More bad news for RIM

Published: September 15th, 2011
Waterloo, Ont.-based Research in Motion just can't catch a break.
Earlier this morning, Brand Finance Ltd. pegged The company's brand value at $3.3 billion, down 24 per cent from January's $4.36 billion. (Brand Finance is a London-based worldwide firm that specializes in the evaluation of intangible assets.)
That news comes on a day that RIM is expected to report “disappointing” second-quarter results, according to the Globe and Mail.
And report the company did. The CBC reports that profits are slashed in half over last year's Q2, at $329 million (US). Revenues, at $4.17 billion, are substantially of the analysts consensus of $4.5 billion.
Shares are falling sharply. And, despite the fact that I've always believed the dysfunction at RIM is overblown, now is the time for a decisive move in the C-suite. Regardless of whether the problem is more the perception than the technology, co-CEOs Mike Laziridis and Jim Balsillie haven't been able to change that perception. Shareholders aren't going to tolerate it much longer, and will vote with their feet.
The new, QNX-based operating system has to come soon, and RIM can't afford it not to be a compellingly different user experience. The new BlackBerrys have to be revolutionary, like the earliest RIM products that changed the face of the mobile enterprise (hell, it practically *created* the mobile enterprise). RIM has to woo developers from iOS and Android, a tall order.
The company's share value makes it queasily close to an easy takeover target, and it would a shame to see a young, iconic brand like RIM's relegated to a second thought in some international tech giant's portfolio.

Would you recommend this article?

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication. Click this link to send me a note →

Jim Love, Chief Content Officer, IT World Canada

Related Download
Moving to the Cloud: Beyond the Myths Sponsor: Carbon60
Moving to the Cloud: Beyond the Myths
Get on the road to cloud success by moving past the myths around it.
Register Now