RIM delays launch of BlackBerry 10 phone
RESEARCH in Motion last night delayed the launch of a new BlackBerry phone the company is betting will save it.
The Canadian company said that the "BlackBerry 10" phone, which will be equipped with new features, will now come out next year rather than later this year.
The delay was the most alarming part for investors of a blitz of bad news that sent shares in the company down more than 20pc in after-hours trading on Wall Street.
RIM's first quarter loss of $518m (334m pounds) was five times bigger than analysts had forecast, as sales slumped by more than 30pc to $2.8bn.
"Wow - what a disaster," Edward Snyder of Charter Equity Research in San Francisco told Reuters. "From a numbers point of view it could hardly be worse and it's going to deteriorate from here."
The delay will put more pressure on the company to cut costs, and yesterday RIM said it will cut 5,000 jobs. That is almost a third of the employees at a company that made its name and fortune selling BlackBerry devices to executives, lawyers and bankers who wanted to check their email on the move.
Its dominance has since crumbled in the face of competition from Apple’s iPhone as well as devices that use Google’s Android operating system.
RIM said it shipped 7.8m BlackBerry phones in the three months to the end of May compared with 14m six months ago.
Even before yesterday's delay, analysts had voiced scepticism that the BlackBerry 10 would be able to win back market share from its competitors.