Analysts: "RIM’s Death Spiral" Hits the "Third Inning"
June 28, 2012 1:05 PM
comment(s) - last by
(Source: Business Development)
Trainwreck is expected to continue in coming quarters until company hits a fire sale; stock is at 9 yr. low
Research in Motion, Ltd. (
) has been circling the drain for some time now, between
falling market share
BlackBerry 10 platform
that's taken nearly two and a half years to bring to market, and
. Long profitable, the company posted its
first operating loss
in many years last quarter.
Now as RIM's earnings report nears, analysts are lining up to predict a bloodbath.
Wedge analyst Brian Blair is among the majority predicting a
forced fire sale
We see a steep drop off in revenues and units near term, punctuated by a drop in subscriber adds, and an OS refresh that is largely ignored by carriers and consumers alike, driving RIM into a forced sale in 2013.
This is going to be the third inning of RIM’s death spiral.
A year ago RIM earned $1.33 USD per share on revenue of $4.9B USD. This quarter it's expected to circle down to a loss of $0.03 USD per share on revenue of $3.1B USD.
As bad as the numbers may look for June it's expected to get much worse for the second quarter, which will be reported in August. Jefferies analyst Peter Misek told
All Things Digital
, "It’s going to be terrible with a scoop of worse for August."
Analyst predict more destruction for the Rimdenburg.
[Image Source: Jason Mick/DailyTech LLC]
no real viable product
on the smartphone market, RIM is expected to plummet further as it tries to
peddle its defunct BlackBerry 7 operating system
in the face of Samsung Electronics Comp., Ltd.'s (
blockbuster Galaxy S III
and Apple, Inc.'s (
sixth generation iPhone
In other words, as bad as it is now, it's likely to get far worse for RIM soon. Don't be surprised if RIM's
retreats back into their
Saturday morning cartoon fantasy
land amid this grim dose of reality.
All Things D
This article is over a month old, voting and posting comments is disabled
6/28/2012 2:31:23 PM
They need to cut their losses and release a new Android-based OS with additions for all the blackberry services that corporations love. They get the best of both worlds, lots of apps and corporate appeal. It's even than building BB10 and it makes a whole lot more sense.
6/28/2012 4:32:05 PM
Totally agree. They could call it "Android-berry".
6/28/2012 9:19:06 PM
They'd be better off just spinning off their BBM, BES, and other BB-specific apps to iOS and Android versions, with subscriptions or corporate licensing.
Their management has called Android and the Play Store a cesspool. :P
6/29/2012 9:44:15 AM
If RIM wants to stay in the hardware biz... Android would be the only thing that CAN save them.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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