Struggling BlackBerry maker Research In Motion will delay the launch of new phones deemed critical to the company’s survival and revealed its business is crumbling faster than thought. (June 29)
HEADLINE:
Rim shares pummeled over latest report
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CAPTION:
Struggling BlackBerry maker Research In Motion will delay the launch of new phones deemed critical to the company’s survival and revealed its business is crumbling faster than thought. (June 29)
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[Location – Date:] New York [Source:]AP Television [VO:]
[VOICE-OVER] TRACK#1
RESEARCH IN MOTION, THE STRUGGLING BLACKBERRY MAKER SAYS ITS BUSINESS IS CRUMBLING FASTER THAN THOUGHT.
RIM POSTED A LOSS OF $518 MILLION FOR ITS LATEST QUARTER AND SAID 5,000 JOBS WILL BE CUT – A THIRD OF THEIR WORKFORCE – BY THE END OF 2013.
SOME ANALYSTS SAY THE COMPANY IS TEETERING ON OBLIVION.
[SOT/:Jim Moorman, S&P Capital IQ equities analyst] “I think the problem is probably what they should do and what they are going to do might be two different things right now. Given what’s going on with the further delay of BlackBerry 10 it seems a lot more like they should just probably go ahead and sell the company, if there is somebody who would like to purchase them.”
ON TOP OF THE LOSSES, THE COMPANY SAID IT IS DELAYING THE LAUNCH OF ITS NEW OPERATING SYSTEM, BLACKBERRY 10, UNTIL AFTER THE HOLIDAY SHOPPING SEASON.
[SOT/:Jim Moorman, S&P Capital IQ equities analyst] “I think that they are committed to seeing BlackBerry 10 out into the marketplace but now that won’t happen until 2013 and now you’ve got basically a bigger divide that they’ve got to cover with an aging handset now going into the really tough and competitive holiday selling seasons.”
RIM IS NOW IN A TOUGH POSITION. NEW DEVICES FROM APPLE AND ANDROID ARE EXPECTED BY YEAR’S END.
THE DELAY PUTS THE FUTURE OF RIM AND ITS THE LONG-DELAYED OPERATING SYSTEM IN DOUBT.
SOME ARE QUESTIONING WHETHER LICENSING THE O-S IS A WAY FORWARD.
[SOT/:Jim Moorman, S&P Capital IQ equities analyst] “there are a lot of operating systems and there are a lot of carriers that are already using multiple operating systems and I will note that rim has tried this before with a licensed parts of their system, of their OS out and it hasn’t really done that well. With BB 10 will have to see.”
SHARES OF RESEARCH IN MOTION TOOK A BEATING ON THE NEWS AND ENDED THE DAY DOWN MORE THAN 19 PERCENT.
[SIGOUT/REPORTER, LOCATION, ASSOCIATED PRESS]
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