If you’re like me and you’re waiting for Research in Motion’s (RIM) Playbook to go on a mega fire sale (because the company is slowly sinking), we may soon be in luck!
Last quarter, RIM’s mountain of unsold Blackberry devices and Playbook tablets shot past $1 billion in value, further revealing the struggles that the Canadian company is experiencing. In comparison, Apple saw its inventory decline by 11 percent in the period during the previous quarter.
As reported by Bloomberg, RIM’s total inventory grew to $1.03 billion, which is up from $618 million in the same time last year. This change is double that of what the company’s inventory was in 2008 and the company’s over $1 billion in inventory does not include the unsold inventory that retailers and mobile carriers are holding around the globe.
In December 2011, RIM had to take a $485 million hit to write down its unsold devices. The company’s Playbook tablet then went immediately on sale and prices dropped to as low as $199. RIM is expected again to write down its current $1 billion inventory.
“Clearly this stuff isn’t selling,” said Monga, who maintains a buy recommendation on RIM’s stock in anticipation of the company being sold. “Despite all the writedowns they’re taking on the inventory, these inventory levels are not dropping.”
RIM is in troubled waters. The company has been in headlines numerous times in recent months and recently announced a layoff of its workforce that will see upwards of 3,000 people without jobs.
The company is now hoping its new upcoming operating system (OS), Blackberry 10, will revive sales. However would-be Blackberry customers are holding off on purchasing current models in anticipation of the new OS.
Adding insult to injury, Apple is preparing its annual World Wide Developer’s Conference (WWDC) in June where the launch of iOS 6 and other anticipated innovations are expected. A new iPhone is then expected to be released later this fall.