blackberry BlackBerry 10 delay drives analyst fears of RIM bankruptcy

Research In Motion (RIM) could face bankruptcy, analysts say, after delaying the release of its BlackBerry 10 mobile operating system and cutting staff numbers by 5,000.

Research In Motion (RIM) could face bankruptcy, analysts say, after delaying the release of its BlackBerry 10 mobile operating system and cutting staff numbers by 5,000.

 
The Canadian firm, which was once a dominant player in the burgeoning smartphone market, reported abyssmal quarterly results, with losses of $518 million, several times more than analysts predicted. This sent shares down by more than 20 percent and lead to some brokerages cutting their price targets by up to 50 percent.
 
RIM had originally planned to release BlackBerry 10 this year, but fans of RIM will need to wait until early next year at the earliest to get their hands on a new smartphone powered by the operating system. The delay comes at a bad time for the company, as it was this software and the range of devices built around it that were largely expected to save the company.
 
blackberry BlackBerry 10 delay drives analyst fears of RIM bankruptcy
 
Nomura Equity Research believes “the company will eventually fail” if it continues its current operational plan, and even BlackBerry 10 will not help it make a successful turnaround.
 
Analysts at Citi said the company “could run out of cash” and also expressed doubt about the viability of BlackBerry 10 as the saving grace many expect it to be. Cannacord Genuity agreed on this point, suggesting that RIM's only hope would be to sell. However, Baird Equity Research believes there are no buyers interested in the plummeting firm.
 
The delay has also forced RIM to implement new cost-cutting measures, including plans to axe 5,000 jobs, which amounts to 30 percent of its workforce. With fewer employees and the threat of bankruptcy looming ever closer, there are tough times ahead for the BlackBerry maker.
 
Source: Reuters