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Economist: Research In Motion Layoffs Not Because Of Economy

IRVING (CBSDFW.COM) – With Apple's i-phone, Samsung's Galaxy, and other android-based smartphones all the rage, fewer people want a Blackberry.

Jim Bricker co-founded and is CEO of OrderMapper, a Dallas company that makes apps, but not for Blackberry's.

Bricker says, "They haven't really innovated. They're still using technology from several years ago."

Now, Blackberry's maker, Research in Motion, whose U.S. headquarters is based in Las Colinas, is carrying out layoffs announced last June.

The company says employees are losing their jobs, but won't confirm it let 200 people go.

Economic experts, like SMU professor Mike Davis, say the layoffs aren't due to a troubled economy.

In fact, Davis says, "It's part of having a vibrant economy, you're going to have a lot of failures along the way. I don't mean to be callous, it's tough for the people involved, but its actually what you want your economy to be, you want it to be dynamic."

Besides Research in Motion, Radio Shack, Hewlett-Packard, and J.C.Penney have each had major layoffs here in North Texas.

Professor Davis says the companies are struggling because retail is changing. "Radio Shack used to be a pretty good little company, big company, and J.C. Penney's a giant in retailing, and now they're having trouble, but we've got Amazon opening up warehouses and logistics facilities around here because the retail model is changing."

As for Research in Motion, app-maker Jim Bricker says when the company releases its new Blackberry 10 platform early next year, it must be more than just new hardware.

Bricker says, "Now what's important is the software. So the operating system, how easy it is to use, what kind of apps in the app store."

Research In Motion says its new Blackberry 10 will include a much- improved camera, a modern web browser, and social networking integration.

The company says some of its new phones will have touchscreens, and others will have physical keyboards.

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