Blackberry Maker RIM Buckles Up Despite $125M Loss

Blackberry-maker Research in Motion (RIM) has said it plans to refocus its business back onto corporate customers.

The Canadian company made a net loss for the three months to 3 March of $125m (£78m), compared with a profit of $934m a year earlier. It has lost ground as its traditional corporate customers have switched staff to iPhones or Android smartphones. RIM also announced the resignation of former co-chief executive Jim Balsillie. Chief technology officer David Yacht will also be standing down.

For the full financial year, the RIM made a net profit of $1.2bn, down from $3.4bn in the previous year. The results were worse than analysts had expected and shares in the company fell as much as 9% in after-hours trading in New York. They have fallen by 80% over the past year. RIM has struggled to keep up with rivals in the smartphone market, such as Apple’s iPhone and handsets running on Google’s Android operating system. It has also struggled to gain a foothold in the tablet market.

Newly-appointed chief executive Thorsten Heins said the company would now focus on its traditional core market of corporate customers rather than on individual consumers as part of a strategy to turn the business around: “We believe that Blackberry cannot succeed if we tried to be everybody’s darling and all things to all people. Therefore, we plan to build on our strength.”

Analysts said the company could continue to struggle until it became clear whether this turnaround plan would succeed.

Source: BBC News

Image: Pocket-lint

RIM: If You Can’t Beat iPhone and Android, Join Them

BlackBerry maker Research in Motion will soon support iPhones and Android devices. Yes, that’s right. The company is about to run the risk of cannibalizing its own handsets. Yes, that’s right. On Tuesday RIM announced it is launching a mobile device management tool that will allow IT departments to control and secure rival phones running on rival operating systems.

The software tools could signal a lucrative new services strategy for the struggling phone maker — if it plays its cards right. After all, RIM has years of experience developing for the enterprise and strong brand recognition among IT departments. Of course, it runs the risk of cannibalizing its own handset line in the process of successfully supporting competing devices. And there’s yet another hurdle for the company. Once the leader in all things enterprise, RIM is a little late to the “bring your own device” (BYOD) party.

The BYOD movement is growing and has led to a boom in the mobile device management industry, with multiple smaller players vying to secure the growing number of devices being brought into the workplace.

Still, RIM has the right idea. You can’t fight the BYOD movement. And if you can’t beat iPhones and Android devices, the next best thing is to try and make a little money by supporting them. That won’t solve RIM’s bigger problems — coming out with devices that consumers, not just CIOs, want to buy–but it’s a start.


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