A poor financial performance in first fiscal quarter seems to be ringing alarm bells for the Blackberry maker, RIM. The first quarter financial results have opened a can of worms for the company. Instead of covering up things, it’s the time to come clean about serious issues. Exposing their own flaws will certainly cause many problems but hiding them will cause even more damage. Choice is up to RIM’s new CEO and President, Thorsten Heins. Though he deserves applause for not mincing his words, but he undoubtedly needs to keep his focus intact irrespective of what his critics say.
After the poor fiscal quarter performance, here comes one more setback for this Waterloo- ased company. RIM stocks slump to a 9-year low on Friday, signaling that problems have now come to head. To make matters worse, services broken up on three continents over the weekend.
While acknowledging services issue, RIM confessed in its statement that interruption in services have caused inconvenience to its customers who are located at certain locations of Europe, Africa and the Middle East. However, services have been resumed but there could still remain some small issues related to browsing and Blackberry messenger. Blackberry fans were restlessly waiting for new Blackberry 10 smartphones, but after the announcement that RIM is delaying BB 10 release and now will roll out BB 10 smartphones by first quarter of 2013, RIM’s stock witnessed a 9 year low. Even the decision of laying off 5000 employees is giving a tough time to RIM.
Even if RIM is in dire straits, Heins still sees light at the end of the tunnel since RIM is about to release BB 10 smartphones that are far better than earlier models. RIM has also assured app developers that any BB 10 app is capable of generating $10,000 in the first year itself and if that doesn’t happen, RIM will compensate for the remaining difference. When it comes to investing in marketing programs to develop upcoming BB 10 in the best possible manner, RIM is making sure that all requirements of BB 10 are met on proper time and in proper way.
After Heins published his opinion editorial, it was Rick Costanzo (RIM’s brand new Executive VP of Global Sales and Regional Marketing) who recently gave an interview to media. He said that he is sure BB 10 will return with a bang in 2013 and it will make up for everything.
He revealed that the decisions being taken by RIM may displease a lot of people but tough decision making is truly the need of the hour. By focusing on commitment, hard work, and dedication, enthusiasm among RIM’s employees would be unbeatable. He also reveled excitedly that RIM is getting along with developer community like never before and this thing is surely going to benefit the company in the long run.
Heins has a cross to bear and he is juggling frogs, but at the end of the day even we know that problems don’t last for long time; it is a person’s intelligence and persistent efforts that are capable of dealing with any difficult problem.