Chief Executive Thornsten Heins said at a meeting with shareholders that the next several quarters will be challenging as RIM will license its operating system to competitors as it works to build out its subscriber base.
Following the 14 percent drop of its stock after the announcement that the company will delay the launch of its newest BlackBerry 10, a complete redesign of RIM’s BlackBerry operating system, to early 2013 from the late 2012, shareholders called an annual meeting Tuesday with Research in Motion executives due to the launch delay and lay off 5,000 of its workers. The share dropped to $7.34 by the time the meeting concluded Tuesday from the opening $7.82
Heins, as shareholders-reelected CEO with co-founder Mike Lazaridis, faced some hard questions such as whether he truly had the leadership chops to run the company and if he could justify his compensation package.
A shareholder at the meeting pointed out that Heins had not previously been a chief executive of a company RIM’s size. Heins countered that he has led several billion-dollar divisions within Siemens.
The sign of the collapsing RIM had been reported many times months ago, in contrast to Google Android and Apple iPhone. The sales were down a stunning 43% on the previous quarter — a loss per share of 28 cents. The workers lay off is the price of saving billion dollars to get itself back on the track. RIM wouldn’t bear many more quarters without being marginalized severely in the smartphone market.
“Apple has been ready with countless iPhone updates, both to its operating system (now up to iOS 5) and its phone (the current iPhone 4S is Apple’s fifth model), often before there’s any demand from the public for something new, making its own devices and software obsolete before the competition gets a chance to do so. Meanwhile, RIM seems to still be stuck in 2007. And its efforts to come into the present have been laughable” – WallSt Cheat Sheet.
Since the first launch of Apple's iPhone and Google's Android few years ago, problems at Research in Motion with their Blackberry products have widely been known and discussed.