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Possible RIM exodus with BlackBerry phones & PlayBook stockpiles

We like to keep readers informed about RIM and its BlackBerry devices but it has become more and more evident that the company is facing dire straits and needs something to turn its fortunes around. Today we have news of a possible RIM exodus though, as BlackBerry phones and PlayBooks stockpile.

RIM is pinning hopes of future success on the release of the BlackBerry 10 OS but we recently brought news of the company having to reduce its workforce so things are not looking good. News now of stockpiles is discouraging, as it seems that these stockpiles have grown by two-thirds over the past year as sales have slumped. This has triggered chances that RIM will see its third writedown since November.

A report on Bloomberg has compiled data showing that RIM in-house supplies value has risen by 18% in the last quarter. Considering this doesn’t even include devices kept at carriers and retailers, RIM should be extremely concerned especially comparing its situation with Apple whose inventory has fallen by 11% over the last quarter. As if RIM doesn’t have enough problems it has been made worse by the likelihood of an exodus of current customers as the popularity of Apple’s iPhone and also Android smartphones grows.

Oddly the fact that we all know the new Blackberry 10 OS and devices using it are coming works to RIM’s disadvantage, as customers are even more reluctant to purchase a current BlackBerry phone. This has led analyst Neeraj Monga of Veritas Investment Research to say that it’s likely that RIM will account for the declining value of the stockpiles by recording another quarterly expense in June. Meanwhile a spokeswoman for RIM declined to comment.

Things are not looking promising then for RIM as its market share continues to drop. Research firm IDC reports that while Apple iOS devices account for 23% of the global smartphone share and Android devices 59% of the same, BlackBerry’s share fell to only 6.4% in the last quarter. RIM appears to be putting everything into the BlackBerry 10 OS basket but whether this will be too little too late is in question.

We’d like to hear your comments on this. What are your thoughts on the current dilemma that RIM faces? Do you think the upcoming OS and associated devices can be enough to turn around its problems

Comments

2 thoughts on “Possible RIM exodus with BlackBerry phones & PlayBook stockpiles”

  1. Reply
    Waqar Sahi says:

    I have used blackberry devices since 2007 and for a brief period of one year did move to android, but i find android massively fragmented in terms of its os version coming out every six months or so. The devices are varied in terms of hardware and after a while it became too frustating keeping up with both software and hardware. Never personally liked iphone because of its reliance on everything apple, and switched back to blackberry.

    I must admit its not at par with the others but with the BB10 showcase i do feel that RIM will capture the lost market, the majority consumer these days are not that hardcore and with a better product can be swayed either way.  BB10 does promises to hit the nail in the head, considering it launches a bug free tried and tested device and back it up with the best apps at launch. Go on RIM, You can DO it!!

  2. Reply
    Dr Glen Marshall says:

    The Storm was rubbish the Torch 9800 does all I want and well. So when choosing a tablet I go for the Playbook only to find a 3G version is about to be issued, so I hold on to my cash. Now the 3G is well overdue, nothing happening. So I will buy something else; another lost sale for RIM. Next mobile I will want as compatible, viz the same brand so another loss for RIM.
    As stated above they fall on their own sword with stocks growing and no one willing to buy a product with BB10 in the wings. What is the matter with the idiots who run RIM, can’t they see how foolish they are? They just don’t learn by their mistakes. A lost sale, especially in the face of healthy competition is not easily won back, and now probably not in time to save RIM.If the “management” can treat customers better than to keep us in the dark when release dates are not complied with, then they don’t deserve a company from which to take a salary, and soon this will be so.

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