RIM death watch

Page 17 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.
Toggle sidebar Toggle sidebar
rockyct

rockyct

Diamond Member
Jun 23, 2001
6,656
32
91
Imp said:
By that time, iPad 3 will probably be out, then you can get an iPad 2 for cheap...

No plans for a new version of the Playbook and remember that it came out last March/April.

Plans are for BBX phones in Summer 2012, IIRC? And for the Playbook big update in February 2012. Dates are probably as accurate as they were in the past.
Click to expand...
They say Windows Phone 7 was late to the party, but this is two years after that. Not only does BBX have to be much better than anything else when it's released, but the company has to survive another nine months. Nine months ago seems to be the start of the company's free fall (when this thread was created) from ~$60 to now ~$17.
 
Pliablemoose

Pliablemoose

Lifer
Oct 11, 1999
25,195
0
56
RIMM is facing a serious credibility problem after the PlayBook fiasco, with a million expensive tablets sitting in warehouses they can't unload at fire sale prices with the new OS that they can't manage to even produce a native email or calendar app for after nearly a year?

I have a 16GB PlayBook coming, but wish I'd have waited, they'll have to drop the prices even further to move the PlayBooks. Even after a 2/3rds price cut, they have a million+ left to move.
 
3chordcharlie

3chordcharlie

Diamond Member
Mar 30, 2004
9,859
1
81
Pliablemoose said:
RIMM is facing a serious credibility problem after the PlayBook fiasco, with a million expensive tablets sitting in warehouses they can't unload at fire sale prices with the new OS that they can't manage to even produce a native email or calendar app for after nearly a year?

I have a 16GB PlayBook coming, but wish I'd have waited, they'll have to drop the prices even further to move the PlayBooks. Even after a 2/3rds price cut, they have a million+ left to move.
Click to expand...
It doesn't help that they sold out everywhere, instantly, and stayed that way.

I ordered one for my mom who wants a tablet to read the paper and search wikipedia. But I still don't know if they are going to fill my order.
 
Imp

Imp

Lifer
Feb 8, 2000
18,828
184
106
rockyct said:
They say Windows Phone 7 was late to the party, but this is two years after that. Not only does BBX have to be much better than anything else when it's released, but the company has to survive another nine months. Nine months ago seems to be the start of the company's free fall (when this thread was created) from ~$60 to now ~$17.
Click to expand...

Ya, you can "forgive" Microsoft because Windows Phone is a blip in their portfolio, not their core "raison d'etre". Long story short, they don't have Windows, Office, and business service products to tide them over.

I can't believe they have 1 million Playbooks in inventory... Two borderline fire sales later (the $200 discount AND the $300 discount). And from what I've read, they only sold like 150,000 in the past quarter during the fire sale. So I'm going to guess that that most of those 500,000 "shipped" during the quarter Playbook released didn't quite end up in consumers' hands. What were they smoking when they put in the order when demand was so low? Or was it overly optimistic forecasts? <Rhetorical>
 
L

Lifted

Diamond Member
Nov 30, 2004
5,748
2
0
rockyct said:
They say Windows Phone 7 was late to the party, but this is two years after that. Not only does BBX have to be much better than anything else when it's released, but the company has to survive another nine months. Nine months ago seems to be the start of the company's free fall (when this thread was created) from ~$60 to now ~$17.
Click to expand...

9 months? At the end of their 2nd quarter (Aug/Sep) they had revenue of $4.2 billion and net income of about $500 million, with $1.4 billion cash on hand after spending $1.5 billion on the purchase of Nortel patents along with Apple, Microsoft, and Sony. They've already said 3rd quarter revenue is > $5 billion, slightly lower than the 5.3 - 5.6 they had projected, but not even close to "we're going bankrupt within a year".

While I think the company doesn't have a bright future at this point, thinking they can't last 9 months is ridiculous. AMD has been struggling for ever, losing cash quarter after quarter for years (decades), and they are still around, barely, as usual.
 
Last edited:
C

Corporate Thug

Lifer
Apr 17, 2003
37,622
0
76
I don't think RIMM is going anywhere in the new future, but that's the problem...they aren't going anywhere. It's another "meh" company with a "meh" future.
 
rockyct

rockyct

Diamond Member
Jun 23, 2001
6,656
32
91
Lifted said:
9 months? At the end of their 2nd quarter (Aug/Sep) they had revenue of $4.2 billion and net income of about $500 million, with $1.4 billion cash on hand after spending $1.5 billion on the purchase of Nortel patents along with Apple, Microsoft, and Sony. They've already said 3rd quarter revenue is > $5 billion, slightly lower than the 5.3 - 5.6 they had projected, but not even close to "we're going bankrupt within a year".

While I think the company doesn't have a bright future at this point, thinking they can't last 9 months is ridiculous. AMD has been struggling for ever, losing cash quarter after quarter for years (decades), and they are still around, barely, as usual.
Click to expand...
I'm not saying that they won't be around in nine months, but in nine months, their company can be so damaged that it won't matter what they come out with.
 
Imp

Imp

Lifer
Feb 8, 2000
18,828
184
106
Forgot about earnings, it's Thursday!

Going to be exciting. Money on it going down from subscriber loss, Playbook write down, etc.
 
Imp

Imp

Lifer
Feb 8, 2000
18,828
184
106
Excitement!

I have zero real financial interest in them, but watching them crash and burn is just plain fun now.
 
Hugo Drax

Hugo Drax

Diamond Member
Nov 20, 2011
5,647
47
91
Tape shows 14.19 AH

Research In Motion Ltd.'s (RIMM) said fiscal third-quarter earnings fell 71&#37; after taking a $485-million, pre-tax, mostly non-cash charge related to unsold PlayBook tablets.

RIM reported net income of $265 million, or 51 cents a share, compared to $911 million, or $1.74 per share, in the year-ago period. Revenue for the BlackBerry maker was down 6% at $5.17 billion, compared to $5.5 billion in the fiscal third quarter last year. RIM said it shipped 14.1 million smart phones in the quarter.
 
Last edited:
Imp

Imp

Lifer
Feb 8, 2000
18,828
184
106
"In line with expectations"...
http://www.theglobeandmail.com/globe-investor/rim-results-in-line-with-expectations/article2272750/


Down 7&#37; after-hours trading:
http://money.cnn.com/quote/quote.html?symb=RIMM


This is probably what killed it:

&#8220;RIM continues to have strong technology, unique service capabilities and a large installed base of customers, and we are more determined than ever to capitalize on our strengths to overcome the recent execution challenges surrounding product launches and the resulting financial performance,&#8221; said co-CEOs Mike Lazaridis and Jim Balsillie in a statement.
 
Last edited:
Hugo Drax

Hugo Drax

Diamond Member
Nov 20, 2011
5,647
47
91
14 handle broke. Saw prints of 13.88 on RIMM.

RIMM is doomed, Two CEOS is worse than one CEO.
 
J

JS80

Lifer
Oct 24, 2005
26,271
7
81
Hugo Drax said:
Tape shows 14.19 AH

Research In Motion Ltd.'s (RIMM) said fiscal third-quarter earnings fell 71% after taking a $485-million, pre-tax, mostly non-cash charge related to unsold PlayBook tablets.

RIM reported net income of $265 million, or 51 cents a share, compared to $911 million, or $1.74 per share, in the year-ago period. Revenue for the BlackBerry maker was down 6% at $5.17 billion, compared to $5.5 billion in the fiscal third quarter last year. RIM said it shipped 14.1 million smart phones in the quarter.
Click to expand...

lol i love the "non-cash charge" which was probably counted as cash capex costs related to the development of the playbook.
 
silverpig

silverpig

Lifer
Jul 29, 2001
27,703
12
81
It's funny, they are still profitable, still make money every quarter, and still ship millions of devices each quarter, yet people say they are toast. Look at AMD and how long they're around. RIM today isn't RIM of 1 year ago, but they're no AMD.
 
J

JS80

Lifer
Oct 24, 2005
26,271
7
81
silverpig said:
It's funny, they are still profitable, still make money every quarter, and still ship millions of devices each quarter, yet people say they are toast. Look at AMD and how long they're around. RIM today isn't RIM of 1 year ago, but they're no AMD.
Click to expand...

You're not a forward looker
 
Deeko

Deeko

Lifer
Jun 16, 2000
30,213
12
81
silverpig said:
It's funny, they are still profitable, still make money every quarter, and still ship millions of devices each quarter, yet people say they are toast. Look at AMD and how long they're around. RIM today isn't RIM of 1 year ago, but they're no AMD.
Click to expand...

Not to mention an improvement of 35% in active subscribers year of year. Investors are freaking out because the PlayBook hasn't taken off - but lets be realistic. Shouldn't that disappointment have waned after the initial expectations weren't met? The investors are acting like the PlayBook numbers are shocking....they aren't at this point.
 
T

the DRIZZLE

Platinum Member
Sep 6, 2007
2,956
1
81
JS80 said:
You're not a forward looker
Click to expand...

I've been advocating shorting RIM since it was at $60 but IMO there is a segment of the market that they will hold onto for a long time. Some companies/government agencies just want a secure phone and email device and view all the other features as a security risk. The question is what percent of the smartphone market that is and what level of long term cash flow RIM can expect to generate from that.

That said RIM management has shown themselves to be incompetent so I can understand not wanting to touch the stock at any price while they are in control.
 
Imp

Imp

Lifer
Feb 8, 2000
18,828
184
106
Deeko said:
Not to mention an improvement of 35% in active subscribers year of year. Investors are freaking out because the PlayBook hasn't taken off - but lets be realistic. Shouldn't that disappointment have waned after the initial expectations weren't met? The investors are acting like the PlayBook numbers are shocking....they aren't at this point.
Click to expand...

IIRC, RIM was around $40/share up until the Playbook was announced. So, it looks like the Playbook + perks premium pushed it to ~$65.

The drop from ~$40 to $15 looks like worry about their core phone business and slowing growth.

That's my guess!
 
You must log in or register to reply here.

TRENDING THREADS

COMPANY
RESOURCES
FOLLOW
Top Bottom