RIM Continues Death March

I have not published anything on RIM in over a month. Abysmal $½B operating loss quarterly report and annual angry shareholders meeting is a good time to blog. The CEO has asked shareholders for patience, tough request when the company has lost 95% market value since 2008. The CEO still thinks next product will save the company in 6 months. This direction failed before and will fail again.

I consider BB10 (new OS) chances to be RIM’s savior close to zero. When it will become available early 2013, RIM market share will be in low single digits. The fundamental problem management has to realize is that today’s mobile operating systems market cannot sustain more than 3 players. Earlier in the days the market was ruled by RIM Blackberry and Nokia Symbian with 2 other smaller players: Palm and Windows Mobile - last three has vanished. Today we have iOS and Android with Windows Phone distant third. There is no place for the 4^th player.

RIM is trying to save $1 billion in operating expenses. This is only temporary measure before RIM will need to shed more jobs and cut more costs. RIM has lost developers mid share and consumers appeal. Staying the course will sustain destruction of shareholders value. RIM should discontinue its phones and operating system like Nokia did with Symbian. Sell patents and BlackBerry Messenger global network. Just that will exceed its current market value.