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
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Remember the Amiga!
6/29/2012 9:57:50 AM
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!
6/29/2012 12:03:31 PM
The value of RIM will be almost nothing by 2014.
It won't be around by 2014, so of course it will be nothing.
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
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