RIM’s stock at a seven-year low

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RIM is betting its entire future on BlackBerry 10, a product many in the industry frankly aren’t that excited about. The former king of smartphones is struggling immensely of late, with over $1 billion in unsold inventory sitting in its warehouses, at least 2 more quarters of abysmal returns, and market share dipping below the 10% mark. As the punches keep coming in, investors have turned against RIM in droves, driving the company’s stock price down into the single digits. RIM’s stock was valued at $9.66 per share, the first time RIM has closed below $10 per share since late 2004.

RIM is expected to release the first BlackBerry 10 device in October of this year. RIM needs to hit BlackBerry 10 out of the park if it’s going to steal customers away from the runaway market leaders Android and iOS. What RIM has shown thus far, however, is a product that is at best slightly ahead of current offerings, and at worst on par with what’s currently available. But the companies RIM is competing against aren’t standing still waiting for RIM to make their move. By the time BlackBerry 10 is available on retail devices, iOS 6.0 and Android 4.1 Jelly Bean will also be available, perhaps featuring innovations that make BlackBerry 10 look flat.

Meanwhile, they’ve hired J.P. Morgan Securities LLC and RBC Capital Markets to assess the short and long-term business strategies, which could include licensing some of RIM’s products or even an outright sale of part or all of the company to another interested party. These trends paint a bleak picture for RIM, who has a few gut-wrenching quarters ahead for it as it attempts to retake the industry.

[via Yahoo!]

  • Red777

    what is there to license or sell if the legacy products are going to zero (the network business is only valuable and profit gnereating if there aree actually Blackberry users).  everybody is critical about RIMM betting it all on BB10 but it has no other cards to play.  there’s nothing to buy for another strategic (or license) unless BB10 is passable and minimally viable.  the only hope left for RIMM is for BB10 to be parity competitive (that’s a huge step forward from Blackberry 7’s current state) and then hope for stabilization and for AAPL/MSFT finally to blow up Google’s Android in the courtroom, which may cause other OEM’s to search for OS alternatives.  If in fact BB10 can run Android programs that are ported to the Blackberry App store as rumored, it at least buys time for RIMM.

    We’re down to the river card and we’re praying to be dealt an inside straight.  The odds are very long indeed.

  • Employee 10423

    Guess what time it is? That’s right! Calling out RIM time…

    Napoleon = Waterloo = RIM = BlackBerry Bold = bbb = 666 = Mihalis = Identity Crisis = Hidden Greek = Kryptos = Magnotta/Berlin = K4 = Kings in 4 = Devils 0 = Demons = No rest for the wicked 

    Any questions? Yeah, you. I’m calling you out. Also, the game.

    Be Bold = That 10423 is a pretty cool guy, eh knocks down demons and eh doesn’t afraid of anything.

  • http://www.facebook.com/people/Min-Zhu/100003101682617 Min Zhu

    RIM has strange culture and self distruct political environment.
     
    In RIM if a new hired person figure out major problem and introduce efficient approach, both manager and his buddy group member will proof their wrong approach works. just like someone point out driving a car is right way, pushing a car is wrong way, then both manager and his buddy group member will hate you, and proof that 3 person can also move the car by pushing it. cheating email will be sent to some vice president, saying like: see, the car moving, pushing a car is a natural part of the process, in order to deny new hired contribution of introducing skill of drive a car, they have to deny merit of driving a car.
     
    It is very strange company culture and strange company political environment, it promote stealing and cheating skill. RIM’s management may be a typical instance in MBA course.
     
    This culture deny or steal hardworking team members’ contribution/innovation, generate strange political environment, destroy RIM.

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