RIM CEO: Company is not in a "death spiral"

Research in Motion CEO Thorsten Heins is trying to keep the Blackberry phone maker from going under, but he insists that RIM is not on its way to a complete shutdown. In a new interview this week with CBC Radio, Heins is quoted as saying:

This company is not ignoring the world out there, nor is it in a death spiral. Yes, it is very, very challenged at the moment – specifically in the U.S. market. The way I would describe it: we’re in the middle of a transition.

According to The Globe and Mail, Heins added in the interview that he is confident that RIM will emerge from what he calls this "transition" period successfully. He also said that sales of Blackberry smartphones are still strong in other parts of the world and that the launch of the Blackberry 10 operating system and their corresponding phones will be more than just a simple product launch for RIM.

Last week, the company announced it would delay the launch of Blackberry 10 from the end of 2012 to the first quarter of 2013. It also announced it would lay off 5,000 of its workers, which is about 30 percent of its total workforce.

Source: Globe and Mail

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25 Comments

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How soon we all forget.. "Aug. 6, 1997: Apple Rescued
Don't assume and never say never .. RIM could pull though this with flying colours.

Apple-a-Day said,
How soon we all forget.. "Aug. 6, 1997: Apple Rescued
Don't assume and never say never .. RIM could pull though this with flying colours.

But who's doing the rescuing ?

Instead of fighting for the best "RIM is dead" why don't you look at the facts and base your own judgement on it.
RIM is not dying: no debts, 2 billion in banks and generated 710 million in operating cash flow for the first quarter.
650 carriers selling BB, 78 million subscribers in 175 countries, and it's still growing.
Maybe RIM is not that successful in USA right now, but America is not everything, they got the lead in other countries.

Again RIM is not dying, and will not. They have enough time to release BB10 and I believe it will be a success.
BlackBerry 10 will be awesome you're just not ready for it.
Brace yourselves for the ultimate device!

Titoeuf said,
.....

They're losing marketshare and mindshare up here in Canada too. I work in telecommunications, and before my company offered iPhones, all managers had BB.

Now, we scoff at those who still have to use Blackberry devices while the senior executives have fallen in with the iSheep.

When they can't even hold their telecom partners interests, something needs to change, and delaying this amazing BB10 another quarter isn't quite the change needed.

While they are able to stay afloat until BB10 launches, I'm sure the consumer market will have forgotten them by then.

deadonthefloor said,

They're losing marketshare and mindshare up here in Canada too. I work in telecommunications, and before my company offered iPhones, all managers had BB.

Now, we scoff at those who still have to use Blackberry devices while the senior executives have fallen in with the iSheep.

I like it, you bring examples, not just throwing random unbased fact!
I recognize that BlackBerry devices are getting less and less poppular for most of costumers and lots of companies but: "[...] RIM's reliability and security make it the first choice for countless government agencies and are part of the reason more than 90 per cent of Fortune 500 companies deploy BlackBerry in their enterprises." - Thorsten Hein
That is still an important thing. BlackBerry devices are still at the top for security and big enterprises/governments knows this.

deadonthefloor said,

When they can't even hold their telecom partners interests, something needs to change, and delaying this amazing BB10 another quarter isn't quite the change needed.

I know the delaying ain't something that seems to help them, but I think it is actually. They made a mistake with the Playbook by releasing it too early, with a reported release and the OS 2.0 on board it would have been a mch higher success.
That's what they're trying to do here : Building a flawless software. By releasing an half finished software, you could call them dead for sure cause they can't afford this mistake. (Yeah I recognize RIM's death if BB10 is not a success)

deadonthefloor said,

While they are able to stay afloat until BB10 launches, I'm sure the consumer market will have forgotten them by then.

I don't think they'll be forgotten by then. Just look at how much the media are covering RIM's progress with BlackBerry 10. And I'm not just talking about the tech media, I saw an article about RIM Q1 in my local newspaper!
I follow 4-5 geek news sites and they all talk about BlackBerry 10.

Q1 2013 : RIMpire strikes back!

I don't really think he understands

If you are a CEO and you have to actually make a statement that your company is not in a death spiral then I'm afraid your company is in a Death Spiral.

As Stephen Colbert might say, "Some people say changing RIM around is like rearranging the deck chairs on the Titanic. That's not true; RIM isn't sinking. In fact, RIM is soaring; if anything, it's like rearranging the deck chairs on the Hindenburg."

Whether or not they are in a death spiral, the current era of RIM certainly is. BB10 might save them, but it'll be like starting from scratch when they launch.

When you fail to communicate your vision to your investors then what can the only thing the investors assume? that there is no leadership?

Communication, communication, communication, communication!

The only chance they have is to convince investors to stop selling the stock like hot cakes.
If they can't stop it, then the money will dry up and bankruptcy will be the only door left.

Max Norris said,
After reading this the "Bring Out Your Dead" scene from Monty Python and the Holy Grail just came to mind.

Very apt

JAB Creations said,
Competition is good, comments posted three minutes after an article rarely so.

Competition being good or not has little to do with the company being in a death spiral or not. It's a fact that RIM is hemorrhaging money which is turning out to be a serious problem for them.