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

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

Remember the Amiga!
By Belard on 6/29/2012 9:57:50 AM , Rating: 2
Simple as that...

Anyone who has lived through a dying platform KNOWS the feeling and what it looks like.

Amiga, a great platform in its hey-day. The company that owned/made it sat on their asses. they were arrogant, they were STUPID... they didn't have the STYLE of Mac or the biz savvy on how to sell their own tech.

It quickly became out-dated by 1994 and for sure once Windows95 came out (which was still a sub-standard OS). The value of Amiga tech, like any technology drops quickly... The value of RIM will be almost nothing by 2014.

RIM *MUST* do something today... HP proved that buying WebOS was a complete waste of money... yet WebOS was fine, it was elegant... worked very well (get the bugs out). But in the end, WebOS is pretty much dead. RIM's BB10 may never make it out the door.

The market can only handle 3 standards, at best. Before the days if iPhone and Android, there was only blackberry, Symbian (gag) and Windows Mobile (puke). Today, its Android, iPhone with WP7 struggling for 3rd place as a modern smart platform.

BB10 cannot compete against Microsoft... even when Windows8 fails.

If RIM wants to live through 2013, they need to decide - TODAY, to go Android. It will allow them to make their OWN launcher and install their own APPs. They can use their current hardware or whatever is in development. It would excite the market, maybe a little bit. The carriers and the user base would NOT worry about a BB-Android device becoming a dead-end platform. They could make Christmas.

I'm betting 100 to 1, RIM continues to talk about their vaporware OS into 2013, the major carriers do NOT sell any RIM devices after 2012. The market share plunges again after new-years. Maybe Samsung buys their a dozen of their patents for $500,000.

RE: Remember the Amiga!
By Cheesew1z69 on 6/29/2012 12:03:31 PM , Rating: 2
The value of RIM will be almost nothing by 2014.
It won't be around by 2014, so of course it will be nothing.

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular ArticlesSmartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
UN Meeting to Tackle Antimicrobial Resistance
September 21, 2016, 9:52 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Update: Problem-Free Galaxy Note7s CPSC Approved
September 22, 2016, 5:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki