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Are RIM's best years behind it?

Research In Motion unveils new operating system called BBX for BlackBerry devices A customer looks at the Blackberry Playbook at a Best Buy store as the tablet went on sale in Canada Tuesday, April 19, 2011 in Montreal. (Ryan Remiorz / THE CANADIAN PRESS) Research in Motion offices are seen in Waterloo, Ont. on Wednesday, Oct. 12, 2011. Research in Motion offices are seen in Waterloo, Ont. on Wednesday, Oct. 12, 2011.
Research In Motion unveils new operating system called BBX for BlackBerry devices

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I still prefer a Blackberry to the iPhone and Androids. I have used all 3 and keep going back to RIM. So much more user friendly, and in my experiences a lot fewer bugs. I had issues with Apple as well as Android phones and not with my trusty Blackberry

Rachel

Are RIM's best years behind it?

talking about
Are RIM's best years behind it?

Date: Thursday Dec. 22, 2011 7:37 AM ET

Takeover rumours, more delays for its new smartphone and stiff competition from other manufacturers have many wondering if Research in Motion's best years are behind it.

The Waterloo, Ont.-based company, which used to be the darling of the Canadian technology sector, took a drubbing in 2011 as its share price dropped along with its market share when a series of blunders forced many to ponder if it has lost its swagger in an industry that requires constant innovation.

And it disappointed investors even further recently when it announced that its next generation of smartphones -- the QNX-based BlackBerry 10 -- would not be on the shelves until late next year.

"We ask for your patience and confidence," co-chief executive and co-chairman Mike Lazaridis said during a conference call to analysts on Dec. 15. "We wanted to make sure the product we launch in the U.S. has the performance and battery life expectations that consumers are going to be expecting."

The company said the delay in launching the new device was caused by slow production of the chipset intended to be installed in BlackBerry 10-powered handsets, which will not be available until at least mid-2012.

This aggressive timetable leaves analysts skeptical.

"Even though they are saying late 2012, we think we should be braced for another possible delay because things can happen that nobody necessarily expects when you are trying to do an integration," said Troy Crandall, a technology analyst at MacDougall, MacDougall and MacTier in Montreal.

"It would require a certain amount of luck to get it out on time with such a rushed schedule."

RIM had been depending on the new QNX operating system to help it catch up to devices such as Apple Inc.'s iPhone as well as Google's Android-powered handsets.

The new RIM phones are expected to offer features users are clamouring for, including streaming video.

"RIM confirmed the BlackBerry 10 smartphones will be delayed until the latter part of calendar 2012. This could be game over for the BlackBerry franchise," National Bank Financial analyst Kris Thompson wrote in a note to clients.

Competitors edge ahead

The growing fear among analysts is that any delay in the handheld devices pushes the already troubled company further behind the pack in the smartphone race.

They contend that as the tech giant stumbles to perfect the much-delayed BB10, the other players have already advanced their products, leaving the new RIM product already outdated.

"The concern is that RIM will be playing continual catch-up and even when they do come out with a new device it will still be behind the times and seen as a dinosaur essentially in the technology world," Crandall said.

"A year in technology is like two or three in other industries, when they finally get this new device out next year the problem becomes that although the device now might be competitive with what's on the market, will it be competitive with what is on the market a year from now?"

In the meantime, analysts said RIM must depend on sales of its current line of phones -- running BlackBerry 7 -- to help stay in the game until it can launch the handsets running new software.

Holiday hopes dashed

But the company further surprised investors during its conference call when it warned that sales of BB7 would not be up to expectations during the key holiday period.

"Customers are not taking them up on their stop-gap measure and are going to something else, something other than a Blackberry," Crandall said. "Once you lose a customer it is hard to get them back."

Kevin Restivo, a mobile phone analyst at IDC in Toronto, said RIM must do a better job at promoting the stop-gap BB7 to keep customers satisfied until the new line is available.

"If RIM is to regain share and have a better 2012 than 2011 it needs to tell its BB7 story better to the U.S. buyers," he said. "But also the BB10 phones need to be released sooner rather than later and the longer that transition period stretches on the less margin for error RIM has and potentially weaker 2012."

The well-documented setbacks of the past year have severely damaged the company's share price as investors continually hang up on the troubled company. Its shares have lost almost half their value in the last three months alone.

Although analysts are not ready to give up on the company, their patience is growing thin, and patience is the one thing that company officials are begging analysts to have for a time yet.

But this might be the last chance for the beleaguered company.

"Obviously every year in this industry is a crucial year. It is a high growth area and that means a lot of potential for change. There is no question that every year and every quarter is crucial for a smartphone maker," said Restivo.

"It is still a relative young market and there is potential for growth. But there is a question of time and the longer this transition period continues, the less margin of error it has and the more potential it has (for others) to gain market share and make it harder for RIM to recover."

Those questions make the company an unfavourable takeover target too, despite reports of offers piling up. Stocks were lifted on the latest report that U.S. retail giant Amazon.com approached RIM to discuss a takeover. That move was rebuffed, however, as have past potential offers from Microsoft and Nokia.

Comments are now closed for this story

Sher
said

Windows Phone?


Bob
said

A: Yes.


Reg
said

For all the Canadian 'other' smartphone users praying for the demise of RIM...You had better hope they make an app that raises your house prices back up, creates countless jobs, and adds to the Canadian and local economy like RIM does. We'll need it. It's not about a bigger app catalog people. Wake up and be careful what you wish for...


CdnPat
said

I have a BlackBerry Bold and think it is great - it does all the important stuff that I need and more. BBM is a great means for keeping in touch. I also bought a PlayBook and am totally satisfied with it. My spouse just purchased the new BB Torch and is completely satisfied. I purchased a PlayBook for my daughter in AB so we can be more closely connected and she loves it. However I don't do FaceBook, Twit (as I call it), download music, play games, etc.I think we need to quit advising to stay away from RIM (as my Apple-bigot salesman did) because the stock price is down. Investors shouldn't be driving the marketplace, consumers should. And I also think we need to be supporting great Canadian technologies rather than badmouthing them


Montreal Man
said

Man, I am Canadian and I am really sorry for BB.. They did not get it yet!!! all Canadians want to support them, look at all the BB Torch that ppl buy instead of the supirior Iphone 4!! What they need is to scrap the old mentality, work in a great inovative hardware with a good price, and surprise all the BB lovers !I do not know.. Did they think that Playbook will be a compatitor for Ipad ? even a compatitor to Galaxy tab ? All what I see now is PlayBook is a compatitor for Candle or a chinese andriod tablet!. not to a 10 inch, 10 hours battary, WIFI, GSM, GPS, powerful tablet !


Will
said

While I prefer the iPhone for my own use, the BB is an excellent product as well. If RIM was to have a product that matches the iPhone, I would happily switch.


Listen up JB
said

Mitel, Corel, Newbridge, is RIM next? JB needs to stop sitting on his laurels counting his money and stop wasting shareholders investment and start to do something smart with a new product like the ASUS transformer Prime an innovative hybrid notebook/tablet which has already pre-sold 700% of its objectives for their amazing new and very impressive 'iPad killer' tablet and its not even hit the retail shelves yet ! RIM has to have vision and exceed market expectations for their products. RIM needs to add style to their products and include the much wanted Android o/s and forget about tryimng to chase Apple they are for noob's who don't understand what a "smart" product really is.


Blackberry all the way!!!!
said

I own a Blackberry Curve and love it!!! I will not be going to Iphone or anything else, I am proud to be Canadian and try to support Canadian business as much as possible.

Things will change and will get better soon enough. Do not lose hope folks!!!


Rachel
said

I still prefer a Blackberry to the iPhone and Androids. I have used all 3 and keep going back to RIM. So much more user friendly, and in my experiences a lot fewer bugs. I had issues with Apple as well as Android phones and not with my trusty Blackberry


Remarkable
said

I have a Blackberry and I love it. Apples iphone is awesome but I love my BB just as much as an iphone. It's Canadian, it's an excellent product, it is one of the best smart phones in the world. When this BB I have is done, then I'll go and get another one.


Sam
said

I've owned a number of Blackberrys in the past. I've found that for every great one (ie: world phone, Torch, Bold etc.) there were a number of duds introduced in between, and after experiencing Android and Apple OS, I've moved away from RIM products.If RIM wants to keep going, they should really stop being complacent, start to push the limits of their R & D more as well as improve quality control. They could raise the bar of smartphone standards again if they really try.


Prof. Pye Chartt
said

Not necessarily. Apple went through a period where its stock was circling the toilet bowl and people (investors) considered it a has-been that needed to be bought by some clever entity.


roc
said

My suggestion is have a BB app where the customer can choose any smart phone they want. I think this is the real issue. Teens love BBM but once they’re out of high school it off to a smart phone other than BB. Businesses likes BB but employees do not. Get the app going!


JD
said

Seriously, CTV and the rest of you media-types need to stop picking on this company. No wonder it's not doing very well. Why not encourage the company to succeed instead of jumping at every chance to slam the CANADIAN company. Smarten up! I'm a former employee of this company and I KNOW that they'll be just fine. Keep your chin up, RIM! Your loyal customers are still with you and eagerly watching your next move.


Suzie
said

I own a bb and really like it. Quite satisfied


Angry Danny
said

R.I.M.
research in motion......to bad the motion is BACKWARDS!!!!


C Zenko
said

I have 2 Blackberry's, one for work and one for personal use. The one my wfe has is on it's last legs, but it has taken alot of abuse, my kids have stepped on it and it just keeps hanging on. The other two are pretty good. There are not too many Canadian companies that the world recognizes, as a Canadian i am proud to support a company that is Canadian. If you all write them off, Canada loses. If you feel they can do better at something write them a letter. As Canadians we should be trying to help our Canadian company out instead of ordering a tombstone. If my blackberry is slow at watching a you tude video, who cares, everyone has a computer to use.


sargeant
said

Don't worry folks. There are way more people out there who do not yet own a smart phone than those who do. It would be foolish to count Blackberry out this early in the game. This is still an emerging market.


Dave
said

RIM should have adopted Android instead of going with yet another proprietary OS, this time from QNX. They would have had a new, competitive handset out already, retained all their proprietary whiz bangs (BBM, security, enterprise networks, etc.) and opened themself to an enormous application developer community. This is what happens when you let techies run the company.


Case de Jong
said

Wow, is this another Avro Arrow USA Ploy to get rid of a successful Canadian Product/Company. This time under the pretext that it is the shareholders/investors that know it better!
RIM was light years ahead of anything else on the market for secure communication, just like the Avro Arrow was a better fighter plane than any from the USA.
Apple is a great innovative company but with lots of designed obsolescence built into their products.
This can not be good for business communication, upgrading yearly?



Zeke
said

80% of RIM's problem is bad PR. But what are they doing about it?


Mark in Newmarket
said

RIM had a head start on all it's competitors when it came to the product line they had, however they lacked the vision to see where this market could potentially go, apple however had a vision not to just where the market would go, but where they would take the market. RIM won't disappear anytime soon, however I do see a buyout or a merger in it's future. They will always have a niche market for their products like the Blackberry but they have taken a bath on their playbook.


IslandGuy
said

Their best times may not be behind them IF they:1. Fire their highest level of management.2. Hire some innovative leaders who have demonstrated high competencies in turning around highly troubled companies,3. Develop new vision and purpose,4. Identify what they do best,5. Identify what their customers want most from them,5. And, offer the market products that work well and fit into items 3-5. Thats a lot of "ifs".


David
said

I currently own 2 BlackBerrys and cant wait to get rid of them! Both are used daily and both currently have something wrong with them. I'm switching to iPhones.


s. troy
said

RIM is being targetted by the media. Iphones and Androids have terrible bug issues with their phones and less than half the negative media. People have a short memory,but about a decade ago Apple's stock had completely tanked and were near bankruptcy. Look at them now. In the Tech game, you can never count anyone out, till they're gone.


MJ, ON
said

My brother worked there. It is key knowing management--Mike Lazaridis does not accept failure. If this was his ship alone, I think he would turn it around. Jim Balsillie, however, should have maintained his focus on RIM instead of trying to buy a hockey team.


Norm in Ontario
said

@the magpie, soooo well said


MP23
said

I agree with Frank. For a company that was so innovative, they let it all slip away right in front of them. I use one for work but would prefer to have a smartphone for personal use. I do hope they pull through this year.On a different topic, Gary Bettman, certainly saw the writing on the wall...


eco
said

I don't see a BIG difference between BB 6.1 to BB 7.0. At the most, it can be called as BB6.2 or some version of 6. It is definitely NOT 7.0. It is these kind of games that RIM Management playing with consumers that is costing RIM fortunes a lot.


Bob Thompson
said

James T: Why would Apple do this? There are very, very few synergies there. RIM is highly business focused, and Apple emphatically cares only about the consumer market.


George V.
said

Rim can regain the status it once enjoyed only one way, just like all companies who enjoy first place this is by being pro-active with their products rather than re-active.


James T.
said

Apple should buy Rim, gut it for it's patents, and cut all the dead wood loose.


the magpie
said

RIMM....has performed 'a la' soooo Canadian!


Frank Buchan
said

If RIM's best years are behind it, it is only because RIM's executives sat on their hands while the market moved. Complacency.


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