New York, NY (PRWEB) July 11, 2012
Research In Motion Limited (RIM) continues to disappoint investors with its latest quarter earnings, and there is now a possibility of the firm being forced into bankruptcy if it doesn’t turn things around, according to Sasha Cekerevac, contributor to Profit Confidential.
In the article “Bankruptcy Now a Possibility for RIM,” Cekerevac says that the latest quarterly earnings report disaster is a sign that management has no idea of how to run their company properly.
“Even worse than the latest quarter’s sales numbers is news that Research In Motion is delaying the launch of its new ‘BlackBerry’ phones once again,” says Cekerevac. “The new operating system and BlackBerry phones won’t be on the market until the first quarter of 2013, a huge delay.”
Cekerevac believes RIM has been out of touch with what the market wants for the past few years and it shows.
“Yes, RIM is trying to cut costs by laying off 5,000 people, but management should have realized they were far behind other technology stocks a long time ago and adjusted their cost base then,” argues Cekerevac.
Cekerevac notes that RIM’s shipment of phones for the quarter was only 7.8 million, as compared to 13.2 million BlackBerrys shipped during last year’s quarter, a drop of 40%.
“Technology stocks can’t continue to exist at that pace of decline,” says Cekerevac.
Some analysts are now stating that RIM might last 18–24 months before going under, but Cekerevac thinks it might be sooner: “Two reasons: the cost of laying off employees is going to be high,” says Cekerevac, “and the delay in introducing the new phones means more people are going to migrate to other products.”
Cekerevac notes that once a customer leaves, it’s very difficult to get them back.
“Especially with far better products on the market, RIM is just not able to compete,” Cekerevac concludes.
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