RIM Sinks Further with $125M Fiscal Q4 Loss, Key Execs Leave
March 29, 2012 9:14 PM
comment(s) - last by
RIM has a rough quarter, three execs leave the company
It seems as though RIM just can't catch a break these days. The company has been
circling the drain in the consumer space
for the past few years. RIM was slow to react to Apple's iPhone launch in mid-2007 and figured that it had a strong enough position in the marketplace to weather any attacks from the smartphone upstart.
However, once the iPhone began gaining significant traction in subsequent generations -- along with the
stampede of Google Android-based smartphones
-- RIM found itself in serious trouble.
To add insult to injury, it was recently reported that RIM
lost its position as the top smartphone vendor in Canada
to Apple's iPhone. Not even
superheroes can save RIM now
as U.S. government agencies
bail on the company
for iOS and Android smartphones.
RIM co-CEOs Jim Balsillie and Mike Lazaridis were mostly to blame for the company's laggard response to changing market conditions, and in late January,
they stepped aside to make room for Thorsten Heins as CEO
. Balsillie and Lazaridis, however, decided to stay on RIM's board of directors to keep an eye on Heins.
I. RIM Experiences Another Rough Quarter
Fiscal Q4 saw revenues slide 19% to $4.2 billion. The company reported a GAAP net loss of $125 million. In addition, RIM's shipments of smartphones plummeted 21% to 11.1 million units during the quarter. For comparison, Apple shipped 37 million iPhones in its last reported quarter.
A fire sale on PlayBook tablets resulted in a record high 500,000 units shipped for fiscal Q4
One bright side to the news is that BlackBerry PlayBook shipments were their highest point ever at 500,000 units. But even that good news has a big caveat -- RIM has been practically giving the units away, selling them for well below the original MSRP. The 16GB PlayBook was originally
launched at a price point of $499
, but most retailers
now sell the tablet for $199
or even lower. In fact, some retailers even sold the 64GB PlayBook for $199 for a short period of time (this model retailed for $699 at launch).
II. Top Execs Leave RIM, CEO Thorsten Heins Hopes to Turn the Company Around
With so much uncertainty now swirling around at RIM, Jim Balsillie announced that he is now leaving RIM's board of directors. "As I complete my retirement from RIM, I'm grateful for this remarkable experience and for the opportunity to have worked with outstanding professionals who helped turn a Canadian idea into a global success," said Balsillie.
Jim Balsillie retires from RIM
In addition, David Yach (CTO of Software) and Jim Rowan (COO of Global Operations) are also leaving the company. "RIM would like to thank David Yach and Jim Rowan for their years of service and many contributions to RIM," said CEO Thorsten Heins. "We wish them well in their future pursuits."
For his part, Heins feels that there is still a lot of life left in RIM. "I have assessed many aspects of RIM's business during my first 10 weeks as CEO," said Heins. "I have confirmed that the Company has substantial strengths that can be further leveraged to improve our financial performance, including RIM's global network infrastructure, a strong enterprise offering and a large and growing base of more than 77 million subscribers."
Current RIM CEO Thorsten Heins
Heins goes on to once again tout the
upcoming BlackBerry 10 platform
and confirms that it will launch in the second half of 2012. However, Heins also acknowledges that RIM still has a lot of work to do.
"In addition to delivering the BlackBerry 10 platform and refocusing resources on RIM's key opportunities, such as BlackBerry Mobile Fusion and new integrated service offerings, we will also drive greater operational performance through a variety of initiatives including increased management accountability and process discipline," Heins continued.
RIM is also turning its attention away from the consumer space and is hoping to refocus its efforts on its enterprise business, joint ventures, and licensing the BlackBerry 10 operating system.
"We believe that BlackBerry cannot succeed if we tried to be everybody's darling and all things to all people," said Heins. "Therefore, we plan to build on our strength."
This article is over a month old, voting and posting comments is disabled
RE: Gotta start somewhere....
3/30/2012 2:30:43 PM
I agree. RIM is likely toast.
Its not that BB10, or QNX isnt good. It's that people wont care. When it comes out, we will be looking at the iPhone 5 with probably IOS6, and many new Android 5 devices.
RIM's corporate business would be at least lucrative enough to sustain a smaller company than RIM is, and they
survive with some layoffs. They would be fine if they werent currently as big as they are. A company of that size that had that much market power cant just "shrink" to a much smaller company. They have shareholders to take care of, the shareholders are going to want some amount of their money out of the company. Before it gets to small, they will become too loud to ignore and RIM will be forced to sell off to satisfy the shareholders.
In other words if RIM were always a medium size company, they could probably sustain it , but they are large and cannot shrink to medium and sustain, because the shareholders arent investing in order to lose their shirts, they will want some portion of their shirts back.
"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il
RIM Loses No. 1 Canadian Smartphone Shipments Spot to Apple for 2011
March 23, 2012, 12:43 PM
Report: RIM to Slash BlackBerry Service Fees After Second Gov. Agency Leaves
March 6, 2012, 11:17 AM
RIM Escapes to Fantasy World, Imagines Superheroes Will Save It... Literally
January 31, 2012, 11:17 AM
RIM's New CEO Says All Android Phones are the Same
January 27, 2012, 8:49 AM
Co-CEOs Balsillie and Lazaridis Kicked Off Sinking RIM Ship, COO to Step In
January 22, 2012, 9:40 PM
Archos Offers $99 WinPhone, $150 x86 Win8.1 Tablet, Android Trio
August 27, 2014, 7:07 PM
HTC Desire 510 Officially Announced, May be First 64-Bit Android Smartphone
August 27, 2014, 3:50 PM
Report: Apple to Unveil "iWatch" at iPhone 6 Event on September 9
August 27, 2014, 2:00 PM
Reports: Snapchat is Now Worth $10B, Cofounders are Billionaires to Be
August 27, 2014, 9:30 AM
Tim Cook Says iPad Sales Have Merely Hit a Temporary “Speed Bump”
August 27, 2014, 9:16 AM
ZOTAC Announces Diminutive ZBOX PI320 pico
August 27, 2014, 9:00 AM
Most Popular Articles
Microsoft's Surface 2 Tablet Family Gets a $100 Price Cut
August 25, 2014, 1:16 AM
Report: Microsoft to Announce Windows 9 on September 30
August 21, 2014, 11:20 AM
From HULC to FORTIS: the Evolution of Lockheed Martin's Incredible Exosuit
August 22, 2014, 12:45 PM
SpaceX Falcon 9-R Rocket Suffers Malfunction, Self-Destructs During Test Flight
August 23, 2014, 9:36 AM
Owner of "Decepticon" Maserati Ordered to Appear in Court This Thursday
August 25, 2014, 7:55 AM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information