BlackBerry 10 now coming in Q1 2013, RIM cutting 5,000 jobs

Ian Hardy

June 28, 2012 4:23 pm


RIM ended last year with 77 million BlackBerry subscribers, $18.4 billion in revenue (down 7% from fiscal 2011) and total shipments of their PlayBook tablet reached 1,350,000. It’s known that they’re in the midst of a massive transition and all employees are solely focussed on delivering thier upcoming BlackBerry 10 OS and BlackBerry 10 devices.

Today, RIM announced their Q1 Fiscal 2013 results and, as expected, not so good. Revenues were $2.8 billion, down a whopping 33% from the previous quarter ($4.2 billion), plus they reported an operating loss of $518 million. Shocking. RIM did manage to ship 7.8 million BlackBerry smartphone and also shipped approximately 260,000 PlayBooks.

Unfortunately, the report noted that the BlackBerry 10 smartphone launch is “now scheduled for Q1 of calendar 2013.” Curious about the reason? Well, it comes down to coding. RIM said their “software development teams have made major progress in the development of key features for the BlackBerry 10 platform; however, the integration of these features and the associated large volume of code into the platform has proven to be more time consuming than anticipated.”

In addition, more news was given about the ongoing layoffs. It was expected that they would total between 2,000 – 4,000, but today they announced that due to “increasingly competitive environment” 5,000 jobs will be cut as part of a “workforce reduction” strategy. Total savings will be about $1 billion.

Other notable takeaways from their results:

– They’ll streamlining the supply chain and consolidating the “manufacturing footprint from 10 external manufacturing sites to three.”
– Outsourcing parts of their Global Repair operations, including management of device level repairs
– Hired Steve Zipperstein as its Chief Legal Officer (former General Counsel of Verizon).

Thorsten Heins, President and CEO, said “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. 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.”

Source: MarketWire

  • Michael

    I just heard the news on the delayed release of BB10 on CNBC. Yikes! This is a real heart breaker… All of the sneak peeks seemed to suggest that they were close to a release…

    • Binder Jamieson

      rim?

    • RIM?

      RIM?

      (This is probably the last time you’ll see this)

    • Binder Jamieson

      RIP RIM

    • It’s over i guess

      The death of the Canadian tech sector.

      Very sad to watch.

      :(

    • STILL NO DATE FOR BB10

      NO FIRM DATE STILL!!!

      WHEN RIM WHEN??

      APPARENTLY NEVER!

    • Tom

      Who ever decided that they must have their own OS, rather then building on top of Android (like Amazon did), is responsible for the death of RIM.

      That decision cost them at least 18 months if not 2 years, and that is a lifetime in this industry.

    • NoMore3YrContracts

      It’s Official:

      Playbook at $99 is coming!!

    • NoMore3YrContracts

      Shouldn’t they call it BB13 if ist coming in 2013??

      Or is it BB10 because it will take 10 years to make??

      This BB10 better gives you a “happy ending” after presing “Send” if it comes in March 2013 And has to save the company formerly known as RIM.

    • NoMore3YrContracts

      Once it drops to $5 Justin Bieber will buy RIM and send you a curve with the purchase of one of his posters!

    • NoMore3YrContracts

      Once it drops to $5 Tim Hortons will buy it and will give you an 8530 with the purchase of 2 Double doubles and donuts ( They have to make space in the shelves for the Donuts! Donuts sell, the blackberries don’t!)

      Roll up the RIMM???
      Simply BRILLIANT!!

    • Theywillbepissed

      As a Canadian company, i will always support rim. But The truth is they are a horrible company. They took way to long to come up with a real answer to iphone and android, failed to innovate in the last 5 years, wasted time on the blackbery playbook (and didnt do that great of a job in my opinion) and now they have postponed the future product that could possibly save them (as they did with the playbook and os7). Now they’re cutting jobs left and right because of their stupidity for the last 5 years. And when they finally do get their bb10 os out, the lack of apps will be brutal, just as it is for the playbook

  • Steven

    I don’t know if they can afford to wait any longer. The smartphone market is pretty unforgiving.

    • robot-shmobot

      Perhaps they’re taking the time to get it into a top notch touch-based OS, rather than rushing a buggy, sub-par version out the door.

      Either way I am a little disappointed. On the other hand it gives the current-gen devices a little bit longer lease on life.

    • rim for the win

      with the state they’re in it’s better to wait and make sure it is a polished product than try to make an earlier release. They CANNOT mess this up, this is their final chance and they need to do it right.

  • Justin

    wow, Q1 of 2013..they say better late then never but in the case, late is just as bad as never

    • NoMore3YrContracts

      Doesn’t the world end in 2012 According to the Mayans??

      Adding RIM to the end of every joke punchline is not even (Insert RIM comment here)

  • Chris O

    With all the delays coming out of RIM lately, I think they maybe need to block Reddit.com at the firewall level. There seems to be some procrastinating or some sort of internal politics causing all these delays?

  • aregularonhofo

    RIM=RIP

  • J

    Wow avid BB user of 5 years now, they lost me… That’s along time to wait not to mention a million battery-pulls away. My Torch has crapped out, I’m now using my 9700. Looks like I’ll be getting the S3.

  • Darryl

    This is a huge blow! RIM really had built up a lot of excitement and momentum with BB10. The only criticism being that they would delay and sure enough! Huge blow and they will only compound it if they come out with a dual core device with poor battery life!

  • Fromanda Bolz

    RIM
    RIP

  • what

    As disappointing as this is, and as much as I know the media is going to rip on this… I just want them to release something amazing, and if that means they need more time then I’ll give them more time. Better to have competition and choice than to wish death upon them for no good reason.

  • kenypowa

    RIM should be renamed to RIP.

    • NoMore3YrContracts

      Ha!

      RESEARCH IN PROGRESS = RIP!

    • Me

      Research In Passing.

  • JCEE

    I had faith that RIM would come back eventually… maybe not to what they were but they would at least survive.. But with this news I have lost faith … RIP RIM you’re done.. the past 3 years has been nothing but delays and disappointments, overpriced junk.

  • Ryan

    I thought they’d be fine with October, about the same time as Windows 8. But my years of RIM optimism is taking a big hit with this delay.

  • Acco

    5000 jobs cut. That’s a very significant amount… :X

  • Andrew

    WOW! I am big supporter of RIM, but this…. I am almost at a loss for words here. They have managed to “Pull a Palm”. Created a potentially great device, but their inability to actually bring it to market in a timely manner killed them. They should have take the 2 billion dollars they had socked away, used it to retain some of the software developers they fired and got BB10 out for September. They didn’t, and they lost the battle for mind share as a result. iPhone 5 launching end of Summer, they won’t be able to compete.

    I am not a CEO, but god damn this strikes me as being a huge mistake on their part. I still hope they can pull it out of the fire, I just don’t see how they will.

  • OgtheDim

    Dead.

    Supported the potential until now.

    Q1 of 2013 kills them off.

  • uwaterloo student

    I am so proud to live and study in Waterloo. RIM represents all of us.

  • Kimberlee

    RIM you are now DONE!!!!!

  • goozy

    This is a sad day for all Canadians.

    • Me

      Not really.

    • Bob

      The sad day for RIM was years ago, when it became clear that RIM would only loose market share down to 0 because of Android and iOS.

      Time to end the agony. RIM is dead and BB10 won’t save them.

  • Artax

    I’m really sad to hear this…I hope they can somehow get BB10 faster and get this out for Christmas. I like what I see so far. I guess it is better to ship when its ready as opposed to what they did with the Playbook (which I have and love).

  • farmerpete

    By Q1 2013 they will have been purchased by someone looking to stock up on patents. Currently at 7.55 a share after hours

  • wow

    five thousands feet up their asses. wow

  • Mike

    Last year RIM blamed on availability of hardware parts n this year it’s software related for BB10 delayed.

  • Acco

    I don’t think you can just come back from something like this. Q4 2012 is the *essential* holiday season. It was how they’d have possibly managed to regain some relevance by stuffing new BB10 devices into people’s stockings. Alas, they’ve missed this opportunity, and I don’t know what kind of route they can take from now on.

  • NoWonder

    Job cuts were expected, but the BB10 delay again? Wow, this really puts a huge dent in RIM’s credibility and the confidence of Blackberry supporters. This OS first supposed to be released at the beginning of this year. Then by the fall. And now potentially not until Spring 2013??

    OS release delays can happen with any company, but this is a huge one. In RIM’s current position this is a huge blow to them. People that were looking forward to BB10 in just a “few more months” now are being told to wait maybe up to 10 more months. That’s an eternity with mobile technology!

    I want to see them succeed, but they’ll almost definitely lose a significant amount of customers because of the delay.

  • Sean

    RIM is now dead. They are sooooooo screwed up and won’t be able to go back. Missing the holiday season is a big issue. Sad day for us Canadian’s but that’s how it goes with shitty companies. Go Android!!!!!

  • OgtheDim

    So all the rumours about September phones? The various things we’ve seen this week on here?

    What the heck is all that?

    So much PR before the stock falls?

  • Mark

    I was very optimistic when I saw the BB10 leaks and screen shots but with this news I see 2 things, 1st: W8 Mobile will be out and attempting to bring in iOS and Android users and by the time Q1 of 2013 hits, RIM will be too far behind for most people to look at a 4th updated OS. 2nd: I believe that RIM stock will fall further and with rumors of buyouts in the past someone may step up and acquire RIM for BBM, patents, QNX, or some other reason as it will be more affordable to do so.

    In business, once you delay a product more than once it scares investors into selling off stock and devaluing a company to the brink of either collapsing or ripe for a buyout. They are trying to save money by laying off employees but that only makes it easier for other companies to acquire as what they would have done this as well but RIM has already completed it for them.

    I think what they did was, leak something that looked promising, while knowing they weren’t ready, in attempting to keep interest high, until they were actually ready to launch.

    I was really hoping they would get BB10 out soon!!

  • Big Ang

    Wow…. I was just telling a friend that this fall would be a crucial time for both RIM and Windows Phone to see who can grab the #3 spot, with both BB10 and WP8 scheduled to come out. I guess I don’t have to wait until the fall to find out.

    RIM, you’re on a burning oil platform. It doesn’t matter if you come out with the best OS ever with BB10, because by next year the customers will have been enjoying either the Apple, Android, or even the Windows ecosystem for some time.

    My prediction – RIM gets bought out by Microsoft, Apple, or Google in order to get a stronger foothold into the enterprise market. If someone other than Microsoft buys RIM, then MS might as well bow out as well. If Microsoft buys out RIM, then they have a chance to make it a 3-way horserace.

    • Keith

      RIM’s server-centric enterprise model is useless technology or they would been bought already. RIM’s market cap is already lower than what Microsoft paid for Skype.

  • Reggie Noble

    These BB10 devices will have to be the greatest mobile devices that we’ve ever seen, because if they’re not, RIM will be dead in North America and Europe for sure now.

    Even if their new BB10 device is amazing, Android, Apple and even Windows 8 will counter most of BB10’s new features within months for the release of BB10.

    I’ve never seen such slow progress in mobile device development ever.

  • Zeake

    GG rim

  • Zeake

    Nerf Google, android OP! lol

  • MUJO

    WE WILL BE BACK
    MUJO FROM RIM

  • ELNY

    And in other news, RIM stocks plummet below $10/share. My goodness, put a fork into these guys, they are DONE.

  • NoMore3YrContracts

    To the Caption in the picture:
    “I’ll be back”
    -Have to borrow a real phone!
    -Have to pick up a pink slip (too soon, I know)
    -Getting popcorn, watching “lord of the RIMs”
    -RIMember November, whan I had a job?

  • dave (former blackberry owner)

    “The End”

  • boris

    RIM is dead. Long live Google!

  • arid

    Research is no longer in motion. With ios6/iphone5, jellybean/new nexus device, and wp8 and new lumias this fall no one is even going to remember blackberry

  • anon

    Waited a long time to get my hands on a BB10 powered Blackberry, my Torch is losing its flame, the S3 it shall be, and one day soon, BBM will be a cross-platform app.

  • OgtheDim

    He actually said in the conference call that RIM would concentrate on the Bring Your Own Device trend?!?!?!?!!

    Clueless

  • Tom

    Glad i sold my stock this morning it lost me enough money already. Bb10 is officially vapourware

  • RIM_RIP

    do they have enough money to haemorrhage till Q1 2013 or are we going to see another canadian bankruptcy story ?

  • juneboy

    microsoft: just announced windows phone 8, surface tablet etc.

    google: just annunce jelly bean os, a new tablet, htc one series & sgs iii recently released, and numerous other news at i/o.

    apple: announced ios 6 recently plus othergood news at wwdc 2012.

    rim: LOL

  • TyroneLT

    In the words of David Chappelle while acting as Prince “Game…….blouses……” (For Android and Apple). RIM is done.

  • Petephone

    Basillie spent too much time and effort trying to buy an NHL team couple years back, like Buffet once said :
    “stick to products and people you know”.
    Unless they can pull a rabbit out of a hat….. Good luck!

  • superfly

    RIM it’s finally over. Why would you put the last nail in your own coffin. IBM is buying you right? purposely killing your share prices so that you can be bought out.

  • rgp905

    They needed to leverage their current user base to even have any hope of surviving. Any current BB user would have been a given future customer of BB10. A October/November launch would have been pushing it. Q1 2013 is too late. Customers need to update their hardware and at this point no one will buy a BB7 device unless they give them away. By the time they launch BB10 anyone needing a handset will either have an IPhone 5, SSG3, or the next Nexus handset. At this point BB10 would need to enable time travel to sell well. This from a 10 year BB user.

  • David

    I was so confident and anxious for a september/october release of BB10. I really thought it would change things around for them…but it’s going to be released in Q1 of 2013?! I’m due for an upgrade this summer, and I don’t think I can wait that long…RIP rim, you greatly impacted the mobile industry but now I believe it has come to an end.

  • kardi

    I’m done with RIM.
    I was so looking forward to possibly getting a BB 10 device this year. This news just put the final nail in the coffin. RIM will officially lose me as a customer. RIM is basically giving Apple and Android/Google more customers, more money, more market share DAILY!

    Apple is coming out with their iphone5 this year that will totally change the game. (in no way am I a apple fanboy, I’m a realist) How does RIM expect to bounce back? Sadly, I think the one time beloved company is done. It’s a shame!

  • Proclaimer

    Rim is the biggest disaster since Nortel.

  • jason4

    Another one bites the dust. iPhone 6 baby…………………………………………….

  • Vic

    Mark June 28, 2012 as the day RIM is officially finished as a company. Investors, sell all your stock, and flee this company

  • jason4

    I guess selling crap phones to the losers at crackberry can only take you so far….. lame.

  • ordinaryjoe

    What ? Time to sing ?

    -Fat Lady -

  • AJW

    Sad sad sad day. BB10 looked like it had a lot of promise and I was willing to give it a fair shake, myself being tied to Android for the past 2 years.

    Well at least I snagged one of the last 16 GB Playbooks which will soon become a collector’s item!

    RIP RIM, you had your chance.

  • JaymmerMan

    wow… I’ve been a huge supporter of RIM for business customers. After this announcement I’m going to have to officially pull that support. Q4 2012 was one thing, Q1 2013 is completely different

  • Tomatoes

    $49.99 Playbooks and Kindle Fires! Thanks Google!

  • Jack

    There are a lot of really tasteless comments in this thread.

  • Dave

    This scumbags company has been ripping me off with that stupid playbook. It took more than 5 min just to start and nothings but those fart apps. Burn in hell RIM!

  • marion

    We anticipate to be released Q1 of 2013? That’s still not a firm date. I can’t believe this. It is unfortunate that they couldn’t keep up and release this fall for the school/holiday rush. They just lost me as a customer

  • Jordan

    5000 jobs gone, that’s so sad. Any executives taking a pay cut? I doubt it. Disgusting.

  • Chew

    I think it makes a lot of sense for MS to buy RIM and incorporate the elements that work into WP8 – making some sort of Windows Phone Blackberry Edition that utilizes the secure emailing and such and also offering WP’s modern intuitive UI and growing app support. Also, WP has some enterprise friendly features already like Office integration, so it would really build on strengths.

    If done right it would be the ultimate enterprise solution. IF…

  • GENERAL WONG

    RIM is the next Nortel.

    And for some reasons they are both from Ontario.

  • Dan

    Talk about the slow death of a company… damn.

  • mike

    Perhaps their waiting to release a blackberry that will have quality for one and no problems. The bb 9900, 9790, 9360 are utterly cr@p blackberry’s. The batteries drain do fast and also heat up after 5 minute of use. Their sales are decreasing hugely because everyones returning these newly released bb’s cause of issues with them. And RIM took a big hit with complaints, so their probably taking a long time to release a top notch non issue blackberry 10 so once they do release them there won’t be complaints.

  • BB10EXPERT

    GOOD NIGHT SWEET PRINCE

  • Omis

    They are cutting workers? That’s a shame. I was walking by the Pride festivities and I know a lot of people there were hoping to get RIM jobs. They’re going to be so disappointed.