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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 6:06:44 PM , Rating: -1
They have more $$$ than enough to survive until the BB10 arrives. You can post whatever you want to retro, it won't change anything
quote:
I have been telling you RIM is headed for a major tailspin and you say its not
You were telling me RIM is to be sold, and it's not.


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.


"And boy have we patented it!" -- Steve Jobs, Macworld 2007














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