The Beginning of the End for RIM?

by Gaurav Kheterpal on September 2, 2010

Image Courtesy CNN Money

There’s no doubt that RIM is currently facing dwindling fortunes. While the company has tried more than one ways (Blackberry Torch, BlackPad & Cellmania) to curb the declining sales curve, none of the moves has worked. To make matters worse, it has got into all sorts of legal tangles with various governments including Saudi Arabia and India. 

If that wasn’t enough to harm RIM’s reputation, it has fallen out of favor with an increasing number of Wall Street analysts. The stock price has collapsed from its 2008 $140+ highs to mid 40s and there are no signs of a revival either.  

Is this the beginning of the end for RIM?

I’ve always been a huge fan of Blackberry. In fact, my first smartphone was a Blackberry and I still use it sparingly. And then, the iPhone happened followed by the Android revolution. Unfortunately, by the time RIM realized that it was in for some serious competitions, its rivals had already made their mark. RIM is in a sorry state and it’s corporate loyalties are fading fast. A recent survey in the United States and the U.K from Sanford C. Bernstein Ltd. suggests that nearly Three-quarters of companies are now opting for alternative devices such as the iPhone. In U.S. alone, it’s far worse with nearly 83 percent companies switching loyalties to iPhone and Android. 

The company pinned its hopes big time on Blackberry Torch but the device failed to appeal to the masses. PC World mentions “With a sluggish browser, a small and low-resolution touchscreen and a cramped keyboard, the phone may only appeal to previous Blackberry users and loyalists.” and I couldn’t agree more on that. Has RIM stopped reinventing and innovating? Obviously, it hasn’t. It’s fair to say that Android and iPhone have outpaced RIM in innovation. 

RIM’s stock has plunged nearly 15 percent and is looming close to the 52-week low mark. Many analysts believe that the company’s outlook is “scary” and it might well be put up for sale in the coming months. The company has received a lot of bad press over the looming bans in Saudi Arabia and India which has understandably hit its reputation in the stock market. Though RIM managed to negotiate deals with both countries in order to avoid the ban, its image has been tarnished well beyond repair. 

Is there a way out for RIM amidst all the doom and gloom? Your thoughts are welcome. 

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Written by: Gaurav Kheterpal. www.digitcom.ca >. Follow TheTelecomBlog.com > by: RSS>, Twitter >, Identi.ca >, or Friendfeed >

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