RIM ship aiming for the rocks?

Elimentals

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RIM announces Q4 2012 earnings, Jim Balsillie resigns from board, company plans to refocus on enterprise

We've already seen a bit of big news slip out ahead of RIM's earnings announcement, and the company's now dropped another bombshell itself. Former co-CEO Jim Balsillie has resigned from his position on the company's board of directors. In a statement, Balsillie said simply: "As I complete my retirement from RIM, I'm grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success." RIM also confirmed that CTO David Yach would be retiring as well, and that COO Jim Rowan has "decided to pursue other interests," but it hasn't offered any indication of a broader shakeup beyond those three departures.

As for the fourth quarter earnings, RIM is reporting revenue of $4.2 billion, down 19 percent from the third quarter, and a GAAP net loss of $125 million. Total BlackBerry shipments for the quarter dipped 21 percent to 11.1 million units, while PlayBook shipments totaled 500,000, which is actually a new high water mark for the tablet (1.3 million were shipped during the fiscal year). This is also notably the company's first quarterly earnings under the leadership of new CEO Thorsten Heins, who admits that the RIM faces some "significant" business challenges over the "next several quarters," and says that he's "taking the necessary steps to address them." That includes "increased management accountability and process discipline," as well as what he describes as a "comprehensive review of strategic opportunities including partnerships and joint ventures, licensing, and other ways to leverage RIM's assets and maximize value for our stakeholders."

On the company's earnings call, Heins further added that he intends to refocus on the company's enterprise business, and not try to be "all things to all people." He went on to offer an even more frank assessment of RIM's current state than he had earlier, stating that these are "difficult times" and that there's "no guarantee of success," while also adding that he's open to exploring "all opportunities." That includes the possibility of licensing BB10 which, incidentally, will apparently address the company's current LTE deficit "later this year." Asked on the call whether he would consider getting out of the hardware business altogether, Heins says that he prefers an "integrated" approach, but left the door open a little to that being done through partnerships instead of completely in-house -- he also repeatedly noted that he wants RIM devices to be high-end, "aspirational" products. In short: the company's focus now is on BB10 and enterprise, but it's seemingly leaving just about everything on the table.

Source Engadget

I thought MyBB would have reported about it by now, but I think it will not be long before they will go down under unless they start doing something drastic like licensing out BBM, using Windows Phone/Android or something like that.
 
RIM result highlights:

  • $2.1 billion in cash, cash equivalents, short-term and long-term investments at the end of the quarter, which increased by approximately $610 million in the quarter
  • Cash flow from operations of approximately $1.1 billion, up from approximately $900 million in Q3
  • Revenue of $4.2 billion, down 19% from the third quarter
  • GAAP net loss in Q4 of $125 million or $0.24 per share diluted; adjusted net income of $418 million or $0.80 per share diluted
  • BlackBerry smartphone shipments of 11.1 million in Q4, down 21% from Q3
  • RIM to discontinue providing specific quantitative guidance
  • RIM provides update on organizational changes

Source Moneyweb
 
BlackBerry Maker to Cede Most Consumer Markets
Struggling BlackBerry maker Research in Motion Ltd. said Thursday that it will cede most consumer markets after failing to compete with flashier touch-screen phones such as Apple’s iPhone and models that run Google’s Android software.

Instead, RIM said it will return to its roots and focus on business customers, many of whom prefer BlackBerrys for their security. RIM has had limited success trying to enter consumer markets in recent years, and RIM CEO Thorsten Heins said a turnaround required “substantial change.”

“We plan to refocus on the enterprise business and capitalize on our leading position in this segment,” Heins said. “We believe that BlackBerry cannot succeed if we tried to be everybody’s darling and all things to all people. Therefore, we plan to build on our strength.”

Wonder what that will mean in practise. Aren't they losing on the business front as well because their competitors are so popular in the consumer market?
 
It just doesn't seem like RIM have positioned themselves properly over the last 2 years. They rested on their laurels on the basis that free web access will help to maintain their dominance, yet they lacked sorely on the product development and quality of service aspects. The recent shake-up of the market to introduce flat-rated internet access to all smartphones is another nail in their coffin as it shows the network operators' outlook, which is a far narrower one in terms of RIM partnerships.

The recent introduction of free push-sms and email services means that people will be far more willing to use these alternatives to RIM's own software. They absolutely lost the opportunity to white-label their software too imo - they missed that simple boat years ago. Most people assume that companies are only out to make as much profit as humanly possible, however that is not the intentions of a good board of directors. They will attempt to position the company for future success, at an optimal rate of productivity and profitability.

RIM's situation is a perfect case-study for a business management student to use, to identify the failures of senior management, company strategy, marketing and service. They focussed on short-term profit when in fact they had the base to shape the future of the industry and guarantee future earnings. They made the conscious decision not to...
 
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I think a lot of it has to do with senior management simply not recognising the changing landscape of their industry until it was too late. An all to common problem in once dominating businesses. It takes vision, balls and determination to steer such a big ship in a different direction. They were so entrenched in their belief of Blackberry's greatness that only a continued slide in financial numbers made them eventually wisen up to the new reality.

As you say, a perfect business case-study...
 
Jobs said: "Stay hungry ..."

Thát is it. RIM's executives got themselves into a comfort zone where hunger was never a problem until it was too late.
 
I still believe RIM has much to offer to anyone willing to take them over. Other are probably waiting for RIM to reach the point where a take-over will generate least resistance from the watchdogs ... and obviously where the bid price will be lowest. In my mind MS will make the best of what RIM has to offer the corporate environment. And then there is BIS and BBM to tie in with WP. I am surprised that MS has not made a move in this regard.
 
I still believe RIM has much to offer to anyone willing to take them over. Other are probably waiting for RIM to reach the point where a take-over will generate least resistance from the watchdogs ... and obviously where the bid price will be lowest. In my mind MS will make the best of what RIM has to offer the corporate environment. And then there is BIS and BBM to tie in with WP. I am surprised that MS has not made a move in this regard.

I don't think Microsoft wants BBM, they want to aim their Lync (Android/iPhone/Windows Phone) or Skype to take its place. If they ever buy RIM they would do so to kill BBM not to use it.
 
Rim, Sony, Nokia are all dinosaurs waiting to die. Some have (sort off) accepted their faith and others have not. This is just a natural cycle all over in nature. In hindsight is easy to say this and that would have helped but eventually nature will catch up.
 
Elimentals, I'm also thinking of the patents RIM sit with that must have value to a company like MS. BBM comes with millions of subscribers that MS will want. First bring them over as is and then change the platform. And if you have the patents things so much easier.
 
Buy RIM. Get all those BBM subscribers who don't want to lose it. Tell them to get a Windows Phone in the next 24 months to continue using BBM as BBM for BlackBerry devices will be terminated in 24 months time. A large chunk of that block of users move to WP. Thát is how WP can quickly gain market share.
 
Buy RIM. Get all those BBM subscribers who don't want to lose it. Tell them to get a Windows Phone in the next 24 months to continue using BBM as BBM for BlackBerry devices will be terminated in 24 months time. A large chunk of that block of users move to WP. Thát is how WP can quickly gain market share.

That part I can see happening, I just don't know if the patents will come with it. Google Apple and friends can just call anti-trust and make the patents go the same route as the Nortel deal, whole lot of money for nothing.
 
Rim, Sony, Nokia are all dinosaurs waiting to die. Some have (sort off) accepted their faith and others have not. This is just a natural cycle all over in nature. In hindsight is easy to say this and that would have helped but eventually nature will catch up.
What do you mean Sony?
They are not only into phones, they are into all kinds of electronics. TV, playstation, cameras to name but a few.
 
The company that makes Blackberry smartphones says it will refocus on the corporate market rather than consumers.

Research In Motion has seen its sales fall behind the competition from Apple's iPhone and devices running Google's Android software.

The Canadian company made a net loss for the three months to 3 March 2012 of $125m (£78m), compared with a profit of $934m a year earlier.

Giving up...
 
What do you mean Sony?
They are not only into phones, they are into all kinds of electronics. TV, playstation, cameras to name but a few.

did you bother to Google before asking? I doubt it. Look at the performance of their tv branch :D now that you did mention it first. Same with Nokia. I believe Kodak are already gone after what - 120 years or so?
 
did you bother to Google before asking? I doubt it. Look at the performance of their tv branch :D now that you did mention it first. Same with Nokia. I believe Kodak are already gone after what - 120 years or so?

I dont think you can compare those companies to Kodak. Kodak made stuff up after stuff up until it was dead. We still have to see what kind of phones Sony bring to the market after they split from ericsson.
Besides, Nokia have new smartphones with WM7 and even if they dont to well, which I think they will, they will always rule the low end market.
 
Rim, Sony, Nokia are all dinosaurs waiting to die. Some have (sort off) accepted their faith and others have not. This is just a natural cycle all over in nature. In hindsight is easy to say this and that would have helped but eventually nature will catch up.

Wow talk about bleak outlook,I think you mean FATE,but in any event dude you gotta have FAITH.Seriously less competition is worse for consumers so I hope they all survive.

Nokia may yet rise with the advent of windows 8 to some extent and the cheapy market will keep them afloat a long while yet while they sort out their high end issues.

Rim's short term prospects may seem pretty bleak but in the long term I think with OS10 and some modern hardware they'll be back in the game.

As for Sony lol you joking right,hell the japanese government will probably bail them out rather than let them fall,some of their devisions are making losses yes but some are making profits too.

I dont think you can compare those companies to Kodak. Kodak made stuff up after stuff up until it was dead. We still have to see what kind of phones Sony bring to the market after they split from ericsson.

Exactly,they had a problem of time to market with new products when they were a joint venture because there were two bosses,no thought decisions should be pushed foward alot sooner and their products should be alot more up to date.

Take the xperia s it is currently the most powerful phone in the market and even when the quad cores are released a few months down the line non of them will be able to compete with features like the camera,so its pretty much king of the hill for a few months,and then it becomes amongst the best midrangers with an already keen price tag.With the right marketing and quicker to market product cycle sony's phone division may just make them alot of money going forward.
 
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