rim 5 RIM betting it all on BlackBerry 10

In Hein’s closing statement of his letter to investors he essentially told investors that RIM’s future depends on the BlackBerry platform.  RIM’s new strategies might be pouring most of its remaining assets into developing the BlackBerry platform to stay competitive with iOS and Android, or start licensing their products and/or services.

Research In Motion is on the verge of being bought out by another company.  In a recent letter to investors, RIM’s CEO Thorsten Heins confirmed that RIM had contacted J.P. Morgan and RBC Capital Markets to review RIM’s financial stability and goals. 

blackberry 10 smartphone RIM betting it all on BlackBerry 10

In Hein’s closing statement of his letter to investors he essentially told investors that RIM’s future depends on the BlackBerry platform.  RIM’s new strategies might be pouring most of its remaining assets into developing the BlackBerry platform to stay competitive with iOS and Android, or start licensing their products and/or services.

“To further enhance our commitment to successfully completing our transformation, after the release of our year-end financial results, we engaged J.P. Morgan Securities LLC and RBC Capital Markets to assist the Company and our Board of Directors in reviewing RIM’s business and financial performance.  These advisors have been tasked to help us with the strategic review we referenced on our year-end financial results conference call and to evaluate the relative merits and feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives."

google is closing the gap on apples app store RIM betting it all on BlackBerry 10

Ten years ago, almost every business professionals owned a BlackBerry, but now RIM has only approximately 78 million users worldwide.  Adding to the painful decline in users, the BlackBerry platform has only about 80,000 apps to back it up.  Whereas, Android has about 250,000 apps and iOS has over 350,000 apps

Scaling down and getting rid of “baggage” may help RIM’s cause.  Blackberry 10 will have to be RIM’s saving grace, so it is understandable that Hein is calling for a spending and headcount reductions.  RIM has removed various executives, and average jobs may also be sacrificed to the sake of BlackBerry 10’s development. 

“We will also continue to review RIM's organizational structure and clearly define accountabilities for all key businesses and business processes with a goal of eliminating fragmentation, duplication and inefficiencies.  While there will be significant spending reductions and headcount reductions in some areas throughout the remainder of the fiscal year, we will continue to spend and hire in key areas such as those associated with the launch of BlackBerry 10, and those tied to the growth of our application developer community."

RIM certainly hasn’t tossed in the towel just yet, but if it continues to hemorrhage money then the BlackBerry brand is going to be a goner.

Source: readwriteweb.com