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
RE: I don't get it.
6/28/2012 4:22:57 PM
And Apple that was crumbling before had TONS of competitors. So this is THE same.
RE: I don't get it.
6/28/2012 5:56:35 PM
#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.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
Unsold BlackBerries Pile Up, Layoffs Near, But RIM CEO Claims All is Well
May 30, 2012, 10:05 AM
Next Gen iPhone Screen Specs Leak, Apple to Reportedly Deliver Mini Tablet
May 22, 2012, 6:33 PM
RIM Puts LightSquared Castoff in Charge of Marketing; Airs Vague Ad Pitch
May 8, 2012, 4:10 PM
Samsung's Galaxy S III Brings 4.8" HD Super AMOLED Display, Quad-Core Exynos
May 3, 2012, 2:55 PM
IDC: Apple and Samsung Steadily Climb as Nokia, HTC, and RIM Plummet
May 1, 2012, 2:53 PM
Quick Note: Toshiba to Restructure PC Business, Cut 900 Jobs Worldwide
September 18, 2014, 1:40 PM
Samsung Galaxy Note 4 U.S. Pre-orders Start Sept 19, Launches Oct 14
September 18, 2014, 10:15 AM
Amazon Releases New and Refreshed Kindle Fire Tablets, Announces Fire OS 4
September 17, 2014, 10:23 PM
Apple Launches iOS 8 for iPads, iPhones
September 17, 2014, 1:54 PM
Apple Cripples NFC in iPhone 6, 6+ With Developer Ban
September 17, 2014, 1:00 PM
5.7" ZTE ZMAX "Phablet" Coming to T-Mobile Sept 24 for $252
September 17, 2014, 11:50 AM
Most Popular Articles
Quick Note: Buy an Xbox One Sept 7-13, Get a Free Game
September 4, 2014, 10:42 AM
Apple Announces Its Smartwatch: The $349 Apple Watch
September 9, 2014, 2:09 PM
Dell Announces "World's Thinnest" Tablet: The Venue 8 7000 Series
September 11, 2014, 8:51 AM
Windows 9's Latest Metro Start Menu Leaks, German Site Accidentally Outs Leaker
September 11, 2014, 8:36 PM
T-Mobile Launches Un-carrier 7.0, Beefs Up Wi-Fi Calling
September 11, 2014, 2:56 PM
Latest Blog Posts
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information