RIM CEO: “nothing wrong with the company as it exists right now”
CEO Thorsten Heins already spent nearly six months at the helm of the BlackBerry make, and here’s what he said for CBC’s Metro Morning radio show:
“There’s nothing wrong with the company as it exists right now… I’m not talking about the company as I, kind of, took it over six months ago. I’m talking about the company (in the) state it’s in right now,” Heins said.
“This company is not ignoring the world out there, nor is it in a death spiral… yes, it is very, very challenged at the moment — specifically in the U.S. market. The way I would describe it: we’re in the middle of a transition… All that is in the making, it’s in the works. This company is in the middle of it and I’m positive we will emerge successfully from that transition.”
1. MikeG77 (Posts: 373; Member since: 24 Nov 2008)
So lets take a look at the current situation....
1. Declining market share.
2. Declining stock price.
3. Laying off of 1/3 of your work force.
4. Stagnant product design.
5. Delayed product launches.
Now all things considered if these things with out a shadow of a doubt show that RIM is in a death spiral. I know that a lot of the current situation is not all Mr. Heins fault BUT he should have known that he needed to make drastic changes quickly instead of dragging his feet.
This CEO can't honestly think that RIM is in a good position because if he does it leads me to 2 conslusions....either Mr. Heins is high on something, severely incompetent or both.
3. Stoli89 (Posts: 333; Member since: 28 Jun 2010)
...or maybe he's simply trying to put a straight face on the situation while he is negotiating a price with another party? Clearly, it's in the CEO's interest not to shoot himself in both feet.
6. MikeG77 (Posts: 373; Member since: 24 Nov 2008)
So lets see items 1-5 are occurring and he makes statements like "There’s nothing wrong with the company as it exists right now" but he still thinks there is nothing wrong??!!
15. SuperAndroidEvo (Posts: 4342; Member since: 15 Apr 2011)
You know, this has to be the best picture ever on PhoneArena.com.
Captain Jean-Luc Picard pulled out his very last hair. lol
I guess that is what RIM is doing to a lot of people!
22. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)
Actually, if you look closer you'll see that it's Steve Ballmer; there's no mistaking the glare from that angle.
20. 14545 (Posts: 1146; Member since: 22 Nov 2011)
This is the way I see it. He's trying to put on a poker face for restructuring, buyout, or whatever other reason. Also, we don't know what they have turned around internally that he may be speaking up. He specifically said "not six months ago, but *today*". That is the key to that whole statement.
23. MikeG77 (Posts: 373; Member since: 24 Nov 2008)
Well obviously me and the shareholders see it one way and you see it the opposite.
The Playbook was a huge fail, they haven't released a compelling product in years, executives keep leaving the company and the stock has dropped from $17.57 6 months ago to a low of $7.35.
Look at the Q1 losses of $518 million, Q2 losses, BB 10 delayed till 6 months past is original launch and a 42% drop in stock. If that's what he defines as the company being in a good position then I would hate to what he defines as struggling.
Now that being said I hope they bounce back and become successful but I feel that Jim and Mike did too much damage.
25. 14545 (Posts: 1146; Member since: 22 Nov 2011)
You are not reading my comment. I never said the company was doing well. I said I "see" why he is saying what he is. It's his job to try and reassure the investors. If he got on the radio and said "nope, we don't have a plan, and it's doubtful that we can turn this around", he would be fired in less than 24 hours. That's my point.
29. MikeG77 (Posts: 373; Member since: 24 Nov 2008)
No I know what you meant by understanding his perspective but in light of all that's happened I can't believe he thinks that he can make such BS statements and not get ripped into.
30. speckledapple (Posts: 879; Member since: 29 Sep 2011)
I think he has already made some sweeping changes with the removal voluntary or otherwise of key people in positions that could fog up progress. Beyond that, with a company as intrenched as RIM, it will take more than just six simple months to turn the ship around. Which is why I am happy that Heins made the effort to deplay BB10, yes it is even later but what was produced must have been a half product, which they cannot afford to put out anymore (i.e. playbook).
2. ilia1986 (unregistered)
There is a reason there is 'black' in blackberry :P
4. cornerofthemoon (Posts: 518; Member since: 20 Apr 2010)
It's only a flesh would said the Black(berry) Knight.
5. cornerofthemoon (Posts: 518; Member since: 20 Apr 2010)
Whether or not it works at least give Nokia credit for being willing to make drastic changes, Blackberry seems to be stuck with it's thumb up its a55.
7. sonisoe (Posts: 333; Member since: 06 May 2009)
a ceo can not be too candid in public that his company is in a "death" spiral inspite of the facts, and his comment in general actually recognizes the situation... i dont think he's doing a jim & mike...
21. 14545 (Posts: 1146; Member since: 22 Nov 2011)
Exactly. He phrases it in the way that "things are looking up" but they were "bad" at one point. You can't really expect him to do anything else. It's his job to sell the investors that they are still investing in a sound company. People need to read the whole statement.
24. MikeG77 (Posts: 373; Member since: 24 Nov 2008)
14545 if you look at his history with RIM you'll see why he was a poor selection for CEO. He was in charge of marketing and handset sales....the #'s dropped in his division and he is dropping them further as CEO....
I think we all read the entire statement but everyone is suprised by the comment that nothing is wrong!
Things went from "bad" to "worse"
26. 14545 (Posts: 1146; Member since: 22 Nov 2011)
You are probably right, i'm just saying that he has to say these things. It's what he is paid to do. He can't come out and say what you did, or he would lose the job he is already barely hanging on to.
12. shamataa (Posts: 202; Member since: 07 Dec 2011)
WOW he really thinks you'll make it next year?. He must be daydreaming or ssomething b/c that is not happening.
13. cornerofthemoon (Posts: 518; Member since: 20 Apr 2010)
Thorsted Heins is just the man the government needs to hire to announce to the world about the asteroid that is heading toward planet Earth.
14. Joshing4fun (Posts: 1052; Member since: 13 Aug 2010)
Balmer looks like Abe Lincoln right now compared to this clown.
17. KingKurogiii (Posts: 5638; Member since: 23 Oct 2011)
*face palm C-C-COMBOs* -.-
just...get him out here.
18. slaggyb (Posts: 192; Member since: 19 Oct 2011)
Blackberry Is only declining here in America. The rest of the world use blackberries. I live in america and still use a blackberry and am not jumping ship to any other os...All those commenting rim won't last till 2013 you all jokers there are not going anywhere anytime soon....
19. MikeG77 (Posts: 373; Member since: 24 Nov 2008)
slaggyb im glad your loyal to your Blackberry and not going to jump ship but there are a lot us BB users who are looking at other OS's to use. You are correct a lot of people outside of the US use Blackberries but you have to admit that RIM is losing market share and not just in the US.
Wether it happens in 2013 or not doesn't really matter. RIM is not generating enough revenue and does not have enough cash on hand to cover all there operating expenses and losses.
27. pikapowerize (banned) (Posts: 1869; Member since: 03 May 2012)
i hope BB can stand up!! if this "Translation" is the reason of everything, they should make a very fast adoptation!
if RIM will sell itself, i think Amazon or Nokia is the best one out there...
amazon because it really wanted to challenge google so yeah that make sense..
nokia because of BBM... :)
28. pikapowerize (banned) (Posts: 1869; Member since: 03 May 2012)
and RIM phones are really expensive in the philippines... eveyone wants it but just ended up to an android device... so they should make cheaper smartphones!