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