Randy McDonald (rfmcdpei) wrote,
Randy McDonald

[BRIEF NOTE] On Research in Motion not being in a death spiral, really it's not

There's something sad about news items like this, as as Research in Motion seems to undergo the same sort of slow-motion collapse that Nortel went through this time last decade. What happened to the high-tech Canadian economy that seemed to be developed at the end of the last millennium? Is Canada doomed to be a resource-exporting economy indefinitely?

(Mind, I remain as happy with my Huawei handset as I did the day that I got it. I've certainly got no grounds to claim that I'm actually, demonstrably, committed to the survival of Research in Motion. There just hasn't been any overwhelming moral imperative for me to do so.)

Research In Motion chief executive Thorsten Heins told CBC "there's nothing wrong with the company as it exists right now" and says he is confident the company will be a "very strong player" in smartphones for years to come.

"This company is not ignoring the world out there, nor is it in a death spiral," Heins told CBC's Matt Galloway on the Metro Morning radio show on Tuesday.

Heins' appearance was part of a media blitz aimed at selling the company's turnaround story in the midst of mounting hurdles, which include layoffs of about 5,000 people, faltering sales of its BlackBerry smartphones, a delay in bringing out the new BlackBerry 10 technology and a tanking stock price.

Heins defended Canada's leading technology company as part of RIM's efforts to convince customers and investors that it can survive intense competition from Apple and other competitors.

Heins took criticism when he took the reins of the company in January for failing to acknowledge that the company needed major changes. "Now I'm six months [on the job] and I know a bit more, that's for sure," he said.

Last week, the company announced an operating loss in excess of $500 million last quarter. Heins says he expects similar challenging quarters to come until the company's BlackBerry 10 launch, now expected in the early part of 2013.

[. . .]

"We are still growing in Asia. There are still areas where we are No. 1," he said. "We are in the middle of a transition. We know what we are doing."

[. . .]

The new BlackBerry 10 operating system and phones have widely been considered a last-ditch effort to save the company, which has lost significant market share to the iPhone and Android phones.
Tags: canada, economics, social networking, telecommunications
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