Menu

Trouble at RIM: Will the BlackBerry Company Consider Selling?

By
September 8, 2011
  • Jaguar Financial Corporation CEO Vic Alboini, an investor in struggling Research In Motion, is urging the BlackBerry maker to consider selling the company. He has recommended that RIM form a committee of independent executives to explore the proposal.
  • According to the article: “RIM is seeing its once commanding presence in the smartphone market eroded by the likes of Android and Apple’s iOS: where a year ago RIM accounted for 19 percent of the market, second-quarter figures from Gartner put the company’s current share at 12 percent.”
  • Alboini suggests that selling RIM would maximize the company’s value to investors, who have watched their investments in the Canadian company significantly decline during the last year.
  • “RIM has been hanging hopes for its future on the BlackBerry PlayBook tablet, as well as a new swath of smartphones expected to land in 2012 based on RIM’s recently-acquired QNX operating system — the same OS used in the PlayBook,” reports Digital Trends. “So far, industry response to the PlayBook has been muted, with many citing its reliance on a BlackBerry handset for email as a major impediment — and U.S. mobile carrier Sprint recently backed out of plans to offer a 4G version of the PlayBook, citing lack of customer interest.”

Is BlackBerry PlayBook Heading Down the Same Road as the TouchPad?

By
September 6, 2011
  • It looks like HP’s TouchPad is not the only tablet to face a challenging market.
  • Best Buy has placed RIM’s PlayBook on sale, discounting the 64GB model by $150, while the 16GB and 32GB versions have been marked down by $50.
  • “Research In Motion’s PlayBook has had something of a rough ride since its launch in April this year,” reports Digital Trends. “Reviews have been mixed, while just a month after appearing on shelves, almost 1,000 of the tablets had to be recalled due to unspecified faulty hardware issues.”
  • Additionally, Sprint announced last month that it was dropping its plan to bring the 4G PlayBook to its network, leaving the device without a major U.S. carrier.

Exclusive Look Inside RIM: Rise and Fall of the BlackBerry?

By
July 14, 2011
  • In the wake of recent negative press and pleas to management made public, BGR interviewed “multiple” ex-RIM executives and learned stories about the company’s overall “lack of vision and leadership.”
  • The two CEOs, Jim Balsillie and Mike Lazaridis, are described as brilliant “irreplaceable leaders” who unfortunately did not listen to the marketplace over time. (For example: “There will never be a BlackBerry with an MP3 player or camera.”)
  • One significant problem involved the three-year roadmap that focused on refining technologies on existing phones, not on identifying or shaping future trends.
  • For example, one executive claimed RIM was proud of how LITTLE data a user would use so there was no R&D done on browsers.
  • Another claim suggests RIM views carriers, rather than the end users, as the customers.
  • In the tablet realm, execs claim the PlayBook was sold to carriers below margin and is not making RIM any money. Moreover, RIM did not reveal that the PlayBook would not have native email until the last minute. “RIM is notorious for dropping these bombshells at the 11th hour on the carriers, and the PlayBook not having native email was a shock to the carriers.”

PlayBook Outsells Motorola Xoom in its First Month

By
May 23, 2011

Research In Motion has had an interesting month. ETCentric’s story submission stream has featured a number of PlayBook-related stories in recent weeks… from the tablet’s weak initial launch — to the unfortunate recall of 1,000 units due to faulty operating systems — to the news that it had surprisingly sold 250,000 units during its first month of availability. In fact, despite mixed reviews and April’s slow launch, RIM’s PlayBook managed to outsell the Motorola Xoom in its first month.

In April, initial reports indicated a disappointing launch, with many units reportedly remaining on shelves during the first days of availability. Many reports credited the ongoing success of Apple’s iPad and the current lack of apps made for the PlayBook. Reuters reported: “RIM, which has priced the PlayBook to match the iPad, has struggled to win consumer fans since Apple’s iPhone and a slew of devices running Google’s Android entered the smartphone fray.”

Less than one month later, reports circulated that RIM had recalled approximately 1,000 units that were shipped with what the Wall Street Journal described as, “faulty operating systems which may have prevented users from performing the initial setup of the device.” The recall fell on the heels of RIM issuing a first-quarter profit warning, after citing lower-than-expected BlackBerry sales.

Yet not all news was negative. By the third week of May, RBC Capital Markets reported that the PlayBook had sold 250,000 units in its first month (it took Motorola’s Xoom two months to reach the same numbers). If the pace of PlayBook sales remains consistent, RIM will sell over 2 million units this year (slightly less than most analysts’ sales estimates for the tablet).

Of course, these numbers don’t come close to iPad sales, so the question remains: Is there a current tablet that is ready to compete with Apple’s iPad (at least in the near term)?

Related Reuters article: “RIM launches PlayBook but fans don’t play along” (4/19/11)

Related Wall Street Journal article: “RIM Recalls 1,000 PlayBook Tablets” (5/16/11)

Related BGR Media post: “250,000 BlackBerry PlayBook tablets sold to date, RBC says” (5/18/11)

Related Wired review: “BlackBerry PlayBook Tablet Lacks All the Right Moves” (4/13/11)

Related CNET review: “BlackBerry PlayBook review: A great surprise” (4/13/11)

Related SmartBlog post: “Will PlayBook play nice in the cloud?” (5/23/11)

Top Stories
More News