- CrackBerry Newbie
- 3 Posts
AP: BlackBerry to cede most consumer markets
@AP: BREAKING: Struggling BlackBerry maker to cede most consumer markets, focus on business customers
RIM's decision comes as it struggles to compete with the iPhone, devices running Android software: http://t.co/qiSObF48
03-29-12, 04:57 PM #6
- 58 Posts
An although 1-2 years away, we are planning to move to androids and iphones for work as well due to the ability to remote desktop in and troubleshoot instead of lugging a laptop and vpn key around.
Last edited by block911; 03-29-12 at 05:01 PM.
- CrackBerry Abuser
03-29-12, 05:16 PM #10
- 239 Posts
i wouldn't listen to the article - the author didn't get it.
They were talking about building their own music store and movie store and that. they said that that is not their strenght - might as well just have someone like amazon do it instead.
this article missed that point
- 03-29-12, 05:18 PM #12
To repeat myself (posted on the "other" thread):
I think this headline is an inaccurate, even silly, interpretation of what was said on the conference call.
The message I heard was that RIM cannot do it all, and needs strong partners for some of its market segments. Specifically, I think the video and music store intiatives will be cancelled. I wonder about the planned cloud initiative. RIM will look for partners for its phones in the consumer market rather than trying to do everything itself.
That is not "ceding" consumer markets ... in any case, in the U.S. RIM has a small consumer market to cede.
- 03-29-12, 05:20 PM #15
From what I picked up from the call, was that they're scrapping the notion of selling music/movies/media etc...
They'll still focus on making better devices, but not much (if any) effort to create a 1-Stop-Shop for all the consumers needs. Which IMHO is a good move, with the side effect of increased developer interest since there will be money to be made developing apps for BB that use other media outlets (like Google, Amazon, etc).
- CrackBerry Genius
03-29-12, 05:21 PM #16
- 3,898 Posts
Quote: "We plan to refocus on the enterprise business and capitalize on our leading position in this segment," Heins said. "We believe that BlackBerry cannot succeed if we tried to be everybody's darling and all things to all people. Therefore, we plan to build on our strength."
And i could cut and paste other quotes but that means one thing; RIM is dropping out of the race for the consumer market and refocus on business.... Um, yea, kiss developers goodbye. Kiss consumer targeted marketing goodbye.
Whats worse is Heins is wrong in his assumptions; apple and android is taking away blackberry share of the business world too. Until RIM discovers what it has done wrong over the last few years, and change that, they will continue to lose both business and consumer market share. The business world AND the consumer world is wanting more of what apple and android is offering. Many of us who are not intellectually dishonest know what that is. Why RIM chooses to ignore it I will never know.
Now sit back and whatch what happens to shares of RIMM now.
- 03-29-12, 05:22 PM #17
I would add that RIM does have strong consumer positions in some countries. RIM is certainly not "ceding" those positions. Rather, it is cutting prices and trying to cut costs so it can compete with low-cost Android phones at the "entry" smartphone level.
- 03-29-12, 05:27 PM #21
- CrackBerry Addict
03-29-12, 05:31 PM #22
- 787 Posts
- 03-29-12, 05:32 PM #23TORONTO—Research In Motion Ltd. RIMM +0.44% announced a series of high level
departures, including former chief executive Jim Balsillie's resignation from the board, as the BlackBerry maker reported a $125 million loss in the fiscal fourth quarter.
RIM said the Waterloo, Ontario, company achieved a record 77 million BlackBerry subscribers world-wide, but another quarter of falling shipments of the device underscored the challenges still ahead. In a statement accompanying results, CEO Thorsten Heins said he would take a "broad strategic review of opportunities, including partnerships and joint ventures, licensing, and other ways to leverage RIM's assets and maximize value for our stakeholders."
In the past, he has signaled he wasn't interested in selling the company. And RIM's statement mirrored previous comments about seeking out partnerships.
In a conference call after the earnings announcement, Mr. Heins acknowledged deep problems, but he also said the best way to deliver value to shareholders is to turn the company around, suggesting he still wasn't ready to entertain a sale of the company.
"It is now very clear to me that substantial change is what RIM needs," he said in the call. Still, he added later in the call, that he and his team "truly believe the best path for RIM is to manage the turnaround."
Investors immediately sold off RIM shares in after-hours trading, with the stock falling as much as 9% immediately after trading was resumed. But within an hour, the stock recouped almost much of its losses. In late New York trading, RIM was down 1.9% at $13.47.
Mr. Heins has said his turnaround plan hinges on a successful rollout this year of RIM's next-generation smartphone, the BlackBerry 10. He said Thursday that roll-out was still on track for later this year.
RIM said it would no longer provide earnings guidance "due to a desire to focus on long term value creation."
Analysts had expected another rough quarter, as RIM struggles with falling BlackBerry sales and a costly and so-far unsuccessful entry into the tablet market. But the high-level departures were a surprise.
RIM said its chief operating officer, Jim Rowan, and its chief technology officer, David Yach, would be leaving the company.
Mr. Heins said the company is looking for replacements for the two departing senior executives. He has also pledged to appoint a high-powered chief marketing officer. He said Thursday that search was "going well."
RIM's former chief executive, Jim Balsillie, resigned from the board of the BlackBerry maker.
RIM reported a net loss of $125 million, or 24 cents a share, in the quarter ended March 3. That's down from net income of $934 million, or $1.78 a share, in the year-earlier period. RIM said it would take a non-cash, goodwill charge of $355 million and a $267 million inventory impairment related to its latest line of BlackBerrys.
Revenue was $4.19 billion, down about 25% from $5.56 billion in the same period last year. Adjusted earnings per share, which excludes one-time gains or losses including the good-will impairment, was 80 cents, below a consensus forecast of 81 cents a share, compiled by Thomson Reuters.
RIM said it shipped just 11.1 million BlackBerrys in the quarter, down 21% from the previous quarter. After heavily discounting its PlayBook tablet, and taking a nearly half-billion dollar charge related to inventory build-up of the device last year, RIM said it had sold 500,000 units.
That's the best quarter for the tablet since the first three-month period immediately after its debut.
Mr. Heins took over from former chiefs Mr. Balsillie and RIM co-founder Mike Lazaridis in January after months of investor pressure for a boardroom shake-up. Analysts were expecting Thursday's earnings report, and following conference call, to provide him with his first opportunity to step out of their shadows.
RIM continues to struggle with severe smartphone market-share erosion, amid competition from Apple Inc.'s AAPL -1.26% iPhone and devices running Google Inc.'s
GOOG -1.12% Android operating system.
- CrackBerry Genius
03-29-12, 05:33 PM #24
- 4,001 Posts
I think the answer is that they will get out of the consumer services business. So no BBM Music and no iCloud competitor and all of that.
- 03-29-12, 05:34 PM #25
If BB users have to rely on Amazon, Google, etc.. for their consumer needs, then there will be developer interest to write apps to accomplish that.