RIM loses 21 percent – a cautionary tale
BlackBerry maker Research In Motion is drastically lowering its financial outlook and handing out pink slips.
Very disappointing sales of BlackBerry smartphones and tablets during the last quarter led RIM to cut its full-year profit expectations by 30% Thursday.
The Waterloo, Ontario-based company also announced that it will begin a program to “streamline operations,” which will include layoffs.
Shares of RIM (RIMM) fell 21% Friday.
RIM said its forthcoming operating system, BlackBerry OS 7, will enable a slew of sexy, high-end product launches across the globe that will get the company out of its current funk. But the release of BB7 has been delayed until late August at the earliest. That means the majority of the company’s sales in the meantime have been — and will be for the near term — made up of cheaper, lower-end devices.
Scrutinized by analysts on a conference call Thursday afternoon, the company’s defensive co-CEOs said the delays are due to RIM’s carefully planned transition strategy.
My take – RIM are in trouble. Yes they are in the Enterprise as the corporate darling of today but their old ass user interface has gotten tired.
Consumers are bombarded with Iphones, Android Phones and yes, even Windows Phone 7. Compared to any of those three, RIM devices look like mainframes.
If they don’t find a way to reinvent their devices, they’ll wake up one day and realize that the Enterprise market is gone.
Microsoft is making a huge play with Windows 8 and Windows Phone 8.
RIM – be very afraid…