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BlackBerry's slump continues

30 March 2012

BlackBerry manufacturer RIM posts huge losses and promise to go back to basics

It's a dark day for Canadian manufacturer Research In Motion (RIM) after its latest figures recorded a quarterly loss of $125m (£78m), with the BlackBerry-maker suffering a torturous year since it reported a $934m profit for the same period in 2011.

The dominance of Apple's iPhone as well as the popularity of Android handsets has led to RIM shipping 21% less Blackberry devices than they did the previous quarter.Overnight, shares in the company dropped a further 9%, a staggering 80% decline in 12 months.

The change in fortunes was matched by changes in the boardroom at RIM and Thorsten Heins, the company's new chief executive, announced that the manufacturer will be refocusing on corporate customers.Heins added that 'BlackBerry cannot succeed if we try to be everybody's darling and all things to all people.'

While attracting many youngsters with the cheaper handsets and free BBM messenger service, these customers weren't bringing in revenue yet RIM was having to develop the software to service these users. The manufacturer is keen to point out that it's not withdrawing from the consumer market altogether but we wouldn't rule out a sale of that side of the business if they could find a buyer.

Source: TechRadar

 

 

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