resources don’t
exist, it’s a surprise RIM exists at the pace they’re moving. Apple and Samsung
are at the top of their game because by the time a phone is released they’re
working on the next one. RIM can’t expect investors and analysts to
wait another year in good faith that the update isn’t delayed again, the
company still exists, and that the new product can sell enough to bounce back
the company.
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