Research in Motion (RIM) said early Thursday that the new lines of BlackBerry phones will have a delayed launching until late 2012. The new phones are deemed important for asserting the company’s position in the smart phone and tablet market. One of RIM’s co – CEO, Mike Lazirdis said that BlackBerry 10 models will require a highly integrated chipset which will not be made available up until the middle of next year which is also one of the reasons why RIM is expecting to ship them late in 2012. The news about the delay was disclosed during a conference call with analysts.
Analysts stated that the future of RIM to regain their stability in the market highly depends on the upcoming software platform. The company has to come up with a highly attractive BlackBerry model since a huge share of U.S. market have already moved on to the now more popular smart phones with touch screen capability like iPhone and several competing phone models that operate using Google’s Android platform. Due to the delay, RIM is also expecting a huge decline on sales for the holiday quarter which is further proof that the company is struggling a lot just to keep up with the competition. And in the Apple dominated tablet computer market, RIM is also having a hard time finding a viable niche for them move in. On the other hand, BlackBerry is enjoying a huge success overseas even if their U.S. smart phone market share declined significantly to ten percent this year from 44% in 2009 according to a market research group NPD Group. In extended trading last Thursday, the company’s stock also fell seven percent.
The delay for the launching of BlackBerry 10 phones is an unwanted addition on the series of stumbling blocks for the once mighty Canadian mobile phone company. First, RIM has to sell their PlayBook tablet at huge discounts because the market is not reacting to it as they expected. Recently, millions of BlackBerry users have experienced widespread outage forcing BlackBerry RIM to come up with something to attract more clients. According to RIM, their net income suffered up to 71 percent loss since they have to take a huge accounting charge for their PlayBook tablet.
An analyst at Jeffries and Co. based on New York said that if RIM finally disclosed that they are only planning to ship not more than 12 million BlackBerry phones in the present quarter, then RIM has to make sure they are able to launch their new BlackBerry phones as fast as possible to compensate for their lost market share.