The bad news for RIM: it lost nearly £130 million (adjusted) last quarter. The worse news: it’s now letting 5,000 employees go, on top of the 2,000 cuts that had been previously announced. The very worst news: its BB10 operating system—and lost hope for relevancy—has been pushed back until next year.
This is an unmitigated disaster.
Look, companies lose money all the time. It’s rough economy, and a competitive space. It happens. But what’s crucial during times like that is to have a clear way out. The only chance RIM had at surviving as a standalone company was for BB10—which remains promising, if not revolutionary—to lead a BlackBerry renaissance. Waiting until this fall, as had been previously indicated, was pushing it. Waiting until 2013 is suicidal.
Then combine that with the revelation that RIM’s cutting 5,000 jobs, making 7,000 total in the last two months. Add in net income losses in the hundreds of millions, revenue down by 33 per cent. BlackBerry PlayBook shipments of 260,000. An app store with just 89,000 offerings—less, even than Windows Phone 7, which isn’t even two years old.