The former smartphone-giant is now a fledgling company – Some options as to what they can do.
Over the past year, we’ve seen RIM’s stock price drop from $30 to $7. It’s no secret that RIM is struggling to find a place in the smartphone market. According to a recent study, BlackBerry US market share has dropped from 24 percent two years ago to just under 10 percent this year. Can BlackBerry pull off a comeback? Not many think so. Being such a big company and falling from such a height has been devastating for the company and its finances, and it’s not likely they can make a turnaround. We love talking about BlackBerry here at ProOnGo and here are a few options of the direction we think Blackberry can go:
- Slim down the phone offering
Slimming down the phone offering would mean cutting a lot of the phones they plan to release. This makes a lot of sense considering they release multiple versions of the exact same phone every single year. Can you tell me the difference between the BlackBerry Bold and the BlackBerry Curve? How about the BlackBerry Bold 9930, 9900 and 9790? The fact of the matter is there is barely any difference between these devices and the manufacturing costs surely trump the additional business they get from users that prefer there to be millimeters of space between the keys on the keyboard, and those that don’t.
- Keep the software side
BlackBerry software’s security is rivaled by none other. That’s why BlackBerry has been the #1 choice for IT departments for the past decade. So they’ve got that going for them — which is nice — but is security enough to maintain a footing in the smartphone market? It’s certainly possible that BlackBerry could maintain a presence in the smartphone market if they are able to slim down their expenses and look to other manufacturers to produce their phones. Manufacturers like Samsung and Nokia have been willing participants to take on other operating systems.
- Keep the hardware side
After announcing the ability to launch Android application on BlackBerry’s, as well as the speculation that BlackBerry and Microsoft could team up, RIM could end up ditching its software side and keeping its role as manufacturer. In this case, they greatly reduce the size of their company, but can still maintain a presence in the market because they are not married to any OS’ outcome. However, RIM bought the QNX platform a couple years ago for A LOT of money, and we think making the decision abandon such an expensive investment would be a tough decision for RIM’s board.
- Abandon ship – sell the pieces
The last option is to abandon ship and sell off the pieces. End the company, hire a moving company, put stuff in cardboard boxes. However, who will buy it is a completely separate issue