Print 40 comment(s) - last by Cheesew1z69.. on Jun 29 at 12:03 PM

  (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. (TSE:RIM) has been circling the drain for some time now, between falling market share, the BlackBerry 10 platform that's taken nearly two and a half years to bring to market, and incompetent management.  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.  He opines to AllThingsD:

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]

With 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 (KSC:005930blockbuster Galaxy S III and Apple, Inc.'s (AAPL) upcoming 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 hapless management retreats back into their Saturday morning cartoon fantasy land amid this grim dose of reality.

Source: All Things D

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I don't get it.
By Dean364 on 6/28/2012 2:45:51 PM , Rating: 5
A company has its first losing quarter and everyone starts chanting DEATH DEATH DEATH! Apple lost tons of money for years and look where they are now. I'm not saying RIM is going to pull off an Apple, but I certainly do not believe that they are 'circling' the drain.

BB10 will be out in a few months and all of the (remaining) Blackberry users will upgrade and RIM will continue to make a profit. I'm sure they'll even get some new users once it is released. Sure, they'll never have any significant market share, but they will carve out their own little niche in the smartphone market and fill a void that currently exists.

RE: I don't get it.
By Slaimus on 6/28/2012 3:49:59 PM , Rating: 2
Good point. AMD has had much worse financials for a long time, but they are still operating fine.

RE: I don't get it.
By Cheesew1z69 on 6/28/2012 4:08:10 PM , Rating: 2
And AMD has 1 real main competitor. RIM has MANY. Not even the same.

RE: I don't get it.
By Pirks on 6/28/2012 4:22:57 PM , Rating: 2
And Apple that was crumbling before had TONS of competitors. So this is THE same.

RE: I don't get it.
By retrospooty on 6/28/2012 5:56:35 PM , Rating: 3
#1... Apple would have gone under, but MS bailed them out.
#2... Apple had expensive products that people wanted
#3... Rim is at 1/16 its previous stock value and has shareholders to pay. Angry shareholders that want some money back.

Not at all the same. RIM is already agressively looking for a buyer.

RE: I don't get it.
By bety on 6/28/2012 11:39:26 PM , Rating: 2

First, you're being very optimistic. I predicted over 2 years ago (yes, tooting my own horn) that RIM was going to die, and die faster than anybody predicted, now, I'm starting to wonder if they are even trying...I think they are aware that it's over at this point, and are trying too spin things as well as possible for suitors.

In any case, even if you're correct, it's very difficult to stay in the market, even in your own niche, against players like Apple and Google, if you've got a tiny market. With limited resources, you'll fall behind every month.

Moreover, if you don't think going from the Blackberry empire to no "significant market share" IS death, then you're operating with different definitions than most people.

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