Research in Motion, once the blockbuster powerhouse in smart phone technology, on Thursday announced they are delaying their comeback next-generation BlackBerry 10 platform and firing 5,000 employees to help keep the company afloat after posting a $518 million loss.
In a critical time of harsh competition from both Google Android and Apple iOS platforms, RIM is struggling to compete with its old technology. Research in Motion's days are quickly numbered and here are some reasons why.
1. "We screwed up, so lets make a big splash"
The company is still stuck in the mindset that if they keep waiting to produce that perfect user experience and that perfect BlackBerry, users will come back to the platform. The only attraction for BlackBerry to the consumer side is their BBM messaging service, which is quickly being overrun with Apple's iMessage, and a slew of very popular multi-platform chat applications such as WhatsApp. On the business side, BlackBerry's virtual machine operation system is very appealing for security specialists, however, Apple and Android have caught up very quickly in recent years.
2. Will pay $$$ for Apps
RIM is so desperate for developers that they are willing to pay each developer who makes $1,000 on their app a $10,000 grand prize. With the little cash reserves in the bank (less than $2 billion), RIM can ill afford to bribe their way back into the Apps game. With their new BlackBerry 10 platform, all the apps will have to be reset and developed from the ground up to fit the new QNX operating system.
3. RIM can't design
The above pictures show the 2008 model (left) and the 2012 model (right). That's all RIM could come up with in five years? Every new Apple iPhone has a completely different industrial design, with their iPhone 4 being an industry game changer in terms of build quality and engineering excellence. Every BlackBerry has been the same, which sells to business partners but not to consumers, who care about creativity. 75% of Bold is old goes the saying.