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Winnipeg Free Press - PRINT EDITION
RIM CEO doesn't buy 'death spiral' commentary
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
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