Riviting News

Can RIM find a way to be successful?

Ok. I already said I’m an IPhone bigot. To add to that my next laptop will be an Apple product. Yes, I think I drank the koolaid. But I still have to find some way of supporting a successful Canadian IT company. Right now its the biggest and best IT Company in Canada. With the loss of Nortel, RIM became its only successor as the leader in the Canadian IT industry. But in recent times it has been floundering.

  1. The playbook launched in April , 2011.  Based on QNX and providing Adobe AIR Support, Flash support and a webkit based browser.  It fully supports 3rd party email but requires tethered access to a blackberry to get blackberry mail.   Expecting to ship 2-3 million units they only shipped 700000.  Rumor has it that these were shipped to resellor who ended up getting stuck with the stock.  Playbook market share was pegged at 3.3 percent.  Apple is at 61.3 percent.
  2. To get it to market quickly RIM launched the Playbook without embedded support for their own email.   To get email you needed to tether it to your blackberry.  They promised that it would resolve this issue with in 60 days of launch.  Well their revised promise was February 2012.
  3. Between October 11th and October 14th, RIM suffered a huge global service outage.  It’s estimated that RIM earns about $3.4 million per day from their service.  That means that they earned $17 million dollars during a service outage.  Not bad.  Well some people didn’t like the fact that they were paying for a service that didn’t work.  On October 26 a Class action suit was launched against them.
  4. Basis International LTD is suing RIM for using their trademark “BBX” for RIM QNX operating system.
  5. In December, RIM decided to get more market traction by discounting their Playbooks.  They cut prices from $300 to $199, selling the units at a loss.  It was a great fire sale.  Best buy stated that they sold out all their playbooks and had to cancel orders since demand exceed their expectations.
  6. On Friday, RIM announced that it no longer expected to meet its already adjusted full-year earnings.
  7. RIM announced that it would have to take a hit of nearly half a billion dollars ($485 million dollars to be exact) on its playbook tablet.
  8. CIBC brokerage cut its price target for RIM from $26 to $18.9 per share.  Wunderlich Securities cut their price target from $24 to $16.
Positive news is that the analyst feel that extending use of their network to 3rd parties is a positive thing.  But is their anything else?  I think the company in a prime target for a takeover.
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