RIM Loses $518 Million, Slashes 5000 Jobs And More…. Stick A Fork In Them, They’re Done
Mark today on your calendar. Today is the day that RIM officially died. They announced (Warning: PDF) their Q1 numbers and they were stunningly bad. The company lost $518 millon and they will cut 5000 jobs. But that’s not the worst news. The worst news is that BB10 which was supposed to save the company is pushed back until next year. That delay quite frankly will kill the company as with no new product, there’s no incentive to buy RIM products. Here’s how Thorsten Heins, President and CEO sees things:
“Our first quarter results reflect the market challenges I have outlined since my appointment as CEO at the end of January. I am not satisfied with these results and continue to work aggressively with all areas of the organization and the Board to implement meaningful changes to address the challenges, including a thoughtful realignment of resources and honing focus within the Company on areas that have the greatest opportunities,” said Thorsten Heins, President and CEO. “Our top priority going forward is the successful launch of our first BlackBerry 10 device, which we now anticipate will occur in the first quarter of calendar 2013. In parallel with the roll out of BlackBerry 10, we are aggressively working with our advisors on our strategic review and are actively evaluating ways to better leverage our assets and build on our strengths, including our growing BlackBerry subscriber base of approximately 78 million, our large enterprise installed base, our unique network architecture and our industry leading security capabilities.”
The market clearly doesn’t have a good feeling about their prospects. As I type this, their stock is down 16% in after hours trading. Seeing as the stock has lost 90% of it’s value in the last year and half, I’m guessing it’s about to lose the most of what’s left in the next few days. That will likely lead to a sale of the company in whole or in part… Assuming that the company doesn’t die first.
As for me who has been using RIM products for the last 7 years, time to look at an iPhone or an Android phone as that’s clearly where the future lies.