RIM is at work perfecting the newest version of its smartphone OS BB10, but it seems it has run into a few snags. The company reported its fiscal activity for the first quarter of this year, amidst disappointing results and job losses, BlackBerry 10’s launch has been delayed until Q1 2013.
The current financial results picked up by MarketWatch.com note a 33% loss in revenue over the last quarter, dropping from $4.2 million to $2.8 million by the end of Q1. In an attempt to free up around $1 billion, RIM intends to let 5000 employees go, to allow them to focus efforts on the development of BB10 going forward.
RIM’s CEO Thorsten Heins stated, “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 organisation 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. ”
CEO Thorsten Heins also explained that BB10 won’t make it to market before the end of 2012 as was previously anticipated, he said,”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.”
The company has had a difficult time as Android’s rise to power, paired with the might of Apple’s iPhone has toppled the former king of smartphones. BB10 is supposed set to help reinvigorate the company and by proxy, the loyal consumer base with which the company relies on. However, a delay such as this could be a dangerous mistake for business that hasn’t always kept its eye on the ball in an ever-changing market. Nokia managed to refocus their efforts successfully at the end of 2011, with its move to Windows Phone, but has RIM missed the boat by making users wait until 2013?