RIM failing on design, functionality

Changing consumer tastes and the encroachment of Apple and Google into business devices are root of RIM’s problems, Analysys Mason principal analyst Ronan de Renesse argues.
 
The Canadian smartphone maker has called in bankers to lead a financial review of its operations, after issuing a profit warning for its fiscal 1Q13 – covering the three months to June 2. Newly appointed chief executive Thorsten Heins predicts the firm is likely to report a loss for the period due to lower device shipments and pricing competition.
 
De Renesse believes those lower shipments are due to consumer’s desire for media content, which he notes is now more important than having a physical keyboard. “The demise of the BlackBerry is partly due to the device’s inability to address media-hungry customers,” he states.
 
RIM is also in trouble as Apple and Google encroach into its traditional stronghold of the business user, de Renesse argues, noting the rivals have “gained substantial market share in the business device and services markets,” over the past five years.
 
Capping off an ugly week for RIM, Canada's finance minister says the firm won’t be bailed out by the government. Jim Flaherty says RIM is an important company for Canada, but that it needs to reorganize to regain profitability, and do so on its own, the Financial Post reports.

 

 

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