Thursday, April 5, 2012

Stick a Fork in RIM: They're Done

RIM has been in trouble for a while now, but it looks like the end is near.  RIM's market share continues to erode, its platform for the future (Blackberry 10) has yet to be released, and now it is losing money.  In Q4 2011, RIM's revenue dropped 25% year-on-year and recorded a net loss of $125 million.  Even if they can salvage a fraction of the smartphone market (an unlikely proposition, considering their epic failures with the Storm and Playbook), they are woefully behind in both hardware and mobile OS marketshare.  Apple and Samsung now account for 95% of mobile phone hardware profits (see stats), while Android and Apple account for 80% (and rising) of the smartphone OS marketshare (see stats).  A turnaround for RIM is not impossible, but neither is it realistic.  Now that they are hemorrhaging cash, the end seems inevitable.

Read the article.

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