Blackberry manufacturer rim brakes downward slide

Blackberry manufacturer rim brakes downward slide

This keeps hope alive that the cornerstone of the mobile industry still has a future in a competitive market dominated by apple with its iphone and android phones from manufacturers like samsung.

In its second fiscal quarter (up to 1. September) financially better than in the previous three months. Sales increased slightly, the loss was reduced and the cash position was filled with cash. That was a welcome surprise for investors: the beleaguered stock shot up 14 percent in early trading in toronto on friday.

But the pure sales figures still look meager: RIM sold just 7.4 million blackberrys in three months. By way of comparison, apple sold more than 5 million units of its new iphone 5 in the first three days of sales alone. In the previous quarter, RIM had shipped 7.8 million smartphones and 10.6 million in the same quarter of the previous year.

There’s no question that RIM still has a lot of work ahead of it, german-born chief executive thorsten heins said at the company’s headquarters in waterloo. "The business is getting tougher and the challenges are getting tougher with the launch of new products," he admitted. "We are adjusting to price pressure in order to remain relevant in the market."At the same time, however, he referred to the changes that had been initiated in the company.

Heins cuts 5,000 of the 16,500 jobs to get costs under control. At the same time, it is pushing ahead with the development of the new blackberry 10 operating system, on whose success the company’s survival depends. The first smartphones with the completely redesigned software will appear at the beginning of next year. Until then RIM has to hold out.

Management made no secret of the fact that an operating loss would also be incurred in the current quarter in view of the lack of sales. In addition, RIM must spend a lot of money to place the new smartphones with blackberry 10 on the market. RIM’s most recent cash position was 2.3 billion dollars, slightly higher than three months earlier.

In general, the financial situation has eased somewhat: in the past quarter, the bottom line was a loss of 235 million dollars (182 million euros). In the previous quarter, the loss had still been 518 million dollars. Sales recovered slightly by 2 percent to 2.9 billion dollars.

Compared to the same period last year, however, this was a 31 percent drop in sales. At that time, RIM had also brought in a profit of 329 million dollars. Since then, things have gone downhill. It was the third quarter that the company posted losses.

At the beginning of the year, former siemens manager heins took the helm – and inherited a lot of problems. The launch of blackberry 10 had to be postponed several times because the system was not yet ready. Tests with network operators to begin in october.

Blackberrys have steadily lost ground to iphones and android. According to data from industry watchdog IDC, blackberrys accounted for only 4.8 percent of total shipments in the second calendar quarter. This was less than half of the previous year’s figure.

There are currently 80 million blackberry users. Many of them appreciate the typical keyboard. Especially in the emerging markets, blackberries still have many fans as entry-level devices, partly because the RIM devices do not require as much bandwidth as other smartphones. In addition, companies continue to rely on the e-mail service, which is considered particularly secure.

But the manufacturer is facing difficulties in both markets: on the one hand, the number of android phones in favor is increasing. On the other hand, microsoft is trying to win over corporate customers with its windows phone 8 mobile operating system. The iphone from apple is also becoming more and more widespread in companies.

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