The Beginning of The End for RIM and BlackBerry?

Research In Motion Limited (RIM), which in its day was one of the leading and benchmark companies in the mobile telecommunications market, has announced via Thorsten Heins – CEO and President of the company-, which is quite likely that soon Announcing a loss of exploitation (i.e., losses from its core business: selling mobile).

The news, if we accompany it graphic showing the main image of the post, where you can see how the Canadian market share has gone from being almost 35 percent last year in the United States reaching out to barely 10%, a fall hard that has led to the announcement of the dismissal of part of their template soon (are talking about between a 12 and 38% of staff), things do not look good for the Ontario.

Since we are, it is important to remember that RIM is suffering from a couple of months ago a exodus of Directors, giving up their posts: Jim Balsillie, former co-CEO of the company; David Yach, ex-CTO of RIM; Alan Brenner, former senior Vice President; Tenille Kennedy, former Vice-President of the BBM service; or Karima Bawa, former Chief of legal services of Waterloo.

With this panorama, and to prevent a sell-off and a decline in the shares of the company in stock market, a few hours ago that has frozen the price of them, to make time for investors to read the news about the company and decide what to do having pondered the matter hours, hoping that the reaction is not impulsive. Even so, It is expected that the actions of Canadians devalue greatly tomorrow, Once re-abiertos markets and RIM back quote normally.

Thinking positive

In the press that the company made public release, its CEO gave – fortunately – a couple of good news:

  • Canadians continue to increase customer base (if it is true that in absolute numbers sold more terminals, the percentage with respect to other brands is much lower, and the percentage of use in developed countries is plummeting from a year ago – i.e., sell more because they sell more mobile than before globally-).
  • The developers received warmly and enthusiastically their new mobile OS, BlackBerry OS 10.

All or nothing

Following this last, it seems that RIM has decided to bet all its resources and efforts on a “ all or nothing ” by BB10, aside from the current operating system, its current terminals (which are no longer updated to BB10) and therefore to its customers. The fact that the output of the new mobile OS is planned for the third or fourth quarter of the year puts investors very nervous, since they expect losses similar during the next six months, until new terminals are on the market and have the opportunity to correct the course that you are taking the company.

Question of future

Likewise, according to the press release, the company is by examining several financial strategies, that would include the association with other companies for the exploitation of the BlackBerry platform, licensing the operating system so that others manufacture terminals under its operating system and strategic alternatives to the current business model.

Things are now clear to RIM, the current terminals have not awakened the interest of buyers, so the immediate future only gives two alternatives: Canadians know how to play their cards well, BB10 is a sales success, their terminals are sold like hotcakes and the company is reborn from the almost-ashes o; the alternative that we like least, things go wrong at worst, the collapse is monumental and RIM stage is finished as a manufacturer of mobile telephony.