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BLACKBERRY’s Future UNCERTAIN As Company Shares COLLAPSE

Research In Motion Limited (RIM), the maker of Blackberry smartphone, is experiencing troubled times. The Canadian firm, which faced increasingly fierce competition from Apple iPhone and Google Android, saw its market share shrinks into single-digit percentage and stocks tumbled 80% in just 9 months. The rapid fall of Blackberry is a stark, frightening reminder of how fast technologies in modern world evolved, and those who fail to innovate, simply die out.
The fate of Blackberry and Nokia should and likely does send shivers down the collective spines of executives at other companies. Intel, Hewlett-Packard, Dell, Microsoft — all of the giants of the modern tech era must now be aware of how quickly it can all go sour.
Even Apple, sitting atop that heap today but facing market erosion, knows from experience that we could be writing the same story about it in five years.
It all began in 2003 when RIM pioneered the smartphone industry with its Blackberry devices and went on to become the most dominant smartphone maker. The company now finds itself in grave danger of becoming extinct, as both Apple and Google continue to swallow its market share. Some analysts even believe the company is now near its death and will be remembered soon as the historically company who liberated corporate email from the PC, freed mobile workers from being chained to their PCs, letting them email and be productive anywhere on phone.
At the height of its glory, Microsoft decided to challenge Blackberry. While successfully ended its reign of dominance, RIM’s business was built around robust corporate solutions that included hardware, software and secure services specifically targeting the enterprise.
It did
well in this market and
defended it well even against
Microsoft’s continued assault
through advancements in
Exchange Servers and Windows
Mobile OS.
But problems began with the
release of Google’s Android and
Apple’s iOS. Back in 2006, the
market is all about Blackberry
and Windows Mobile as the
future of smartphones, today
things are turnaround and
transformed so thoroughly that
it becomes Android and iOS.
Blackberry market share in the
US, once impenetrable over 60%,
is now down to 9%, while
worldwide 3%. One of its
greatest failures was lack of
innovation. When talking about
the most innovative companies
over the past five years, RIM
rarely enters the discussion.
When you dominate a market
like RIM did, there is a
tendency to become complacent
and believe you are untouchable.
However when you combine the
rapid pace of technology
advancements with a free
market society, no company is
ever really safe at the top.
Similar case happened to other
fallen giants like Nokia and
Yahoo! in recent years.
RIM’s stock prices was over $60
in March, now $13
Speaking during the conference
call on Thursday, RIM co-CEOs
and founders Jim Balsillie and
Mike Lazaridis announced they
are taking a $1 a year salary,
and were adamant about finding
ways to curb the sharp decline
in the share price, signaling that
they might be seeking for
outside help.
A few years ago, Research in
Motion appeared to have an
unassailable position as the
dominant provider of what used
to be known as “PDAs.” Now,
many in the industry and on Wall
Street have concluded that it is
a dead man walking, soon to join
Palm and other early movers like
Atari and Netscape as
technology has-beens.
Its fall is twined with the
equally dramatic reversal for
Nokia, which had been by far
the leading maker of cell phones
globally throughout the first
decade of this century. While
both Nokia and Research in
Motion are still multi-billion
dollar franchises, their business
have deteriorated with stunning
speed.
Blackberry once had a 60%
market share and successfully
defended against Windows –
before the rapid rise of iPhone
that is
Some predicted a quick firesale
or acquisition of the company as
RIM still has deep wireless data
patent portfolio, carrier and
enterprise deployments, and
hardware expertise. BGC
Partners analyst Colin Gillis
however, believes that the
company is not for sale due to
market size, but management
could focus on three product
lines to protect its brand,
especially in the low end
markets. He though
recommended selling RIM
shares.
Jim Suva of Citigroup, in the
conference call, asked about the
restructuring efforts, and CEO
Balsillie said that it’s
“absolutely not business as usual
at RIM. We’re going to do what
it takes to get the value for
shareholders in the company,
and we’re totally redoubling our
efforts on the execution here.”
Balsillie and Lazaridis have
traditionally struck a defiant
tone during RIM’s earnings
events. The latest conference
call, though, was different, with
the executives acknowledging
the need for vastly improved
strategic direction. With revenue
down, earnings weak, products
delayed, and enthusiasm for
Blackberries waning, the
company has seen the value of
its shares plummet in the past
few months, and its brand
severely tarnished.
Newtechcentury.com

Posted by on December 19, 2011. Filed under BUSINESS. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

18 Responses to BLACKBERRY’s Future UNCERTAIN As Company Shares COLLAPSE

  1. Exhaust Blown Diffuser

    December 19, 2011 at 5:18 pm

    Even kabovas have blackberries now, most people are going for iPhones blackberry is now like nokia 3310 in the old days..

  2. nana

    December 19, 2011 at 6:58 pm

    Very soon iphone will pierished I
    wonder which phone will stand the
    test time enyway wll change as Tech
    Changes

  3. nana

    December 19, 2011 at 7:13 pm

    Very soon iphone will pierished I
    wonder which phone will stand the
    test time enyway wll change as Tech
    Changes Hope and trust RIM management
    Wllnot dissapoint BB users

  4. mandmore

    December 19, 2011 at 7:47 pm

    Buy wat u can afford and wat is available at the time

  5. JOHN KAY

    December 19, 2011 at 7:51 pm

    CiNana uli cikopo saana, apo pelee tawaishiba correct spelling ya perish?

  6. Honda

    December 19, 2011 at 8:03 pm

    Very SAD for RIM, I hope the co-CEOs will come up with a solution.
    Personally, BBs are very special gadgets, the functionality is just awesome. The cost does not really matter. As a matter of fact, anyone who can afford a BB can also afford a Google Android based device or even an Apple iOS. Some gadgets, though fancy, are not very user friendly. For example, most people will find it difficult to use a phone which lacks a querty key board, me included. Touch screen is simply not my thing. So, BB still carries the day. The apps are simply superb!

  7. BB user

    December 19, 2011 at 8:15 pm

    Few comments here. Many have small nokiaz.

  8. Ba W.I.S.O.

    December 20, 2011 at 2:31 am

    With Steve Jobs gone, Android will overtake the iPhone. Infact Android keeps making market gains on the iPhone and should surpass it in a year or two! For the forseeable future, Android is the way to go!

  9. CROSSFIRE...

    December 20, 2011 at 2:54 am

    Ever tried a phone with Android 2.3? Simply the best…

  10. tuo

    December 20, 2011 at 5:31 am

    Got the 4GB Google Android,sold it to Hakaivotela Heka coz his blackberry could no longer access Zambia Watchdog apart from Tumfweko.com.But I warned him that its not jst the balckberry market deteriorating but also his Hai Hai Party as they should get away with the Bantustan mentallity to new products on the market like Don,t Kubeba,More money in yo pockets,low taxes and therefore I suggested he comes up with this:More mabisi in yo buckets,low fats…lol!

  11. tuNYENGEko.com

    December 20, 2011 at 5:50 am

    Got the 4GB Google Android,sold it to Hakaivotela Heka coz his blackberry could no longer access Zambia Watchdog apart from Tumfweko.com.But I warned him that its not jst the balckberry market deteriorating but also his Hai Hai Party as they should get away with the Bantustan mentallity to new products on the market like Don,t Kubeba,More money in yo pockets,low taxes and therefore I suggested he comes up with this:More mabisi in yo buckets,low fats…lol!beeeeeaaaaachhhh,hate or love!

  12. mk

    December 20, 2011 at 7:27 am

    The writting has always been on the wall. I always told people that you needed to walk with a manual to fully appreciate the blackberry when the nokia had things happening at the touch of a button. RIM is as rigid as their products. RIP as we move on

  13. SEGULA GIGO!!!!

    December 20, 2011 at 8:55 am

    @NANA YA BA!!!

  14. Chimbwi with a masterplan

    December 20, 2011 at 9:02 am

    Tunyengeko wachilamo please don’t remind us of HH.please spare him for now as he is a nonentity and not a threat at all. Your jokes have ceased to be funny. Get a grip chikala.

  15. foolish zambians

    December 20, 2011 at 9:29 am

    some comments here cant applly as most user can’t aford such fons.zabians stil behind in teghnology.report about advancment in tugilligili o ponography

  16. mandmore

    December 20, 2011 at 2:43 pm

    I agree with u,some pipo are jst talking wen they jst use ordinary fons!

  17. MMC Chilebabes

    December 20, 2011 at 4:00 pm

    NOKIA WILL DEFINATELY BE THE NEXT BIG THING AGAIN, WINDOWS 7!!!!

  18. Timothy Banda

    December 20, 2011 at 5:37 pm

    Were there is will, there is a way. Don’t worry bb users a solution will b found.

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