RIM freezes stock trading, expects another big loss
To stave off a sell-off of their stock, RIM froze trading after hours, to allow time for investors to contemplate the news; while a further devaluation of RIM stock is likely tomorrow when trading resumes, the move may at least prevent the bottom from falling out of RIM’s market capitalization. Heins’ press release characterized this as a major transition period as the move from last year’s BB7 devices to their next-gen BB10 device(s) later this year.
In addition to the lack of a current product portfolio in advance of BB10, RIM has also been dealing with layoffs, executive flight, and the continuing hemorrhaging of market share. In the press release, Heins reiterated what has been reported before, that the company is examining ” the relative merits and feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives.
There’s no point in beating a dead horse here, as things are actually very simple for RIM: current BlackBerry handsets have lost consumer interest and there’s probably nothing that can be done to change that. So either both the upcoming BB10 operating system and handsets will be executed well enough that consumers flock back to the brand, or else RIM’s days as a consumer devices company are over.
Whether the result of such a failure would mean being reborn as an enterprise services company, or result in RIM being acquired by another company for IP remains to be seen (and with any luck we won’t have to see it). But in the next 6 months or so we should have a pretty good idea of how it will play out.
source: Market Watch via The Verge
2. Berzerk000 posted on 29 May 2012, 17:19 2
Come on RIM, release BB10 early, it's your only hope.
3. kindlefireowner posted on 29 May 2012, 18:13 0
Hi. My name is Mark. Welcome to our facebook family.
5. lsutigers posted on 29 May 2012, 22:05 0
How long is it going to take RIM to release BB10 phones? It seems like they have been talking about it forever, its coming, its coming...just hang in there...
They have failed to change with the times in a fast paced industry, as a result they have lost the significant market share they once had. They need to accelerate the release of BB10 AND at the same time ensure the execution is as close to flawless as possible. I know, easier said than done but they dont have a choice.
8. Droid_X_Doug posted on 29 May 2012, 22:50 0
It could be over with by the time BB10 handsets are released. What makes you think BB10 handsets will magically turn around RIM's sales results. My prediction is that the BB10 handsets will under-perform and RIM will have another write-down due to having to eat the inventory of unsold BB10 handsets. Same for BB10 tablets.
6. Mr.Best posted on 29 May 2012, 22:47 0
Right now Trinidad is in a fairly large part keeping RIM alive. Practically everyone has a Blackberry here.
7. Droid_X_Doug posted on 29 May 2012, 22:47 0
Memo to RIM Board of Directors - you should have unloaded the handset business back when the co-CEOs stepped down. All of RIM's operating loss stems from hardware in the form of handsets and tablets. No one wants a handset with specs that are 18 to 24 months obsolete. The market isn't buying the optimization BS and so, RIM is posting a loss.
Get. A. Clue!