Boston, MA, 03/28/2013 – Research In Motion Ltd (NASDAQ:BBRY) (Current: $14.44, Down by 0.84%)’ sales have not met market projections and the company has embarked upon a major cost-cutting program last year and its fourth quarter profit has shown a surprise rise. Blackberry has been facing tough competition from Apple Inc (NASDAQ:AAPL) (Current: $42.66, Down by 2.08%) and Android run smartphones and has been struggling to hold its stand. The turnaround plan had been initiated by the current CEO Heins. Last year 5,000 employees had been let off, private jets belonging to the company had been sold and the ten manufacturing units had been reduced to four.
Today the company has 12,700 employees.
New line of phones in 2013
It has an entire new line up of phones which are being launched with much fanfare worldwide. The Z10 had been launched in the U.S last week much after its launch in several other countries, via the American carrier AT&T Inc (NYSE:T) ($36.69, Up by 0.19%). The Blackberry 10 demand has increased and the cycle is now gaining momentum. Both the Z10 with the touch screen and the Q10 which sports a physical keyboard will have to perform really well in the market to keep pace with Apple and Samsung Electronics Co., Ltd (KRX:0059300 (Current: 1527, 000.00KRW, Up by 1.13%). Its first quarter performance is entirely dependent on its Blackberry 10 debut. Mike Lazaridis the co-founder and former CEO of Blackberry will be stepping down from his post and Thorstein Heins will be filing his shoes as the director and vice chairman of the company.
Heins said that the cost-cutting measures have definitely brought about a positive change in the financial results of the company but there has been a shift in culture as well. Blackberry now operates in a more efficient, innovative and faster manner. The main challenge is still that of reviving its sales. The company had estimated to ship out 6.9 million smartphones but could only hit the 6 million mark. The Z10 launch was staggered across countries and this has made sales data interpretation a little difficult. In the U.S, blackberry is still more of a corporate use device and AT&T Inc (NYSE:T) is optimistic about adding on an increased number of Z10 corporate customers to its base. The companies cash reserves have increased from $2.1 billion a year earlier to the current day $2.9 billion.