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Blackberry Profits Collapse

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http://www.guardian.co.uk/business/2011/sep/16/blackberry-rim-profits-collapse

BlackBerry maker Research in Motion is under intense pressure from Wall Street to change its leadership as a worse than expected profit collapse wiped £3bn off the company's value during morning trading in New York.

Shares were down 18% by midday on Friday after Thursday's announcement that income before tax had halved quarter-on-quarter to $414m (£262m). Goldman Sachs estimates its global market share has fallen to 9% from 16% a year ago.

The Canadian company was founded by its management, which is now being urged to step down. Jim Balsillie and Mike Lazaridis have been joint chief executives for nearly 20 years and also chair RIM's board. Each owns more than 5% of the company.

Edward Snyder at Charter Equity Research said the results were "a nail in the coffin of management. I don't think anybody believes their guidance. We're well past the point [where] these guys should be replaced".

The reversal in RIM's fortunes has been swift. Its revenues nearly doubled over three years, peaking at $5.6bn in February 2011, but have been in rapid decline for three quarters now.

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They've been making some truly awful business decisions over the last year. Their tablet, the PlayBook, was a complete joke - underpowered and didn't come with the business apps that core Blackberry business users need and demand. Plus they have delayed introduction of new phone models and just been all-round losers in the smartphone race. Can't believe heads haven't rolled at the board level yet.

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Their keyboards are good and would still sell a lot if it were not for... Their operating systems are awful.

At least they have their own operating system. RIM seem to be only company in the smartphone / tablet market with a clue about what's needed to take on Apple: having the hardware designers and software developers eating lunch from the same table. Unfortunately they lack Apple's culture of perfectionism.

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One word; Activesync

Once sme's realised they could provision mobile email directly from exchange onto a variety of manufacturer and OS independant devices they were chucking BES servers out the window faster than you could blink.

Sure you dont get all the control and policy options of BES but also you dont have to pay for the server, software and CALs or the extra BB charge to the network.

BES express was inadequate and 2 years too late.

Same old story, market leader got complacent and had the rug pulled from under them.

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One word; Activesync

Plus Android I would say. iPhone is dying and Android is taking over. The fact it has a superb Microsoft Outlook Activesync client makes it the new corporate standard IMO

iphone outlook client is just as good though

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Plus Android I would say. iPhone is dying and Android is taking over. The fact it has a superb Microsoft Outlook Activesync client makes it the new corporate standard IMO

Yes, and if quite a few small businesses switching to gmail / google apps, which means no need for any kind of "sync" middleware - Blackberry or otherwise.

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These fast moving consumer goods market companies are amazing to watch. As others have said a couple of wrong business decisions and you're stuffed.

edit: there must be mountains of discarded tech (phones, etc) out there.

Edited by Ash4781

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edit: there must be mountains of discarded tech (phones, etc) out there.

Heard an anecdotal about Palm burying hundreds of thousands of an older colour screen Palm Pilot in the desert rather than "flood the channel" with unsold stock and affect their image and the price of the next model.

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Android enables this nicely. Lowers the barriers to entry by providing the OS, and consequently the back catalogue of apps, plus some familiarity for the end user. All the handset companies have to do is focus on their USP (thinness, cheapness, being waterproof, stylish, etc.)

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Plus Android I would say. iPhone is dying and Android is taking over. The fact it has a superb Microsoft Outlook Activesync client makes it the new corporate standard IMO

iphone outlook client is just as good though

now yes though nokia were doing it on symbian while android was a twinkle in a developers eye.

If they had capitalised on this they could have stolen the business market. But the symbian c mail lient is too flaky.

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Yes, and if quite a few small businesses switching to gmail / google apps, which means no need for any kind of "sync" middleware - Blackberry or otherwise.

I'd be hard pushed to call activesyc middleware as its built into exchange and is really just a call over 443.

Agree with point re. Hosted mail services, though as anyone who has used google's mail filter and archive services or microsoft office 365 will tell you SaaS has some way to go yet for true enterprise level service.

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This doesn't surprise me one bit, they might still be popular in the business sector but as a personal phone they are the dumbest smart phones I know of. The OS on them is shocking poor compared to android and iPhone blackberry messenger is the only thing going for them, yet as far as I can tell they still come with £35 a month contracts for which you could get a much superior android phone for.

My 2 year old motorola milestone has more funtionality than current blackberrys do.

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My understanding is that RIM have introduced a QNX system that could bury competitors. No idea how effective that will be, but they also have no debt - for me that's a good reason to invest. But some time next year!

A couple of links:

http://www.zdnet.co.uk/reviews/mobile-os/2010/09/29/enterprise-features-in-the-blackberry-playbook-40090332/

http://www.nytimes.com/2011/08/25/technology/personaltech/research-in-motions-best-blackberry-yet-the-bold-9900-is-not-enough.html?_r=2

Any responses from tech dudes very welcome.

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This doesn't surprise me one bit, they might still be popular in the business sector but as a personal phone they are the dumbest smart phones I know of. The OS on them is shocking poor compared to android and iPhone blackberry messenger is the only thing going for them, yet as far as I can tell they still come with £35 a month contracts for which you could get a much superior android phone for.

My 2 year old motorola milestone has more funtionality than current blackberrys do.

True and i'm no fan of blackberry but go back to the core functionality that especially senior business users seek. Battery life, security, idiot proof os. Blackberry does these well, which is helping it hang on. Go to the chairman and tell him he needs to keep a usb charger close by if he's making anything above a few calls that day and that super spec android / ios device will be bouncing off your head faster than you can say p45.

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These fast moving consumer goods market companies are amazing to watch. As others have said a couple of wrong business decisions and you're stuffed.

edit: there must be mountains of discarded tech (phones, etc) out there.

Especially when one has not particular desire to own any of them so are not feeling pressured to keep up with everyone else.

My old Nokia was probably cutting edge about 15 years ago yet it does everything I want it too. A woman at my work turned up with a Blackberry a few months ago, all she does with it is call her husband/family and has confessed that she does not really know how to do anything else on it. It does make me wonder how many of these new gadgets are actually used to their full capabilites?

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True and i'm no fan of blackberry but go back to the core functionality that especially senior business users seek. Battery life, security, idiot proof os. Blackberry does these well, which is helping it hang on. Go to the chairman and tell him he needs to keep a usb charger close by if he's making anything above a few calls that day and that super spec android / ios device will be bouncing off your head faster than you can say p45.

The new Windows Phone 7, has positioned itself here, and a number of companies have moved from blackberrys to wp7. There is a huge gap in the market which isn't being filled/being filled badly by blackberry.

Long battery life, check (5 or so days standby, or well over a day of heavy usage)

simple idiot proof UI, check

good integration with business stuff, outlook, share point and office, check

Its another question if MS can actually pull it off...... but Android (and IOS to a lesser extent) suffering with battery life you never know. It might end up being a like xbox, coming from behind and grabbing the largest chunk of marketshare from an initial trickle... or not ;p

Edited by AteMoose

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http://www.bbc.co.uk/news/business-17559111

The company that makes Blackberry smart phones says it is withdrawing from the consumer market to concentrate on business customers.

Research In Motion has seen its sales fall behind the competition from Apple's iPhone and devices running on Google's Android software.

The Canadian company made a net loss for the three months to 3 March 2012 of $125m (£78m), compared with a profit of $934m a year earlier.

Speaking to Wake Up To Money on BBC Radio 5 live Larry Magid from CNET said that the company may look at selling the consumer arm of the business.

Profits have collapsed. Looks like a major change in strategy.

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