Winnipeg Free Press - PRINT EDITION

RIM CEO doesn't buy 'death spiral' commentary

  • Print

TORONTO -- Research In Motion chief executive Thorsten Heins was on the defensive Tuesday, insisting "there's nothing wrong with the company as it exists right now," and he's confident the company will get past its current challenges.

Heins led the march of several executives who fanned out to media outlets in an effort to cast a positive glow on the company, which has been facing an increasing amount of negativity over its seemingly endless problems.

Last week, RIM shocked the market with another delay to its crucial BlackBerry 10 operating system, which has been considered by many as a last-ditch effort to save the company. But that was only part of the bad news.

RIM also said it would layoff about 5,000 employees as it slashes costs across the organization to contend with faltering sales of its BlackBerry smartphones and a quickly eroding stock price.

In morning trading on Tuesday, RIM's stock was down seven cents to $7.47 on the Toronto Stock Exchange.

Heins acknowledged the company faces a challenge to regain market share in the United States, but insisted RIM isn't in a "death spiral."

"There's nothing wrong with the company as it exists right now," Heins said on CBC's Metro Morning radio show.

"I'm not talking about the company as I, kind of, took it over six months ago. I'm talking about the company (in the) state it's in right now."

Heins said the major changes RIM has made to its management and business objectives since he became CEO in January are part of a massive transition to a whole new technology platform.

He said sales in other parts of the world remain strong and argued the transition to the BlackBerry 10 will be a completely different way for RIM to address mobile computing.

But before that launch sometime early next year, RIM needs to survive the rest of 2012. Many analysts expect that will be particularly challenging as the company tries to market its older lineup of smartphones to savvy North American users who could easily switch to brand new Android phones or the new Apple iPhone expected sometime this fall. In many ways, RIM is turning to its global customer base in hopes that'll keep the company's sales float in the meantime.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition July 4, 2012 B3

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Winnipeg Cheapskate: Preparing for Boxing Day

View more like this

Photo Store Gallery

  • A Canada goose protects her nest full of eggs Monday on campus at the University of Manitoba- Standup photo- Apr 30, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Two Canada geese fly Wednesday afternoon at Oak Hammock Marsh- Front bird is banded for identification- Goose Challenge Day 3- - Apr 30, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What's your take on the Jets so far this season?

View Results

View Related Story

Ads by Google