As the mobile portable media world is ruled by iOS and Android devices it is getting harder and harder for Research In Motion to get back in the business game and it seems that things won’t be getting easier for them. After RIM announced that it had hardware excess worth of more than one billion dollars, the Canadian hardware Company Celestica said it is going to wind down its manufacturing for BlackBerry devices.
The business world was ruled by BlackBerry phones, with large companies believing that RIM is providing them with the best phones used for business purposes. However in recent years things changed for the worst, when Google came up with Android and made the web integration for mobile devices that much smoother.
Only in the last year more than sixty percent of large companies stopped using BlackBerry as a main business mobile phone for their employers, most of them choosing to supply them with HTC’s or other Android using portable devices.
Even with the recent hype created around the new Blackberry 10 people are skeptic that things will turn out for the best, the general opinion being that RIM has dug itself a hole from which they can never get out. The disappointment in BlackBerry fans got even greater, when the phone was announced, because one of the key features separating the BlackBerry from any other phone – the physical qwerty keyboard was removed, leaving the phone’s design with noting more but a OLED touch screen, just as any other smart phone released in the previous couple of years on the portable mobile media market.
Research In Motion is planning to release their new addition to the BlackBerry family late this year. But with the Apple’s new iPhone and even a bigger variety of Android-using phones expected to be released, the market won’t give great opportunity for RIM to shine.
The official statement of Celestica Inc. was released 18th of June, stating that the wind down will be in a period of three to six months. They calculates their restructuring charges to be less than 35$ million. With anticipation of more than one and a half billion dollars, they expect net earnings of 250$ million. However the details around the partnership between the two companies will be discussed over in future conference call, which means that more information is soon to be released.
As people are not willing to stay true to BlackBerry, but rather change to either iPhone or one of the many Android devices on the market, things are worsening every second for Research In Motion. Will they survive and rise from the ashes like a phoenix with its new additions to the BlackBerry family or will everything collapse? This is a question only time can answer, but with Celestica stopping the supplement of hardware, RIM will have to start looking for new partners. The only true chance for RIM to get back on the market is the new BlackBerry 10, so how will things turn out – we just have to wait and see.