RIM co-CEO: "our high-end products are aging”, “a whole next generation” is coming
RIM's very own Jim Balsillie, co-CEO of the Canadian phone maker, shed light on the underlying reason behind the company's lowered sales and profit forecast in a rather unexpected way: “Our higher-end products are aging … and that’s affecting … sell-through, particularly in the United States and Latin America.”
RIM cut its earnings forecast down to between $1.30 and $1.37 per share in comparison to initial projections of $1.47 to $1.55 per share, all on the background of lower estimate for total shipments which were in recalculated in the range of between 13.5 million to 14.5 million units.
To cement the point about the aged 'Berries, Balsillie added:
“As we’ve said before we feel great about the BlackBerry Platform and the PlayBook and how they’re doing. … We just need to have some newer, higher-end products in the market … This is a transition.”
We can't agree more on the last part of the statement - transition is the key word for RIM. And while the previous statement might have sound pessimistic, RIM's chief executive finished on an optimistic note promising a new generation of BlackBerries next week:
“We are straight in the middle of the whole tablet mobile computing space. And we absolutely have a whole next generation of smartphones, so strategically we feel fantastic, but operationally this stuff is pushed out so you have this transition. … We’ll have a very exciting BlackBerry World next week. You’ll see.”
We've heard whispers about the BlackBerry Dakota, Apollo and Torch 2, while just weeks ago promos for the Bold Touch 9900 (Dakota) and Touch 9860 (Monaco) leaked, so we have plenty of reasons to be excited. Check back around next week when BlackBerry World kicks off – we're sure to see more of those new 'Berries.
source: RIM via All Things D
4. deago78 (Posts: 157; Member since: 08 Oct 2009)
True story. "iPhones in the business world?...blasphemy! Wait, what? iPhones are in the business world?....ahh crap."
13. JeffdaBeat (unregistered)
I've lost all hope in RIM. I just cannot believe they let Android and Apple kick them out of the market they dominated and for no reason other than RIM didn't want to innovate what so ever. They wanted to sit back and say, "We're secure, those are just toys..." but smartphones aren't just for businesses anymore and business are even trusting Apple and Google more.
2. TDroid21 (Posts: 70; Member since: 04 Apr 2011)
Let's see what card RIM is gonna put on teh decke this time.. It better be an ace or they'll be crushed by android and ios..
3. sonisoe (Posts: 323; Member since: 06 May 2009)
dakota, apollo, torch whatever, all same looking device as current berries.. perhaps yeah of course some touchscreen on dakota, etc.... so not that exciting... they need to put qnx onto the phones like right now...
5. snowgator (Posts: 3199; Member since: 19 Jan 2011)
Would love to see RIM still relevant five years from now. But they need a sense of urgency, and a focused plan. The next two years will show if they have either.
6. PhoneLuver (Posts: 465; Member since: 05 Jul 2010)
It would be great to see them actually start selling phones instead of just dumb terminals!
It took me 2 minutes to set up my iPhone for corporate mail and 2 hours to set up the Blackberry. Additionally, my iphone updates my mailbox better than my blackberry.
I constantly have mails that I already deleted on Outlook on my BB whereas I don't have that issue with my iphone!
7. TKFox007 (Posts: 303; Member since: 02 Nov 2010)
The problem is, RIM's high-end stuff is already behind the curve when it comes out. The Bold series is proof of that, why pay more for a Bold when you can get a curve that does the same thing for cheap?
8. Jeromeo (Posts: 135; Member since: 11 Jan 2010)
Current styling housings (codename: familiartoconsumers) + current to date of announcement hardware (codename: lessthanstellar) + end of next quarter release date with extended delays (codename: nokiasales) + a pinch of same old, same old qwerty ideals = outdated, old fashioned RIMM CEO's idea of next generation
9. Droid_X_Doug (Posts: 5612; Member since: 22 Dec 2010)
If the PlayBook is RIM's idea of how to compete with Android and iOS, they are going to be ...Too Little, Too Soon.... Which is just as bad as Too Little, Too Late. At least they seem to understand the Too Little part.
11. 530gemini (Posts: 2198; Member since: 09 Sep 2010)
Ummmmm, the playbook is doing way better than the xoom :)
10. LuigiP (unregistered)
I'm an HTC Lover but I will tell ya, Blackberries are the safest phones out there for businesses. Can't trust WM/Crapple or Android for E-Mail Exchange.
Blackberries will be N1 in the business field for many years to come.
12. Goldeneye (Posts: 352; Member since: 22 Jan 2011)
Sure we all know that but RIM just can't afford to rely on "the best and safest for businesses" they need to attract consumers and get rid of the business stigma, that scare people off, and yes they need to launch their products faster, cause every time they launch a a new flagship is already behind the competition.
14. JML191 (unregistered)
You know it's weird, here in Canada I see at least 3 blackberrys for one of every other smartphone and all I hear about is declining market share. I'm waiting for the torch 2 because my entire family that sprawled all over the planet (Europe, south America, north America and Asia) has one and with my now Milestone/N8 Combo I get left out of the planning of family events.
15. ChrisA (unregistered)
RIM reminds me at PALM Inc, around 7 years ago. They were on the top and decide to not Innovate and You know the end result PALM went under ( HP took them over).