More Bad News for Troubled Research in Motion
Firm Faces Big Losses for PlayBook; PR Nightmare
There are lots of troubled companies out there amidst this ongoing economic recession. But it's rare to see a major firm struggle quite like Research in Motion (RIM), which in recent months has faced a barrage of trials and tribulations. Now, the firm is admitting it's losing millions on the failing PlayBook tablet while at the same time facing a PR nightmare involving two employees.
The PlayBook shipped way back in April and was supposed to be RIM's answer to the Apple iPad. With BlackBerry-integration, RIM hoped it would revive the smartphone while also generating interest in a whole new device. Unfortunately, it didn't happen that way -- people just aren't buying up BlackBerrys like they used to, and they're not interested in a tablet computer designed almost exclusively for BlackBerry owners.
As a result, sales have been dismal. The worst news came only a few days ago, when RIM admitted it was losing about $485 million on the PlayBook. In an attempt to revive interest, RIM recently knocked about $300 off the PlayBook at major U.S. retailers. Company co-CEO Mike Lazaridis says that has sparked interest in a device RIM remains committed to supporting.
"RIM is committed to the BlackBerry PlayBook and believes the tablet market is still in its infancy,” Lazairdis said. "We believe the PlayBook, which will be further enhanced with the upcoming PlayBook OS 2.0 software, is a compelling tablet for consumers that also offers unique security and manageability features for the enterprise."
But the bad news doesn't stop there. The company is also facing a real PR nightmare after two of the firm's employees were ushered off a plane bound for Beijing. It's reported they had a few too many drinks and caused enough trouble to force the carrier, Air Canada, to land in Vancouver. The airline was then forced to put 314 passengers in hotels for the night and wait out an 18 hour delay. It’s not yet clear exactly what happened, but reports say airline crew had to physically restrain the out-of-control men.
The employees, both Kitchener-area males aged 38 and 45, are facing fines of over $35,000 each and have been suspended by RIM.
Comments (0)