There are so many consumers out there pulling for Research In Motion. The makers of BlackBerry have been in financial trouble for some time now, though many around the world keep hoping that RIM will eventually find its way out of tough times. When RIM announced that a new line-up of BlackBerry phones would be released during the first half of 2012, BlackBerry fans rejoiced. Now, RIM has officially stated that the phones won’t hit consumer shelves until the last half of 2012.
Things aren’t really looking up for Research In Motion. Even though the company attempted to save itself with the release of the PlayBook tablet, this tablet was (in this reviewer’s opinion) released before it was ready for consumer purchase. Now RIM is paying the price with losses and a financial future that isn’t looking promising. Surprisingly, RIM is still standing behind its PlayBook and planning on releasing those new BlackBerry phones when the time is right.
How Much Are RIM’s Profits Down?
Nearly every RIM-related headline you’ll read these days is a negative one. Most of these headlines point to dropping profits and disappointing numbers. But one has to wonder, just how bad are things for Research In Motion? Seemingly, a company that receives so much negative financial press as RIM does is on the brink of bankruptcy and not turning any real profit. However, this isn’t the case, though it is a common misconception.
The truth of the matter is that Research In Motion is still pulling in a decent profit. Currently, RIM reports that the company is making around $265 million in revenue. Sure, this number is down from $911 million, but it’s a sizeable profit all the same. Why all the losses? You have to consider the fact that RIM lost $485 million with the PlayBook tablet. Why was the tablet such a miss? Well, it all comes down to timing, it seems.
One can only estimate that RIM felt so much pressure to produce a tablet that the company released a product that was incomplete. The PlayBook doesn’t come with basic tools like email and an address book. That’s right, these basic things were missing from the PlayBook. Now, RIM has told PlayBook consumers that the company plans on upgrading the PlayBook, so that the tablet will include those missed out on features.
However, for some, it’s too late.
RIM’s timing doesn’t make any sense. Even though it’s a good idea to stand behind the PlayBook (despite losses) and update the tablet, it was a bad move on RIM’s part to wait until after the holiday season to roll out the updates. RIM plans on updating the PlayBook in January or March.
As such, the company has completely missed out on holiday shoppers who are looking for a new tablet purchase. With all the negative press that RIM has received, few shoppers will hop on the PlayBook train. If you’re in need of a BlackBerry update, you’ll have to wait until the end of next year to see whether or not RIM can pull its head out of the water.