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Topic: BlackBerry

RIM responds to anonymous 'open letter' to the CEOs

Summary: RIM has just sent me a statement in response to the anonymous 'open letter' published by BGR earlier today.

Adrian Kingsley-Hughes

By for Hardware 2.0 |

RIM has just sent me a statement in response to the anonymous 'open letter' published by BGR earlier today.

In the interests of fairness I'll post the statement in its entirety here.

An 'Open Letter' to RIM's senior management was published anonymously on the web today and it was attributed to an unnamed person described as a 'high level employee'. It is obviously difficult to address anonymous commentary and it is particularly difficult to believe that a 'high level employee' in good standing with the company would choose to anonymously publish a letter on the web rather than engage their fellow executives in a constructive manner, but regardless of whether the letter is real, fake, exaggerated or written with ulterior motivations, it is fair to say that the senior management team at RIM is nonetheless fully aware of and aggressively addressing both the company's challenges and its opportunities.

RIM recently confirmed that it is nearing the end of a major business and technology transition. Although this transition has taken longer than anticipated, there is much excitement and optimism within the company about the new products that are lined up for the coming months. There is a fundamental business reality however that following an extended period of hyper growth (during which RIM nearly quadrupled in size over the past 5 years alone), it has become necessary for the company to streamline its operations in order to allow it to grow its business profitably while pursuing newer strategic opportunities. Again, RIM's management team takes these challenges seriously and is actively addressing the situation. The company is thankfully in a solid business and financial position to tackle the opportunities ahead with a solid balance sheet (nearly $3 billion in cash and no debt), strong profitability (RIM's net income last quarter was $695 million) and substantial international growth (international revenue in Q1 grew 67% over the same quarter last year). In fact, while growth has slowed in the US, RIM still shipped 13.2 million BlackBerry smartphones last quarter (which is about 100 smartphones per minute, 24 hours per day) and RIM is more committed than ever to serving its loyal customers and partners around the world.

The statement was sent to me via RIM's PR channel and, oddly enough, it just as anonymous as the original 'open letter' in that there's no attribution.

Topic: BlackBerry

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21 comments
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  • $3 billion in cash?

    That is pocket change to Apple. I would suggest that Apple just buys RIM but there is no point. RIM will be bankrupt very soon. Their phones are pathetic. Their tablet is pathetic. Their consumers are pathetic. Don't worry, you will all soon buy iPhones and iPads. You'll have to. No one else will be left since no one can make a profit on these devices other than Apple. YEAH!!
    woulddie4apple
    Reply Vote

    • Well I for one certainly hope that never happens!

      @woulddie4apple Competition is key to any industries health. I would hope in the end RIM remains, WebOS comes alive, Android thrives, And MS/Nokia show some vigor. Only then will the consumer trully benefit. Oh and I do want every success for iOS of course:P

      Pagan jim
      James Quinn
      Reply Vote

    • RE: RIM responds to anonymous 'open letter' to the CEOs

      @woulddie4apple Would you stop the pretend "Apple fan-boy" trolling now? Its getting old already.
      I12BPhil
      Reply Vote

      • I find his banter some what...stimulating

        @I12BPhil
        A far cry from the "haters" that seem to populate these blogs.

        :|
        Tim Cook
        Reply Vote

    • RE: RIM responds to anonymous 'open letter' to the CEOs

      @woulddie4apple While Apple may be smacking around everyone and their brother, competition by nature makes all products better not equal. It sounds strikingly similar to the MS vs. Apple contest in the 80's and early 90's. How crappy would the world be if Microsoft succeeded in disassembling Apple? Now it's Apple vs. The World with respect to smart devices. That said, RIM is showing signs of implosion the likes of which we haven't seen since the .bomb era. Too bad f-edcompany.com is gone.
      tschuh
      Reply Vote

    • RE: RIM responds to anonymous 'open letter' to the CEOs

      @woulddie4apple
      if you're right, the Apple's competition will be re-editing Apple's MAC famous ad but in reverse.
      Check all the fanbois in iSuits: http://www.youtube.com/watch?v=OYecfV3ubP8
      The hammer lady courtesy of RIM :)
      SinfoCOMAR
      Reply Vote

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  • RE: RIM responds to anonymous 'open letter' to the CEOs

    This is just a generic answer to the letter. It would have been better if the CEO will directly answer it.
    erichmercado
    Reply Vote

  • Blackberry's Strength is in the Enterprise

    Blackberry's major strength is in the Enterprise. Their BES server makes it very easy to administer hundreds of devices. They really need to focus on their core competencies while addressing the recent changes in consumer preference to touchscreen technology. I can't name one system off the top of my head that can efficiently manages this process other than RIM.
    tom.harney@...
    Reply Vote

    • Blackberry's major weakness ...

      @tom.harney@... is it's fat, overpaid, zero-innovative, flatulent executive board.

      RIM .. RIP.
      thx-1138_
      Reply Vote

  • What is this? Is RIM the teen to hate?

    Many people in and out of the micro-communicator industry carry on more like this business is a game of Dungeons/Dragons. People get polarized into hating one company and championing their favs. It's like the participants themselves: if a company were a teenager, who stumbled, we'd see all his "friends" attack him as clumsy, "oh, he's so not!" There's not a single company any different than a teenager. They come up with brilliant ideas, they come up with cludgy ideas, they look sexy, they get acne and look terrible, they ace the exam on quadratic equations, get turned down for the prom, score a touchdown for the football team, smash their car, and play killer rock and roll guitar. The world needs more venomous hate, not. We need more companies, rather than fewer. <br><br>Frankly, I hope they all make it. RIM included.
    Transdermal
    Reply Vote

  • RE: RIM responds to anonymous 'open letter' to the CEOs

    The arrival of Windows Phone 7 devices really may have been the final nail in RIM's coffin. Of course they are still selling tons of devices, but they are so far behind Apple, Microsoft and Google that its reaching the point of no return. I truly believe there is room for three strong mobile ecosystems, but its very doubtful there is room for four. RIM had an excellent run, but their unwillingness or inability to innovate at a rapid pace has cost them dearly.
    Tiggster79
    Reply Vote

    • RE: RIM responds to anonymous 'open letter' to the CEOs

      @LynxSteve I'd also like to know how RIM is "behind" Microsoft when RIM has 3x the amount of the mobile OS marketshare of Microsoft as of the end of 1Q11 - and that INCLUDES Windows Mobile 6, Windows Mobile 6.5 AND Windows Phone 7 in Microsoft's tally (http://www.gartner.com/it/page.jsp?id=1689814 - Table 2: RIM: 12.9%, MSFT: 3.6%) In fact, if we look year-over-year, both Microsoft AND RIM are losing mobile OS install base marketshare at a rapid pace (RIM: -6.8 y/y; MSFT: -3.2% y/y).

      Even if we ignore marketshare numbers, RIM's strength has always been the enterprise and/or small corporate customer. They tried to steer away from this in an attempt to ride iPhone and Android's coattails and are now in disarray. But compared to WP7, Blackberry is significantly better for corporate users. WP7 is lacking too many features to make it useable and secure in the enterprise because WP7 is Microsoft trying to do the SAME THING thing RIM did that got RIM into this mess: WP7 threw nearly every feature OUT that had been in WM6/6.5 in order to try to make a broad-market appeal smartphone. Arguably, that is why Microsoft's install base marketshare numbers are on the slide - WM users are leaving Microsoft for Android, not picking up WP7 phones, and WP7 hasn't been able to make up for the losses.

      I'd like to see all four remain, but I don't think even three will be "big". I'm pretty sure for the very forseeable future, it's always going to be a two horse race between iOS and Android with Microsoft and RIM fighting for distant third.
      Captiosus
      Reply Vote

      • RE: RIM responds to anonymous 'open letter' to the CEOs

        @Captiosus : all 4 will remain. all the trolls denigrating RIM are about 12 years old. They haven't read the last paragraph of the reply, its probably too long for their attention span.
        deaf_e_kate
        Reply Vote

  • What is this? Is RIM the teen to hate?

    Sorry, double post deleted by poster.
    Transdermal
    Reply Vote

  • RE: RIM responds to anonymous 'open letter' to the CEOs

    My biggest complaint with RIM has always been the quality of their phones. They are just made so cheaply that it seems like every 6 months they just start dying.
    CowboyJake
    Reply Vote

  • RE: RIM responds to anonymous 'open letter' to the CEOs

    That is an interesting marketing ploy. I think I will post an anonymous letter on my website complaining about my services. Then reply to myself how it is not true and how great I am. Amazing!
    donrmiller@...
    Reply Vote

  • The response is like cotton candy.

    ...Full of air and with little actual substance.

    If the original post comes from even a "mid level" person, then he probably has a pretty good grasp on what management's doing. The fact that they're not doing the things necessary, and that customers are classifying their stuff as junk lends credence to the Original Poster.

    As to why this person didn't work within the system? Does anyone seriously have to question this? If you've made a diplomatic attempt within the company to make change, and no one is responsive and may even be hostile, then you have no choice but to bring it to the public. That person is anonymous simply because he/she doesn't want to lose their job, but wants to see change within the company. There was no actual strategy or secret information involved, so it wasn't a criminal type of thing.

    The fact that their management in their response seems so vacuous about this tells me they really have no idea what to do.
    Zorched
    Reply Vote

  • RE: RIM responds to anonymous 'open letter' to the CEOs

    I think the vapid response letter proves, pretty much without a doubt, that the heads of RIM are clueless and the anonymous letter writer is spot on. It seems to be written to placate their shareholders. I can't tolerate spineless leaders that can't stand up and take responsibility for their actions when they are failing. This is really quite simple. The RIM CEOs should publicly address this letter. Hold a press conference, take some feedback and give real responses instead of spit-shined horse crap. If someone is trying to throw you a rope when you are drowning, are you going to look at it and turn your back, or better yet, say it isn't good enough?
    puffmanxx
    Reply Vote

  • Action is needed before it is too late

    I think that RIM must enter a merger with Nokia AND Microsoft. It is the only way that the three of them can catch up to Apple. Each has some strengths and likely fatal weaknesses. But alone, one by one they are doomed.
    pessimist
    Reply Vote
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