RIM currently enjoys 50% of the developing smartphone market, but apparently that isn't a big enough lead for the "struggling" Canadian company. Some analysts are predicting that RIM will lose up to 10% of the market over the next four quarters. And they are basing this on the recent stock release from RIM.
Unlucky is probably the best way to describe RIMs situation.
RIM predicted that they would garner over 3.7 million customers this past quarter. They managed to find them, but apparently when you give a range, and then you hit the low end of your target, you are chastised for meeting your goal - but just barely. The challange for RIM isn't with current market predictions, but, the challenges that lie ahead.
The competitive landscape is more fierce then it's ever been for RIM. A few years ago RIM owned the smartphone market, now Apple and Google are gaining ground quickly. It seems that in the mean time the wind isn't at RIM's back. And with the captain, CEO Jim Balsillie more focused on getting an NHL franchise then running RIM, the shareholders need to start asking questions.
The headline in today's Toronto Star is "NHL Victory is Canada's Loss". NO IT ISN'T. Let's correct the headline.
NHL VICTORY IS CANADA'S GAIN.
The tech sector, more then any other industry, moves at an extremely fast pace. It would take years for McDonald's to lose their footing in the food war, but, in the tech sector one wrong move, or maybe one right move by your competitor and you could be done !
Maybe now that Balsillie has lost the NHL franchise he will regain his focus and pay attention to keeping RIM at the top of the market. With Nortel gone, RIM is now Canada's flagship Telecom company. If Balsillie had won this franchise he would have spent his attention on moving the Phoenix Coyotoes to Hamilton. Now that he's lost the franchise it's time to get back to work. Canada needs a focused Jim Balsillie !