re: RIM Empire Didn't Strike Back At BlackBerry World
jtonge, honestly, you did a much better defense and justification for buying BB 10 than Heins did in his 40 minute introduction presentation last week. I do believe that RIM could always sell enough BB 10 type phones to a hardcore base of subscribers that are RIM fans or faithful. I would venture that they could have a hardcore base from 30-60 on a world wide basis. I do have a lot of doubts that they can grow higher above the 75 million base, because there will be defections and then trying to win over converts in the fact of the huge supply of smartphone choices, which will include the super phone, IPhone 5 which will be supplanted by IPhone 5S, IPhone 6, etc, etc. Then, the Androids will be proliferating everywhere on the planet too with upgrades.
So, that is the main problem, RIM could retain some hardcore base. Lets just say they retain 70-80 and that is the max they can attract for the next year or two.
Then, if that is the case, the company has to shrink and lay off and figure out drastic ways to cut costs and overhead to give a return to shareholders. RIght now, RIM is running at the rate of costs as if they have a base of 150 million. That is just not going to happen.
So, in other words, it is pink slip city in Waterloo someday, and that will happen when they realize they cannot grow past a hardcore base.
As for the main point of this article today, Eric Zeman is right that BB World was a failed chance to showcase everything so much better, but, the problem is that BB World could not be cancelled in order to wait and allow for a better show such as in August or September, when, they would be able to show off a better BB 10 unit.
People are not stupid. The calendar came up and this was the best they could scramble to put together for a show. This is not Heins fault, as the show was already scheduled before he took over.
It is entirely Mike and Jim's fault for everything that went wrong with the RIM image and failure to upgrade BB phones by 2010 to stay in the competitive race.
You even admit that BB 6 was a poor OS/Browser. True, BB 7 which took so long to come out was better, but, still woefully behind the competition.
Now, each day Heins is on the job, the more fault can be laid on his doorstep. Many feel he is not the right person to save a company from its current destiny. That may be true, and he may be an interim CEO and RIM may have to resort to some outsider to do the dirty business of shrinking the company and just selling phones to its hardcore base.
One proviso, if RIM starts reporting losses Q by Q, the stock price will be severely punished much more, sub $10. That will mandate pink slips, shrinking, and finding its hardcore market and trying then to eck out a profit and run the business on that basis. The stock price will be
$5 to $10 once the final story is written and if they can shrink to a profitable company will a phone that satisfies a hardcore base on a consistent basis.