Ballsillie resigns from RIM

[Mean Mr. Mustard]

Originally Posted by SHOGUN

I feel such an idiot for buying a 9700 2 years ago.... I want an Android phone.

So a phone that is almost three years old is feeling outdated? I think that has more to do with the fact that the phone is just getting old is likely your problem more than the Blackberry itself. If you had one of the first gen android phones I am sure you would want a new one!

That being said I do think that BB needs to up their innovation a great deal.

[I-Hate-Hulse]

Originally Posted by Mean Mr. Mustard

So a phone that is almost three years old is feeling outdated? I think that has more to do with the fact that the phone is just getting old is likely your problem more than the Blackberry itself. If you had one of the first gen android phones I am sure you would want a new one!

No... 3 years is an eternity nowadays for phones. I got an iPhone 4 about 14 months ago and iOS feels like something made by Fischer-Price when I compare it to an Android 4.0 device (GNex). Can't imagine using this for 3 years.

Having a phone for 2 years is a stretch... 3 is an eternity (YMMV)

[bluejays]

Originally Posted by MrMastodonFarm

Not that I believe they do, but how do you know that?

Everything related to RIM's products are leaked well in advanced by corrupt upper management. Pretty much anything they work on is already outed with pictures, on blogs.

[bluejays]

Personally, I think hiring internally, almost no matter how good the candidate is, sends a negative vibe to many investors. RIM's problems have been their innovation and internal corporate culture where it's alright to mislead consumers and investors about release dates, problems etc. Bringing in a guy internally shows it's the old boys club running RIM.

Regardless, I'm sure the stock will raise by a dollar at some point tomorrow (always goes up on any hopeful news), but by weeks end will probably be where we are tonight. Anyone wanna take their own guess what RIM.TO will open at tomorrow?

My guess: $17.90

[macker]

For what it is worth one of Jim Cramers cardinal rules is to sell any company where the CEO or CFO leaves suddenly.....In RIMS case they are going down the same path as Nokia and their US market share continues to drop each and every time it is reported on. If you looked at what happened to Nokia in the States they used to have a 40% market share and A/A have taken them down to close to zilch. I have more confidence in Nokia going forward as they were smart enough to team up with Microsoft for the new windows phone which could be a hit......although Microsoft on their own have always made phones that are well reviewed but dont' sell. RIM needs a similar strategic partnership or they will continue to circle the drain. Not as bad as Palm used to be but things happening to this company are eerily similar. I think in Canada we don't see how bad things have gotten for RIM as it would be like how Nokia is perceived in Finland but they are bleeding pretty badly and don't really have any clear direction currently. There are huge opportunities out there as is Verizon and AT&T going to want to continue to fork out $600 - $700 for Apple phones or are they looking for something like what Microsoft and Nokia are going to bring to the market which will be new and serviceable and just what the market is asking for. If you look J.D.Power results RIM phones aren't really delivering on customer satisfaction with a score of 762 behind Apples, Motorolla, Samsung etc etc. but surprisingly they score better than Nokia, but make no mistake, RIM needs help in the same way that Nokia does....

[photon]

I know someone who used to work for RIM, I've worked with him on a few projects where we got the BB to really dance with UI stuff that they never intended.

His comment was basically the same, he'd gone to his bosses many times with ways to improve an innovate and was basically crushed by the company.. corporate culture is right.

[macker]

Some people don't even consider Microsoft as one of the big 4 :

In an interview with Forbes magazine, Eric Schmidt, Google Executive Chairman, said that there is, indeed, the ‘Big Four’ in the world of Technology too. According to Forbes’ Erik Allen, “He saidfour big companies dominate the Internet: Google,Apple, Facebook, andAmazon. Google has all the world’s information; Apple is the king of elegant design; Facebook is where your social life is; Amazon is where you buy everything. Between them the four are worth about a half a trillion dollars.”

Will be interesting to see how Google deals with all the anti-trust issues that Microsoft had to go through years ago. I would think Microsoft is still in this conversation but their operating on an out dated platform compared to the other 4 and still rely on dinosaur way of upgrading things etc. although moving to keep up with Office now on cloud etc.

Not convinced RIM can continue to fight to be a legitimate player in the tech world on their own. Some of the issues were left too long and the market doesn't really trust them anymore.

[Handsome B. Wonderful]

Originally Posted by macker

Some people don't even consider Microsoft as one of the big 4 :

In an interview with Forbes magazine, Eric Schmidt, Google Executive Chairman, said that there is, indeed, the ‘Big Four’ in the world of Technology too. According to Forbes’ Erik Allen, “He said four big companies dominate the Internet: Google,Apple, Facebook, and Amazon. Google has all the world’s information; Apple is the king of elegant design; Facebook is where your social life is; Amazon is where you buy everything. Between them the four are worth about a half a trillion dollars.”

Apple dominates the internet with elegant design?

[macker]

Originally Posted by Handsome B. Wonderful

Apple dominates the internet with elegant design?

I Googled the full quote for you
http://www.forbes.com/sites/frederic...-the-internet/

[Slava]

Originally Posted by fleury

Personally, I think hiring internally, almost no matter how good the candidate is, sends a negative vibe to many investors. RIM's problems have been their innovation and internal corporate culture where it's alright to mislead consumers and investors about release dates, problems etc. Bringing in a guy internally shows it's the old boys club running RIM.

Regardless, I'm sure the stock will raise by a dollar at some point tomorrow (always goes up on any hopeful news), but by weeks end will probably be where we are tonight. Anyone wanna take their own guess what RIM.TO will open at tomorrow?

My guess: $17.90

Gold star for you! So far the shares are up about 4% in pre-market trades and I think that's at $17.92.

[Cowperson]

Originally Posted by CofR

The Yotes outlasted Balsillie. Who would have guessed that?

Me for one.

RIM has been rolling towards the grave for a number of years, including the time Balsillie was trying to heist the Coyotes and the NHL has been fairly determined to go the extra mile to keep them in Phoenix.

Karma's a bitch . . . .

There's a least one guy in the world wearing a murderous smirk today . . . .



He will keep the Yotes in Phoenix now for a while as a weapon against the NHLPA . . . . .

I think Balsillie's abrupt departure from the scene was basically a "get your ass back home" call to action from his Board . . . . . but it was too little, too late.

They're not dead yet but stuff has to change. Mostly likely they'll be absorbed by another company.

Cowperson

[Slava]

Originally Posted by fotze

Nope. At least the financial post has a headline story about the stock being up 4% in pre-market trading, but the real trading shows its down 4.5%.

With SillyBalls, I wonder if the same qualities that helped him build the company, stubbornness, tunnelvision are what makes him a bad leader for the company in the past 5-10 years.

Haha, ya I saw that. I figured the shares would open higher, but maybe the comments from the new CEO weren't met with a lot of optimism. It was supposedly trading higher in the pre-market, but as soon as the bell rung it was down by 4-5%. The perils of day trading I suppose.

[HotHotHeat]

Originally Posted by MrMastodonFarm

Not that I believe they do, but how do you know that?

Because it's painfully obvious. What have that released in the past 5 years? Phones that look the same and a tablet that basically was dead before it even came out.

[Regular_John]

At this point RIM is pretty much where Apple was in 1996-97. On the verge of collapse, a confusing product line and falling further behind the market. Heck they've even got their own Newton, the playbook.

Honestly I still think there are enough dyed in wool blackberry users/companies that RIM can turn this mess around. But they can't afford anymore screw ups or stop gap hardware, or vaporware with "that feature will be added down the line".

Side note, worth picking up RIM stock at rock bottom prices?

[Barnes]

http://techcrunch.com/2012/01/23/new...change-needed/

When asked if there was anything Heins wanted to do in the past, but was held back from by his position, Heins confirms that he (along with the freshly removed prior leadership) doesn’t see much wrong with RIM.

“At the time, the company was growing but still acting as a startup,” said Heins. “But startup processes don’t scale. Every company goes through that phase. I had the opportunity to learn about RIM here. I don’t think that there is a drastic change needed. We are evolving our tactics and processes. I don’t feel that I was held back in any way to do what I needed to do.”

So, let’s just parse this out, shall we? Heins, as COO, was never held back in executing operational decisions or strategies. That means that anything he has wanted to do to help grow (and likely save) the brand, he could’ve already done. In other words, don’t expect a brand new BlackBerry or a brand new RIM.

[Reaper]

So, Jim Ballsille is basically the Francesco Schettino of the cel phone world then?

[Slava]

Originally Posted by fotze

I have never understood that pre-trading business. Is there some black market for stocks out there?

Also its down 7% now.

Well basically it's just activity before the market opens. Some brokerages allow trades before the markets open, but it's a little more limited. You have to put in limit orders where you specify the minimum you would sell for or maximum you would pay. The volumes are usually light and for these reasons its not always reflective of the normal hours. A lot of this trading is on early morning news, hence us seeing RIM here.

[OldDutch]

I don't see any shock or surprise in what the new CEO is saying. Just like a GM of a hockey club, you need to put a face on your assets, even if they are under performing.

BB 10 or BBX or whatever it is called, is their hail Mary. Way too much invested at this point to change strategy. Plus I doubt there is a Plan B, other than sell out to another player.

I kick BB as much as everyone else. The market shifted right out from under them. We need to remember that Android was a bit of a flip too until the Droid came out. That is when BB was really screwed. Add to it that they came out with a total junk touch phone of their own called the Storm, and that is why they are here today.

I am sure BB 10 will be fantastic. They problem is I don't see it as a game changer. Everyone has their niche market in cell phones, and it would take quite the phone to make any dent in that.

I guess if there is any positive take away, it is that as of today they have a better shot than Windows Phone 7. Problem is that by the time their new phone hits, Windows Phone 8 will be coming out, and have had a whole year to wow and educate consumers.

So ya, I think this time next year we are talking about how RIM was sold to Major Player X, and how we all got here.

[macker]

Originally Posted by fotze

Nope. At least the financial post has a headline story about the stock being up 4% in pre-market trading, but the real trading shows its down 4.5%.

With SillyBalls, I wonder if the same qualities that helped him build the company, stubbornness, tunnelvision are what makes him a bad leader for the company in the past 5-10 years.

So what do they do.......replace him with another operations guy who also lacks vision and is giving his best attempt at calming the market with his Muhammad Saeed al-Sahhaf take. How do you compete with Apple a company founded and based on vision when you have no vision yourself. RIM starts trading today with a market cap of $9 Billion off a little bit from where it was in May of 2008 when it had a market cap of $80 Billion. Company is still operating based on May 2008 thinking but the market isn't buying it. Company will be fine until May 2012 but by May 2013 I would be shocked if RIM is still traded. Some time is required to circle the drain.

[Slava]

Originally Posted by macker

So what do they do.......replace him with another operations guy who also lacks vision and is giving his best attempt at calming the market with his Muhammad Saeed al-Sahhaf take. How do you compete with Apple a company founded and based on vision when you have no vision yourself. RIM starts trading today with a market cap of $9 Billion off a little bit from where it was in May of 2008 when it had a market cap of $80 Billion. Company is still operating based on May 2008 thinking but the market isn't buying it. Company will be fine until May 2012 but by May 2013 I would be shocked if RIM is still traded. Some time is required to circle the drain.

Well that's one way of looking at it, but here's another thought. They promoted an operations guy because to preserve any value they have to get the next launches and release dates right. Operations is their focus at this point. They brought in Prem Watsa and will look at both licensing options as well as other ways to find value going forward. I wouldn't surprised if there is a deal for licensing with a manufacturer like Samsung, but it's hard to predict. The thing that everyone seems to agree on is that (a) their market share is gone for good and (b) the company is not worth zero. Prem Watsa was brought in to help figure out what should be done to get the most they can (purely IMO).