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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RE: But...
By Pirks on 6/28/2012 4:14:39 PM , Rating: 2
I speculate retro will feel really butt hurt when RIM is successfully selling BB 10

RE: But...
By Brandon Hill on 6/28/2012 5:01:12 PM , Rating: 2
Too bad it's delayed until Q1 2013...

RE: But...
By Pirks on 6/28/2012 5:06:13 PM , Rating: 2
Too good RIM has money to survive till Q1 2013...

RE: But...
By retrospooty on 6/28/2012 5:20:00 PM , Rating: 2
Too bad they will be forced to sell it off before that happens

RE: But...
By Pirks on 6/28/2012 5:30:33 PM , Rating: 2
It's just a speculation

RE: But...
By Belard on 6/29/2012 9:39:53 AM , Rating: 4
Sorry Pirks, but its not just tech sites... Wallstreet, the carriers... are not doing RIM any favors.

The problems of RIM were mostly caused by RIM. They screwed up with QNX with delays (Remember, Palm bought out BeOS - which was quite powerful back in the 90s - it got them nowhere)

Take it from me, I'm an Amiga owner... way back with the Amiga1000 through the Amiga 3000. The hardware, the OS easily blew the doors off of PC and Mac in the 80s. Its failure is 95% the company (Commodore), not the users who sold it word-of-mouth. I know how it feels to have your platform DIE. By 1992, Amiga tech was quickly becoming out-dated. When the Amiga4000 came out, I knew it was crap technology. I went out and bought a cheap new A3000 to hold me over until some other company bought out Amiga and did something. Nope, it took almost 2 years to be sold, and then it was resold like 10 times... every company died touching it (Gateway included).

If RIM doesn't pull itself out soon, they will not live to see 2014 and their tech will be absorbed into whoever pays a few bucks for the patents. There is nothing else needed of RIM by anyone.

Now, RIM can make a customized Android (which THEY are allowed to do) along with their own patented APPS would have been the FAR cheaper and faster way to bring new phone models to market.

Its understandable to NOT be just another Android company, but what is better? a 3% market share with a dying platform which may not recover or a 10% marketshare that could grow? I actually like the design of the BB9850 which physical main buttons and its 3.7" screen. But I don't care for the BB interface as it stands.

As it is, BB10 can run Android Apps through a wrapper... so WHY not simply go Android and save their skins? Just make their own in-house APPS that is specific to their biz/market and only sold with BB branded phones? The END-USER wouldn't know BB10 from android anyway with a proper skin job. Last time I was in an at&t shop, I showed them Launcher7 on my Android phone and they thought it was really a Windows7 phone (at first).

If they can get over themselves (EGO) and go Android - they can turn it around in 3~6 months. They would have the Android APP store, people would NOT be afraid to buy a BB Android phone.

Hey, remember my post in the other article? Seriously, I would buy a BB9850-type device with Android OS over a Samsung-anything or Nokia 900 without blinking.

I doubt they can do entertain the idea of doing this... they are not flexible. That would require more forward thinking and not lying to themselves.

BB10 is not Android, they don't have the developer support... Older BB devices won't run BB10. The mindset of people will not change... I don't see it changing. RIM has had 3 years to do something, anything.

"I f***ing cannot play Halo 2 multiplayer. I cannot do it." -- Bungie Technical Lead Chris Butcher

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