BlackBerry 10 Delayed, RIM Cuts 5,000 Jobs

RIM has delayed the release of BlackBerry 10 – the first handset loaded with the OS was expected to ship later this year, but has now been pushed back until Q1, 2013. The delay, according to RIM president and CEO Thorsten Heins, is due to the company not being willing to “compromise the product by delivering it before it is ready”.

The delay was announced along with RIM's results for Q1, 2012. The company reported a net loss of $518m (£334m) – as opposed to a profit of a $695m profit over the same period a year earlier. Meanwhile, revenue fell 33 per cent from the prior quarter, down to $2.8bn from $4.2bn.

RIM also confirmed the cutting of 5,000 jobs by the end of the fiscal year 2013, which it had warned of last month. Following the announcement, shares in the company fell 18 per cent to $7.47.

“Our first quarter results reflect the market challenges I have outlined since my appointment as CEO at the end of January,” says Heins. “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.”

It's not a pretty picture, and having to push the release back doesn't bode well for RIM's future either. Following a deluge of bad news over the last 12 months, BlackBerry 10 has been seen a potential light at the end of the tunnel for the company – something with which RIM clearly agrees, with Heins pointing to the release as “our top priority going forward”.