RIM forecasts loss; unsold inventory surges to $1B in value

RIM logoResearch In Motion has admitted that its fiscal first-quarter, which ends on June 2, is expected to show an operating loss as the BlackBerry maker continues to struggle in the smartphone and tablet markets. Amid the chaos, the company has called on JP Morgan and RBC to render assistance in the ongoing restructuring and transformation.

"The on-going competitive environment is impacting our business in the form of lower volumes and highly competitive pricing dynamics in the marketplace, and we expect our Q1 results to reflect this, and likely result in an operating loss for the quarter," said CEO Thorsten Heins in a statement.

The company has added two fresh executives, including new Chief Operating Officer Kristian Tear and Chief Marketing Officer Frank Boulben.

Heins also reiterated RIM's commitment to bringing $1 billion in savings by the end of the fiscal year, through "significant spending reductions and headcount reductions," though the company has yet to fully detail the number of employees that will be displaced.

Despite the promise of a turnaround, the company's unsold inventory is believed to be growing. Some analysts expect the company to write off over $1 billion in inventory, as BlackBerry handset and tablet sales continue to slide, according to a Bloomberg report.

RIM is relying on its upcoming mobile OS, BlackBerry 10, to power a range of new devices that it hopes will prove competitive in the marketplace. The company was late to release a touchscreen device, falling behind Apple and Google, despite having a significant head start in the smartphone market with its QWERTY-based models.

The company earlier this month showed off a development handset, however the next models to be sold to the public have yet to be formally unveiled. Developers inspecting the BlackBerry 10 source code uncovered seven different code-names that are believed to be associated with upcoming devices, the first of which are not expected to arrive until the fall.

Source: Electronista

Tags: RIM, smartphones

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Consumer group recommends iPhone 8 over anniversary model
 
LTE connections wherever you go and instant waking should come to regular PCs, too
 
That fiction is slowly becoming a reality
 
The Snapdragon 845 octa-core SoC includes the Snapdragon X20 LTE modem
 
Human moderators can help make YouTube a safer place for everyone
 
Google says Progressive Web Apps are the future of app-like webpages
 
All 2018 models to sport the 'notch'
 
The biggest exchange in South Korea, where the BTC/KRW pair is at $14,700 now
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
24252627282930
31      




Poll

Do you use microSD card with your phone?
or leave your own version in comments (4)