Enterprise IT Watch Blog

Apr 26 2012   7:38AM GMT

Could this be the end for RIM?

Michael Tidmarsh Michael Tidmarsh Profile: Michael Tidmarsh

Over the past few weeks, rumors surrounding RIM’s declining financials continue to be a huge topic in the mobile device industry.

According to DailyFinance, RIM recorded a net loss of $125 million last quarter and revenue declined by 25 percent. Reports are surfacing that RIM has hired a law firm to work out a restructuring plan for the company.

Where did RIM go wrong? I remember just a few years back, everyone had a BlackBerry. You weren’t a part of the “cool crowd” if you didn’t have one.

Now, where has it gone? All you see is iPhones and Androids. Recently, a friend of mine got rid of his BlackBerry and bought an iPhone. Why?

“Because it’s better,” he said.

That’s the problem for RIM. As Apple and other smartphone companies were coming out with new phones or upgraded features, RIM hit a standstill.

In December 2011, RIM needed to postpone the BlackBerry 10 because their operating system was a complete mess.

“RIM is simply pushing this out as long as they can for one reason, they don’t have a working product yet,” a high-level RIM employee told Boy Genius Report.

RIM released a statement to All Things D regarding the BlackBerry 10:

RIM made a strategic decision to launch BlackBerry 10 devices with a new, LTE-based dual core chip set architecture. As explained on our earnings call, the broad engineering impact of this decision and certain other factors significantly influenced the anticipated timing for the BlackBerry 10 devices. The anonymous claim suggesting otherwise is inaccurate and uninformed. As RIM has previously explained, and as Mike Lazaridis reiterated on the earnings call, we will not launch BlackBerry 10 devices until we know they are ready and we believe this new chip set architecture is required to deliver the world class user experience that our customers will expect. Any suggestion to the contrary is simply false.

Even with RIM’s explanation, users can assume the BlackBerry 10 won’t be coming out for months.

So this is what were left with: a once promising mobile company being eroded by its competitors and themselves.

Could there be a comeback for RIM?

Well, I would put its chances at slim but not none. RIM CEO Thorsten Heins is very innovative but also is inclined to make mistakes and says what’s on his mind.

It could very well come down to the BlackBerry 10. If it succeeds with users, then it might be back in business. But, for now, RIM is in jeopardy.

Michael Tidmarsh is the Assistant Community Editor for ITKnowledgeExchange.com. He can be reached at Mtidmarsh@techtarget.com.


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