RIM Falls Yet Again – Three Quarters in a row

Research in Motion has yet again failed to meet investor or analyst expectations with their second quarterly results which was announced after trading hours yesterday, September 15th.

RIM, which is facing stiff competition from Apple’s iPhone and handsets running Google’s Android software, said it shipped 10.6 million BlackBerry smartphones during the quarter and 200,000 PlayBooks, RIM’s rival to the iPad.

Analysts had expected BlackBerry shipments of 11.9 million units and 700,000 PlayBooks.

RIM co-chief executive Mike Lazaridis said the “past few quarters have been challenging,” but expressed confidence the company is “on track to return to growth in the third quarter and beyond.”

Editors Note:

How can RIM continue on this path of misleading investors and customers?  They do not have a viable strategy to rebound and provide customers with products that are compelling or desired.  The company is betting the farm on QNX, which for all intents and purposes has failed in the eyes of consumers based on the dormant Playbook sales.

RIM made some serious strategic errors in my opinion.

1.  They never should have released the Playbook so pre-maturely.  The product should have been absolutely solid and finished.  Base functionality such as email, calendar and contacts must be natively supported  without the reliance of another device, such as the Blackberry.

2.  They did not regard Apple or Google to be a threat to their perceived dominance of the Enterprise customer.  That was a fatal mistake as it now appears that Apple’s iPhone is making serious inroads in many Corporations.

3.  RIM’s executive should have been more concerned about running the company than buying a hockey team.

These factors as well as others pretty much as spelled the end of an era for RIM.  They can not and will not recover.  Too little to late unfortunately.

About Grant Fengstad

I’m a technology professional in the travel and transportation sector and have been very involved with the Internet for over 20 years.