How to Put RIM Out of Its Misery
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
"There is winning and there is misery." -- Bill Parcells
NEW YORK (TheStreet) -- If you have been an investor in beleaguered tech giant Research in Motion (RIMM)over the past couple of years, it is safe to say that you are feeling pretty miserable. If you're not feeling some form of misery then you are probably not paying attention. Better yet, I would like to hear from you so you can share your coping strategies because as the quote above from legendary coach Bill Parcells states, there is no middle ground between winning and misery.
It's a foregone conclusion that RIM has lost its fight with Apple (AAPL) and Google (GOOG) over the smartphone and devices market -- a market that by all accounts that it perfected after trouncing Palm in the same manner that it now finds itself. What is the silver lining and can it recover?
The quarter that wasIn the company's first quarter 2012 earnings results it reported revenues of $4.2 billion -- a number that represents a drop of 19% from the previous quarter. RIM attributed the decline to decreased BlackBerry smartphone shipments falling from 14.1 million in Q3 to 11.1 million in Q4, as well as a higher proportion of lower ASP products in the mix. RIM also said that the BlackBerry smartphones continue to sell well into the prepaid and entry-level market, and the Bold 9900 continues to gain traction while certain models of the BlackBerry 7 were not selling as well as the company had anticipated.
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