There’s really no easy to way to say this to BlackBerry fans, but RIM is going down the drain. Last night we reported that RIM announced, via a conference call, that they would not be shipping any BlackBerry OS 10 devices until late 2012 at best. This is due to a critical chipset that the company needs for performance and battery longevity.
Due to this news, the investor community has responded negatively, with RIM’s shares dropping to its lowest point in 8 years. The stock price fell another 13%, to $13.12, it didn’t recover much at all in after hours, opening down 12% at $13.39 this morning at 9:38 am. This is all on top of the company dropping over 74% this year, before yesterday’s announcement.
Two analysts, Tim Long of BMO Capital Markets and James Cordwell of Atlantic Equities, have both cut their rating on RIM’s stock, which will likely further effect its value.
With no new BB OS until late next year and BlackBerry 7 already dropping off to the point where many consumers just don’t care, what is going to keep the company a float until it unveils BlackBerry OS 10? Between now and when BB OS 10 does launch, consumers will have three major options. When next year starts we’ll start to see devices from Motorola, Samsung, HTC and LG with Google’s new Android OS, Ice Cream Sandwich, which completely changes the Android game. Microsoft is finally picking up steam with Windows Phone 7 with the help from Nokia, while it may not be as popular as iOS and Android, it’s moving past RIM’s BlackBerry slowly but surely. As for Apple, if rumors are true, we are going to see a new redesigned iPhone with a larger screen and possibly a major overhaul to iOS. All of these factors are going to continue to hurt RIM before it can re-launch itself with a new and improved OS.
Keep in mind, we are also assuming that RIM’s BlackBerry OS 10 will be a success. What if it’s not? What if it’s as broken as the QNX OS on the Playbook? It could be plagued with problems, errors, failures, half-assed security, missing promised features, basically it could end up being a complete flop… then what? Where does RIM go from there?
It looks like the ship has sailed for the next generation of devices and OS’s, sadly RIM is left at the dock with their suitcase and dolly.
Wave goodbye RIM, wave goodbye.