Research in Motion Struggles with its Latest Drops in the Market
Although, it has been a while since RIM has tried to move beyond its dropped sales in the past couple of months, it is now inevitable for them to ignore the latest drops. On Tuesday, RIM went on to suggest that it was time for them to take under consideration “strategic business model alternatives” which might just build the interest of investors back in the company.
It is however true, that RIM has waited quite a while to bring about these changes. It has been over a year that RIM has been under constant threat of being taken over shortly after the deal for Motorola was closed by Google. It was analyzed that RIM might be a good prospect for companies like Amazon, Microsoft or even Chinese firms that could bid up a good price for the company.
The company officials denied any such possibilities and suggested that things were definitely looking brighter in the near future. According to the executives, Blackberry managed to offer its customers a perfect combination of features with the latest gadgets which included touch-screens, better security options, push emails and much more. They also added that the Blackberry Play Book would offer close competition to Apple’s iPad.
But in reality, Blackberry has failed to continue on with its plans and by March 2012, the company finally decided to disclose the fact that sales had dropped by a surprising 20 percent. A vast majority of the Blackberry users had decided to switch to tablets like iPhones as well as other Android options in the market. The company expects to experience even more losses as of this year.
The company’s weaknesses are now reflecting clearly in their value on the stock market which dropped by about 76 percent since last year and is now down to a mere $5.4 billion. The National Bank Financial on Wednesday used the analogy of a Casino to suggest how Blackberry’s share investment is like “going to the Casino.” This media attention has now caused things to get quite serious for the Blackberry executives and they are now planning up on a strategic review and a vast change to bring the company back on track.
As far as these latest changes go, the company accepts that it might not be able to bring the sales up but it would definitely be looking at other prospects like partnering with another software house or at least acquiring the license for their services. Thorsten Heins suggested sometime earlier this year that there was no need to bring about any “drastic changes” just yet. According to Ehud Gelblum, Morgan Stanley analyst, RIM is not exactly considering closing down the company but they do plan on either outsourcing their services or minimizing their operational parts.
According to many analysts who have kept a close watch on RIM’s activities and current status, they do believe that even though its sales have dropped drastically, it does remain to be a good bargain and a potential deal for software or other telecommunication company.
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