RIM announce their financial state, and may step back from the public market
The quarterly earning announcement from Investigation In Movement has surely brought some interesting factors to focus. The company’s CEO, Thorsten Heins, has told the traders of the organization that RIM will no longer make efforts to be “all things to all people”. Rather, the intention is to revert to a business strategy which was shelved many years ago – create devices for businesses and enterprises.
This proposed and rather severe alteration to RIM’s existing enterprise plan and advertising angle comes only weeks ahead of BlackBerry OS ten becoming released to developers. Read on for a lot more facts on RIM’s quarterly report, and what this news may indicate for Android.
In the final economic quarter (January through March), Analysis In Movement shipped only 500,000 of their PlayBook devices. Only 11.1 million Blackberry smartphones have been sold in the same time period, which is 21% lower than the quarter revenue from October-December.
Altogether, RIM’s quarterly revenue has fallen by 19% on Q4 of final year, to a modest $ four.2bn (£2.62bn). They have lost $ 25bn (£15.6bn) of revenue year on year. The Blackberry devices currently hold only 15.2% of the smartphone marketplace and that number is falling, set to pass by Windows Mobile phone seven which is slowly creeping its way up.
Former co-CEO of RIM, Jim Balsillie has now resigned from the board of directors. Nevertheless far more importantly, the company’s chief operations officer, Jim Rowan, and Chief Technologies Officer, David Yach have also announced their plans to leave the firm, probable due to its present broken state.
General RIM are in a quite desperate and hazardous place. If they do not release new innovative technological innovation which will redefine their brand, they are likely to continue down a slippery slope of unpopularity, possibly even going bust. The present buyers of RIM are leaving in droves as smartphone usage statistics present, and with crucial executives and group leaders jumping ship, how will RIM come collectively with something to sell to any individual?
Maybe it is greatest that RIM has plans to go back to the domain exactly where they initially located their success. I believe it is fairly fair to say that aside from the preliminary recognition boom in the buyer marketplace, RIM’s recognition has now dropped exponentially. I expect the CEO and investors are praying organisations will welcome their Blackberry devices back with open arms.
What does this imply for Android?
Properly it certainly signifies less competitors in the smartphone business, that’s for certain. I also anticipate that the Blackberry devices will have their charges cut dramatically to aid the sale of remaining stock. If the rates are cut, I am positive there will be a surge in popularity and purchases, the exact same way items have been for the HP Touchpad final year. Even so this news could be a disappointment to some Android developers, as RIM had been operating on emulation software package which would allow Android applications to run on Blackberry gadgets, as a result boosting an Android developer’s audience.
With RIM ‘surrendering’ as it have been, this means that Windows Cellphone will soon the location of RIM and their Blackberry OS as the 3rd most common smartphone operating system.
Overall, I suppose I really feel sorry for RIM. They have lost their dignity, brand identity, potential to impress, and to most individuals, status as a Smartphone giant. It would be a pity for the business to bust totally, and I hope that a company such as Microsoft or Nokia swoops in with a great offer you for the firms assets if items go that way.
What are your thoughts on RIM’s fiscal state and announcement? Are they smart in reverting back to designing devices solely for corporate use?