Date Published: 
06/01/2012

Citing its competitive environment, RIM’s CEO Thorstein Heins said he expects Q1 ‎results that will likely result in an operating loss for the year.

The company says it is working hard on the business market, and its global customer ‎base, including countries where it remains strong.

It has also hired bankers JP Morgan and RBC Dominion Securities to help it assess its ‎strategic options. Often this is code for looking for a buyer.  That seems possible this ‎week as Facebook announced it is interested in building a mobile platform of its ‎own.

RIM nevertheless has over $2B in the bank, expects that to grow, and has received ‎promising reviews at the launch of its BB10 product at a key developers summit ‎recently.


Risk Management Perspective: 

RIM remains a textbook example of how hard it is to recover from a sustained ‎strategic stumble.

 

Industry Group: 
Large Enterprises
Industry: 
Telecommunications
Country: 
Canada
Risk Class: 
Strategic
Risk Type: 
Business Strategy (Model)
Risk Type: 
Competition
Risk Type: 
Revenue Drop

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