Money Matters - Simplified

RIM delays launch of Blackberry 10

RIM announced that the launch of BlackBerry 10 will be delayed to the first quarter of next year.

The latest decision of Research In Motion Ltd (RIM) to postpone the launch of its new phones considered as imperative to the company's survival, suggests that the Blackberry manufacturer is degenerating faster than thought.

The announcement to delay the launch of Blackberry 10 until after the holiday shopping season comes just days after the Canadian company announced worse-than-expected last quarter results.

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

Delay ‘dire and problematic’
Blackberry is facing dwindling demand as consumers shift to the more attractive options like the iPhones and Android phones. The Blackberry 10 will offer multimedia, Internet browsing and apps experience which are a rage these days.

Heins had promised to unveil the Blackberry 10 this year, however has failed to do so.

“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.

Industry experts aver that the delay in launch of the Blackberry 10 as dire and problematic.

“The biggest disappointment is the delay of the BlackBerry 10. It's extremely challenging for them to turn around the business when their new smartphone is launching that late,” said Michael Walkley, an analyst with Canaccord.

The besieged phone maker has also announced that it will cut 5000 jobs. The job cuts will enable the company to cover part of its planned cost cutting target of $1 billion this year.

“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,” averred Heins.