BlackBerry maker CEOs step down as pressure mounts

[The Green Barbarian]

All I have got to say is RIM is ridiculously cheap. I'll check back in 6 months. Ciao.

just had lunch with two guys who both are ditching their BB's and going with Samsung Android phones. The reason? Their contracts are up and RIM doesn't have a phone on the market that is remotely close to Samsung or Iphone in any way. They just can't afford to continue with a smartphone that is so far behind the curve that it can't run most of the apps out there today. And they are sick of the buggy RIM phones that require them to do battery pulls constantly to get them to work. I am assuming this switch over is going on everywhere in the world right now - people's contracts are up and they can't justify staying with old buggy technology any more.

[Homeownertoo]

That and Rim's repeated delays to update their technology are what is sinking the company. Sure, that's not an issue in poor countries where rims obsolete phones continue to sell. That will end as the better phones are coming down in Price.

[The Green Barbarian]

That and Rim's repeated delays to update their technology are what is sinking the company. Sure, that's not an issue in poor countries where rims obsolete phones continue to sell. That will end as the better phones are coming down in Price.

Yeah apparently RIM really owns the Indonesian smart phone market. At least until next year anyway.

[econovan64]

Rim, Nortel, is there a pattern here?

[LANDM]

Rim, Nortel, is there a pattern here?

It is the same pattern as Static noticing a pattern in RIM and Apple behavior.

[The Green Barbarian]

RIM on the rim of disaster
by The Canadian Press - Story: 78664
Aug 1, 2012 / 9:52 pm

Research In Motion is making further reductions across its operations as a source confirmed Wednesday that it will shutter its North American retail stores, while a separate report suggests the BlackBerry-maker is about to cut another 3,000 jobs.

The Waterloo, Ont.-based company declined to confirm a report from online magazine Cantech Letter which says further workforce reductions will be revealed on Aug. 13. According to the report, the cuts would be in addition to the 5,000 layoffs the company announced earlier this year.

RIM has been making drastic reductions across its operations to help counter faltering sales of its smartphones, particularly in North America.

A source familiar with RIM's retail presence said that its last-existing storefront in Michigan will soon shut down, as well as nine airport locations.

RIM would only confirm that recently its Boston retail store closed.

"We're constantly studying the consumer market and how customers make purchases," said an emailed statement from RIM representative Nick Manning.

"Consumers still have many options to buy BlackBerry products from over 20,000 retail locations in the U.S. and online."

RIM has been working to turn around its operations after watching its market share erode as consumers switched to Apple's iPhone and other smartphones running Google's Android operating system.

The company's future success rides on the unveiling of its BlackBerry 10 operating system, which has suffered two major delays that have pushed its debut into early 2013.

In the meantime, it has pledged to investors that it will find savings wherever it can over the next several quarters, which it expects will continue to be very challenging for its business. The company has said that costs — particularly jobs — directly linked to the development of its BlackBerry 10 operating system would not be affected.

"These difficult changes are necessary as we drive a program to reduce our operating expenditure by over $1 billion," the company said.

In the quarter ended June 2, RIM saw revenue drop 33 per cent to $2.8 billion, down from $4.2 billion in the prior quarter.

Over the past few months, several notable executives have left the company, including co-CEO Jim Balsillie and others who were in sales and operations roles.

This week, Hampus Jakobsson, director of strategic alliances, became the latest to exit after he announced plans to take a job at a new startup company.

RIM has replaced some of the vacant positions and shifted other roles to current executives.

In separate developments late Wednesday, RIM countered reports that said the company had agreed to hand over encryption keys to the government in India that would allow access to secure emails and its BlackBerry messenger services.

"RIM is providing an appropriate lawful access solution that enables India's telecom operators to be legally compliant (with BlackBerrys) to the same degree as other smartphone providers in India," the company said in an emailed statement.

RIM said the access agreement does not extend to its enterprise communications, or business customers.

[Homeownertoo]

Further to that, Rim is now looking to license BB10 to someone that has the capacity to deliver it:

"We don't have the economy of scale to compete against the guys who crank out 60 handsets a year. We have to differentiate and have a focused platform. To deliver BB10 we may need to look at licensing it to someone who can do this at a way better cost proposition than I can do it. There's different options we could do that we're currently investigating." -- Thoresten Heins

Certainly sounds like a company that is about to take the world by storm and crush its competitors. Better snap up some stock at its bargain price. It's headed for a hundred! Guaranteed!!!

[twobits]

Further to that, Rim is now looking to license BB10 to someone that has the capacity to deliver it:

"We don't have the economy of scale to compete against the guys who crank out 60 handsets a year. We have to differentiate and have a focused platform. To deliver BB10 we may need to look at licensing it to someone who can do this at a way better cost proposition than I can do it. There's different options we could do that we're currently investigating." -- Thoresten Heins

Certainly sounds like a company that is about to take the world by storm and crush its competitors. Better snap up some stock at its bargain price. It's headed for a hundred! Guaranteed!!!

Translation: We would quickly blow thru our 2 billion in cash trying to launch BB10 and compete with the big boys and then we would have nothing.
Question: Why would anyone be enthusiastic about liscencing BB10, a new unproven platform, when RIM's global market share of smart phones has now dropped to below 5%?

[Static]

The 3000 is part of the 5000. Not an additional 3000. It will comprise of HR, customer service etc. all the departments that can be farmed out for cheaper. That is good news.

[zyzzx]

Sitting at $6.94... What's the short at now? LOL...

http://www.guardian.co.uk/technology/20 ... rice-apple

http://www.eweek.com/c/a/Mobile-and-Wir ... hy-167457/

[Captain Awesome]

Well, to be fair they did offered a sneak peak at new devices with BBX to major cell companies and the feedback was quite favorable.

[Static]

All you naysayers will look like fools for not buying. And I will

[zyzzx]

All you naysayers will look like fools for not buying. And I will

Buy?!

I sold over a year ago when it plunged to 20. I guess I could take 5-10% of that profit and buy a couple thousand shares, but really I would be better off investing in another revenue generating property. At least there is a long term gain there.

Your newsletter still isn't explaining why your fund is bleeding.. I thought you would at least give what investors you have left a clue what you are bungling.

[Homeownertoo]

The fact is that, regardless where Rim stock goes in the future, it is a purely speculative play today. As such, it is of no interest to investors, only speculators. To label anyone a fool for overlooking a highly speculative play is itself the height of foolishness, regardless of how it performs later. Anyone who thinks otherwise is a fool if he think himself an investor when he sinks more money into Rim. This is not about predicting the future, it is about making rational decisions with one's momey. I think most people here understand that. Just not everyone.

[Static]

My decision to buy RIM is very rational. There is speculation when one invests into any company.
Furthermore, please explain why it is a very speculative play at the moment. Homeowner, what companies would you recommend today?
Xxyz, what is my newsletter? I do not have a fund, they are a waste of investors money. I manage individual portfolios. Anyways, go and try to buy a revenue positive property that will outperform shares in RIM. Wait, you won't be able to.