RIM could be forced to writedown $1 billion as inventory increases
We do know that Research in Motion (RIM) is going through a tough time since about a year but it seems that the Lady Luck is in no mood to favour the company. With crashing stock prices and sales of devices, the in-house supplies of the company are increasing at a faster pace at about 18%.
This data has been compiled by Bloomberg and does not include the stock tasting duct at carriers and other retailers. So this is indeed a cause of worry for the Waterloo based tech giant.
This 18% of inventory costs the company and could force a huge write-down of about $1.03 billion, which is up from $618 million a year earlier. This could be a big blow to the company as its device are not selling at all, thanks to Google’s Android based smartphones and Apple’s iPhones.
And how can we forget the BlackBerry PlayBook which is not selling either with almost a 50% price cut earlier this year. With BlackBerry 10 arriving only by the end of the year, it is truly going to be a hard time for the company in the next few months. And if BlackBerry 10 fails, then we all can guess what would happen to the company.
BlackBerry is also looking at cutting down about 2000-3000 jobs to bring down the operational costs and save a few millions to cover up the losses. But would this help? We’ll find out in the coming months.