Tuesday 20 September 2011

Is It the End for RIM?


by on Sep 19, 2011

Transcript:

BY: JESSICA SMITH


Sales for BlackBerry maker, Research in Motion---have come to a screeching halt. FOX Business reports.

"RIM plunging 19 percent after the company's miserable quarterly report after the bell yesterday, with BlackBerry sales falling for the first time in a decade."

RIM's announced Q3 earnings, sales and revenue are so bad-- investors now wonder : Is this the end for BlackBerries? After the three straight losing quarters and 50% profit drop this year--an analyst tells the New York Times:

"We question the company's long-term viability. The clock is ticking."

Analysts are losing faith in the company, but what about RIM execs? CNBC's Jim Cramer thinks they might see it differently.

"I have here in my hand, a genuine fantasy island script, it happens to be the Research in Motion conference call, but it is fantasy land. To listen to these guys, it's like all systems are go go go, that they can't make enough product and this is their time."

Bloomberg Businessweek says RIM's founders haven't taken the right approach.

"These guys have misexecuted, they have been very late with the new products. They've missed their own forecasts. They've done nothing to reassure Wall Street that they're going to get more competitive against Apple and Google's Android products."

Q3 cost RIM's CEO Jim Balsillie his billionaire status--his value dropped from almost $2 billion to $640 million. He believes his fortunes will turn when holiday shopping rolls around and the Blackberry 7 hits the market. Still, he's got Jim Cramer to convince.

"This is a document that is the obituary for Research in Motion."


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