RIM to ditch consumer market and focus on businesses after another dismal quarter

RIM to ditch consumer market and focus on businesses after another dismal quarterBlackBerry maker RIM has delivered fourth quarter financial results every bit as bad as predicted, with the once-dominant business phone brand racking up $125m losses over the period and missing analyst projections for the fifth quarter in a row.

As a result, RIM has decided to cut its losses and focus purely on its bedrock of business users going forward, while former co-CEO Jim Balsillie has resigned from the firm's board of directors.

Recently appointed RIM boss Thorsten Heins, who took over when Balsillie and fellow former CEO Mike Lazaridis stepped down at the end of January, now has the unenviable task of figuring out how to turn the company's fortunes around after the worst quarter in its history.

It had all started so well. Just five or six years ago, RIM decided that BlackBerry was no longer the sole preserve of businesses - introducing consumer-friendly features such as cameras introducing 3G on its phones for the first time.

However, with iOS and Android having muscled in on its business phone market, and RIM unable to go toe-to-toe with its OS rivals in the consumer space, things quickly started to turn sour.

Heins now says RIM will ditch its consumer-focused approach and retreat back to its original base of providing services to business and enterprise. Several high-profile staff cuts have already been made, with more likely to follow, and RIM says it will no longer be issuing quarterly projections.

So what next for RIM? Rumours abound - but right now, the outlook isn't looking too rosy at all.

UPDATE: RIM has since contacted us directly to say that it's not abandoning the consumer market after all, but is simply looking to build on its traditional areas of strength.

Read more about: Blackberry OS

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9 comments

JanSt / MOD  Mar. 30, 2012 at 09:18

That IS what they should have done all along.
Now they created this weird ... Oh, really, coffee won't help this post. I give up. Well done, RIM

jmarcelino  Mar. 30, 2012 at 10:23

Cheer up RIM, you still have a nice patent trove. I think it's a bit late to start focusing on businesses though.

http://s2.alt1040.com/files/2009/08/blackberry-girls.jpg

JanSt / MOD  Mar. 30, 2012 at 10:29

Cheer up RIM, you still have a nice patent trove. I think it's a bit late to start focusing on businesses though.

http://s2.alt1040.com/files/2009/08/blackberry-girls.jpg

Hey, you went to photo-school with Lewis Curdie? :p

http://fiestafarms.ca/wp-content/uploads/2010/07/Pamela-Anderson-and-Royal-Mounties2.jpg

jmarcelino  Mar. 30, 2012 at 10:58

Oh Jan, you cockblocker, you've ruined the whole page with that..

Anyway I found RIM's new business "service" strategy:

http://www-bgr-com.vimg.net/wp-content/uploads/borat-bis.jpg

There might be a chance after all.

JanSt / MOD  Mar. 30, 2012 at 11:31

hey, it's a Canadian company :p

And do I want to know what a 'cockblocker' is?

Pondlife  Mar. 30, 2012 at 11:47

Well Huawei getting closer to prediction. Quite a rapid collapse really

Anarchist  Mar. 30, 2012 at 12:40

They will never be able to survive in the business sector.

Not since exchange/activesync is now so widely available and deployed. Six years ago the only other thing that would really connect to business email systems was pretty much the awful winmo with activesync.

These days, we have iPhones, Winmo7, droids, infact pretty much everything.

We don't need blackberrys anymore. Especially when its so much more hassle arsing about with BES/BIS/Whatever setups and subscriptions, and almost all businesses are running Exchange anyway.

JanSt / MOD  Mar. 30, 2012 at 12:45

Yep, they shouldn't have dabble in the entertainment industry. They dropped the ball, and instead of picking it up again, they joined the other team and travelled to another ballpark alltogether...

At this point I'd even give Nokia/WP better odds...

matt101101 / MOD  Mar. 30, 2012 at 12:45

hey, it's a Canadian company :p

And do I want to know what a 'cockblocker' is?

In case you feel like finding out ;):
http://www.urbandictionary.com/define.php?term=cockblocker

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