RIM’s Shipments Drop: Company to Stop Financial Forecasts

by Holly Shoemaker

Photo Courtesy of iStock

Last week I discussed how Research in Motion (RIM) released a BlackBerry 10 prototype to developers and a job announcement looking for a developer with Apple experience. Perhaps the timing came as the company knew it would post a net loss the following week. For the first time since the holiday quarter of 2006, RIM’s BlackBerry shipments dropped by 21 percent.

Latest Developments

RIM’s CEO, Thorsten Heins, now admits he made a mistake in January when he said the company did not need a drastic makeover. The company says it plans to focus on “targeted consumer segments,” and RIM is looking into the possibility of licensing its software and network to other providers. The company also said it will consider selling the company. What we do know is the latest loss in profits has left some executives without jobs.

Concluding Thoughts

Many analysts conclude the company continues to misread the market. I agree with that analysis. While many companies provide vague information regarding financial forecasts, RIM’s announcement that it will stop providing forecasts shows the company has no idea what direction to take. The company also lacks credibility until it releases the BlackBerry 10, which no one can say with any certainty will release around its predicted timeframe. While Hein's optimistic attitude helped drive stock shares up by almost eight percent today, RIM will need to do better than a prototype.