Revised losses reported by RIM surpass expectations
RIM Announces Organizational Changes and Upcoming Launch of BlackBerry 10
Research In Motion (RIM), the company behind the BlackBerry brand, has announced a series of organizational changes aimed at driving improvements across the company. The changes come as the company prepares for the launch of its new operating system, BlackBerry 10, which is on track to be released in the first calendar quarter of 2013.
In a statement, RIM CEO Thorsten Heins confirmed that the company is progressing on its financial and operational commitments, but emphasized that there is much more work to be done. Heins also expressed confidence in BlackBerry 10, stating that the platform has a 'clear shot' at coming third behind rival mobile platforms iOS and Android.
During the recent quarter, RIM sold 7.4 million BlackBerry smartphones and 130,000 PlayBook tablets. The company's subscriber user base has also reached 80,000 users. However, RIM is under pressure to deliver results during the fiscal year due to the competitive environment, lower handset volumes, increased marketing expense for BBX launch, and pressure by customers to reduce monthly infrastructure access fees.
The financial results for the quarter were not as strong as hoped, with RIM reporting a 31% decline in revenues and a 170% drop in net income. The company's net loss for the quarter was $235 million, down significantly from a $329 million profit a year ago. Despite this, RIM's share price rose 18% following the news of the financial results.
BlackBerry 10 will bring a redesigned user interface based upon two new features, BlackBerry Hub and BlackBerry Flow. BlackBerry Hub consolidates all of a user's information in one place, including emails, messages, and notifications from social media and other apps. BlackBerry Flow allows users to easily switch between apps by swiping their fingers across the screen.
One of the key benefits of BlackBerry 10 is BlackBerry Enterprise Services 10, which simplifies the process of provisioning new devices on BBX. This will make it easier for businesses to deploy and manage BlackBerry 10 devices, potentially attracting a larger corporate customer base.
As RIM moves forward with the launch of BlackBerry 10, Heins reiterated that the company 'still has much more work to do.' Heins also took the opportunity to unveil new features of BlackBerry 10, expanding beyond traditional mobile communication to include a range of productivity and entertainment tools.
With the launch of BlackBerry 10 just around the corner, it will be interesting to see how RIM fares in the highly competitive mobile market. The company has faced challenges in recent years, but with a new operating system and organizational changes in place, there is hope that RIM can regain its footing and compete with the likes of Apple and Google.
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