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RIM rollercoaster continues to unravel as it plummets downhill

Waterloo, Ontario-based smartphone maker Research in Motion, Ltd. (TSE:RIM) is facing a potential end-of-life scenario as it scrambles to deploy its next generation BlackBerry 10 (BB10) operating system to market.  BB10 was supposed to arrive early this year, but instead was pushed back to a late 2012 launch.  Customers were left waiting... and waiting.  

Except most didn't wait.  Most moved on to other platforms like Google Inc.'s (GOOG) Android or Apple, Inc.'s (AAPL) iPhone.  RIM has seen market share of its defunct BlackBerry 7 operating system plunge into free fall.

The latest sign of the company's sales woes comes as Canadian manufacturing partner Celestica Inc. (TSE:CLS) announced it would "wind down" production of BlackBerries and commit to "restructuring" to produce more popular devices -- like Android smartphones.

RIM is accumulating a soaring inventory of unsold handsets and its CEO Thorsten Heins talked about "streamlining" his company's workforce and supply chain.  Apparently part of that process is to bid farewell to one of the company's longest term domestic manufacturing partners.

It's no big loss to Celestica, though.  Celestica expects revenue of between $1.65B and $1.75B USD -- and it only expects a $35M USD hit from the RIM phaseout.

The exodus from RIM is not limited to customers and suppliers.  RIM has also seen many of its most promising executive talents jump ship to more successful firms, as it's been left to make due to with castoffs from other bankrupt or struggling firms.

It seems that RIM will likely survive long enough to deliver BB10 out of sheer stubborn will, if nothing else.  But amid mounting financial losses and a complete dissolution of the company's assets from head to tail, the question will be what will be left of it when it gets there.

Source: Celestica



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RE: Android phone?
By Pirks on 6/18/2012 5:43:42 PM , Rating: -1
quote:
http://beta.fool.com/bobbyfisher/2012/06/18/recent...
"If you look at the financials dispassionately, they are not so bad and it is the pessimism about the future that is actually weighing down the stock. The company has been consistently profitable and for the last fiscal ended March 3, it shows an EPS of $2.22 per share. Though this is a major slide from the $6.34 per share in the fiscal ending 2011, it is nevertheless a solid operating profit. RIM has over $2 billion in cash & investments on the balance sheet and was even the first quarter of fiscal 2013"

Hey thanks for showing me the link to good financial news about your company Thorsten. Always appreciated.


RE: Android phone?
By retrospooty on 6/18/2012 5:49:57 PM , Rating: 2
Yes, they do have some $$$. More than enough to survive until the sale. As soon as tehy find abuyer and agree on a price its done. You can post whatever you want to Pirks, it wont change anything.

Over the past year, I have been telling you RIM is headed for a major tailspin and you say its not. I even wanted to bet you , but you wouldn't take it. I admit though, I was wrong about one thing... I said by October 2012, all metrics would be down and there would be no way to fudge the #'s anymore. I was incorrect, because it happened much faster than I thought. Yet, still here you are, steeped in deep denial. Good luck with that.

Good luck to you too RIM, you need it. You really need it to try and get a buyer willing to pay tp dollar, becasue your company is worth less and less every day.


RE: Android phone?
By Pirks on 6/18/12, Rating: -1
RE: Android phone?
By retrospooty on 6/18/2012 6:21:01 PM , Rating: 2
Whatever man... The world marches on, regardless. When RIM's selloff is announced, I will say I told you so and you will say "no you didnt" and regaldless - life goes on. Enjoy your cloud.


RE: Android phone?
By Reclaimer77 on 6/18/2012 9:00:01 PM , Rating: 3
And when BB10 arrives, then what? LOL you really see that as their savior or something?


RE: Android phone?
By Focher on 6/19/2012 9:01:45 AM , Rating: 2
You are aware that Heinz said he's open to a sale, right?

"Chief Executive Officer Thorsten Heins said yesterday the BlackBerry maker will concentrate on the market it once dominated following a fifth straight quarterly sales shortfall. He also said he would consider a sale of the company, though that is not the “main direction” at the moment." - http://www.bloomberg.com/news/2012-03-30/rim-ceo-c...

The reason that's not their primary strategy is because no one actually wants them.


"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer














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