June 20, 2012

Layoffs Hit RIM

Zach Epstein, writing for Boy Genius Report:

"‘Our financial target is to drive at least $1 billion in savings by the end of fiscal 2013. Head count reductions are part of this initiative.’ The site notes that RIM laid off approximately 2,000 workers earlier this year as well, and this current round of job reductions could see as many as 6,000 cuts as RIM attempts to drive $1 billion in savings by the end of fiscal 2013."

RIM manufactures the Blackberry, the "it-phone" before Apple introduced the iPhone in 2007. It's been all downhill for Rim, a company in denial, ever since.

Rim will introduce their first smartphone, a direct competitor for the iPhone and the approximately six zillion Android clones, later this year. Microsoft and their partners will introduce the Windows 8 phone and tablets later this year, too, but the Windows 8 interface looks a lot more interesting and has generated quite stir lately. RIM, not so much.

RIM's main problem isn't so much a lack of product, though, but a lack of room for product. How many smartphones can the market support?

Late this year we'll likely have 1. new iPhones, 2. new Windows 8 phones, 3. more Android phones, and 4. a new RIM smartphone. I'm going to guess that come the same time in 2013, RIM will be near bankruptcy, Apple and Microsoft will be locked in an old-school battle across the entire mobile space, and the Android clone makers will be looking for their next big thing as that ecosystem declines.