RIM: Really, the delay in the new BlackBerry 10 OS is a good thing?
Summary: So let me get this straight: According to the company's CEO, the delay in the new BlackBerry 10 OS, the one that is supposed to turn Research in Motion around, is good for the company?
So let me get this straight: the delay in the new BlackBerry 10 OS, the one that is supposed to turn the company around, is good for the company?
That is what RIM's new CEO, Thorsten Heins, stated at the annual company meeting on Tuesday. In addition to wanting to get the device right, he said that pushing the release date was good because that will mean less competition over the xmas holiday.
At this point in listening to Thorsten Heins speak, I slapped my forehead. There is just so much wrong with what was and was not said. It makes you question that validity of the statements.
First, I don't get how missing the holiday season, and the billions of dollars consumers spend can be a good thing. The reality is that RIM needs cash. Without an influx it will have no way to produce, market and deliver the new device. Never mind that more iPhone and Android devices will have taken what few non-corporate consumers were left to Blackberry.
Second, there was no mention of the sale of the company. No mention of what options JP Morgan may have discovered, or put on the table. No mention of new applications which are sorely lacking for this device. And no mention of what will happen if the device is a non-starter.
It appears to me that RIM is simply buying time.
They need time to get a product in a ready state. Time to get a partner to invest in the 'potential' future. And time to continue to unwind the company. That is what I heard, never mind what was said.
The stock price dropped 5% after the conference ended according to Reuters. The article touted all of RIM's accomplishments, but failed to ask, "what have you done for me lately?"
There is a general consensus that, at this juncture, the only thing that is holding RIM afloat are the corporate users. And according to CNNMoney, “it's not just consumers that are abandoning RIM's QWERTY devices in favor of iPhones and Android smartphones. A growing number of corporate customers are ditching RIM for so-called "bring your own device" programs that let employees use their smartphone of choice at work.”
Vowing to return RIM into a “lean, mean, hunting machine”, are the words of someone who is not quite telling us what is really going on. Only time will tell.
What do you think? Talk Back and Let Me Know.
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Talkback
Lost in a sea of options
RIM would get drowned out from the launch of iPhone 5, Windows 8 and whatever Android device at the moment the carriers want to push.
It's not like there is a endless supply of consumers that rush to the store to get a smartphone. Smartphone sales are mostly tied to 2yr contract windows. How many are due to upgrade between Sept - Dec is the question. You also have to factor if their a current Blackberry users do they want to switch to another platform. Trending of older model Blackberry users shows yes they did as lets face it OS 5.0 devices were OLD to begin with. But someone on a newer device may wait another month or two and see what RIM has cooked up. If the launch is really Jan we should have a clear picture of the features of BB10 later this year.
The corporate question is much larger issue and one that will not be decided in the next few months. We still have over 5000 Blackberry devices that have contract dates into 2014 now. We're also not likely rushing to buy BB10 right off the bat. Corporate fleet sales just upgrade enmass due to a new model. That's Apple's thing and consumer based. The corporatre procurement lifecycle is much different.
Answered your own question?
BB10 in 2013?
The problem right now for RIM is that they need cash to get the phone out. The longer they take, the more expensive and the less likely that the new phone will make it out at all.
Gery Menegaz
agreed
No panic yet
Not exactly...
My carrier doesn't restrict upgrading your handset to only at time of contract renewal, your eligible for a handset upgrade after a specific period of time with the original handset.
By that reasoning if someone wants to stick with RIM they can renew their contract and a couple months later upgrade to the newest RIM handset when it becomes available.
The only concern is new purchasers, purchasers changing carriers who need a new handset or someone making an out of sequence upgrade. If the new RIM product isn't available one thing for sure, they are not going to be buying one.
Risky premse
Always looking at US belly...
At least for what concerns mobile, the US are the exact opposite. In Europe and Asia networks developed to GSM when you were still using ETACS, there are billions of users scattered around the world while you are only 300 millions (including newborns and retired).
The fact that in US contracts have a long duration etc... in the rest of world carriers don't rule the market, that is your (terrible) exlusive. In the rest of the world you buy the phone you eant in a shop and if you miss the christmas event, you are screwed.....
Nero fiddled while RIM burned.
Android was aggressive and innovative but RIM just rested on its Laurels and waited for the rest of the world to catch-up. Along came ActiveSync and suddenly there was a robust Microsoft alternative to BES and Microsoft invited everyone to come along.
Dependent upon revenue from BES licenses, RIM stayed put. Little innovation. Poor execution. Too many models on too few carriers. Delay after delay on BB10. When I bought my last (and I think I really mean MY LAST) BlackBerry, my Verizon store had to get the device out of the back - because none were out on the showroom floor. Staff were pushing Android and iPhone hard but would barely talk about the BlackBerry anymore.
The RIM PlayBook required a paired BlackBerry smartphone to provide e-mail. Prices were as high as the iPad - despite the smaller form-factor. Still no BB10.
RIM is truly on it's last legs and no amount of talk is going to keep BlackBerry customers from jumping ship as soon as their favorite, long-anticipated 4G smartphone comes out.
The BB10 has been promised and delayed so many time that I cannot imagine that very many RIM customers will hold out much hope that BB10 will ship soon enough for them.
I am hoping I can wait for Windows Phone 8. If not, it'll probably be Android. My wife is eyeing the iPhone when her BlackBerry Contract runs out. RIM is not the first company who has fallen by the wayside (to be eaten by the birds) and they won't be the last. Too bad for RIM. It's the price of arrogance.
Rim recent announcements
Reality Check
Agree to disagree....
RIM caught in a tough marketing position.
The problem RIM had was that they got popular and became famous for qwerty keyboard smartphones. I know many many RIM product users who to this day shy away from touch screen phones because they really enjoy the qwerty user experience and when they try out a touch phone it just doesn't feel right they say. I love touch myself.
RIM was very aware of this and had developed a number of models based on the qwerty keyboard. Now, admittedly, a company like RIM who built numerous models, the obvious answer seemed to be to make a touch screen model. But as it obviously seems to turn out, you have to put a ton of work and effort into a completely new touch screen device to make it a popular user friendly device. RIM just didn't do that. They made an effort, but obviously not a solid enough effort. Apple had a brilliant plan working the way they did. Make one hardware set and it becomes millions of different hardware sets because everyone buys their own apps and everyone has a unique device.
RIM is a solid company that had the resources and wherewithal to do the work required, but its my suspicion that it was just to damn hard to predict just how much of a paradigm shift RIM really needed to make way back when it would have been the most help. And the paradigm shift that was likely needed was for RIM to rapidly begin shifting away from qwerty design to touch design, but they didn't do it. It was likely what they really needed to do so the necessary amount of attention, and dollars was put into touch screen development so they could get it right. And I would think one can see that given the popularity their qwerty designs , at the time, and even somewhat so today, this would have taken a real leap of faith. Huge leap of faith that it was the right thing to do.
RIM still faces the problem that while its become apparent that the majority of the world has seen the fantastic utility of "endless user interface" that touch screen provides, many still want that qwerty physical keyboard that RIM is famous for. Its obvious that once the qwerty keyboard is gone, many will weigh their options on what touch screen device they are now forced to buy will be. And its quite likely many will not stay with RIM. It really means RIM has absolutly got to steal some costomers of other brands when their OS10 device comes out.
Its a horrible maket position to find one self in and makeing the right decisions on how to proceed when an absolute game changer like the iPhone comes along is hard to make. We can certainly see the results when the decisions that are made do not turn out well.
Missed the Touchscreen Memo
Thanks for your comment.
Gery Menegaz
Why does Apple never get shellacked
Waiting for Uncle Steve
BYOD is RIM's sweet spot
Not neccessarily
Both myself and my wife have BB 9650s as well as a Playbook. Happy with all but the phones are getting OLD. I've told corporate that I'll keep the BB as long as possible since I have no desire to join the Apple infrastructure.
Why can't RIM find a CEO with at least half a brain? By his logic if I wanted to open a store and didn't want the competition instead of a popular mall I would place it on a deserted road. Idiocy!
How long have they been working on OS 10? The Playbook already uses qnx so I just don't understand. There is a fine line between making it perfect and taking way too long.
I'll probably get a WP instead.
fyi
Global Recession
There is seldom only one "winner". There is room for 3-5 players or more in the mobile space and just because one is at the top, doesn't mean the others fail.
At the top are...
Thanks for the comment.
Gery Menegaz