Lack of innovation, not reading the smartphone market trends – the once-leading mobile handset manufacturer is looking like a dinosaur. Our verdict? If it wasn’t for the Blackberry Messenger tool and the loyalty of corporates, then they’d be facing extinction. Here’s the latest on the giant’s downfall…
Research In Motion is losing market share much faster than expected not just in the UK, but globally, amid mounting concerns over its cash flow and ability to meet outlook, analysts warned on Friday.
Second-quarter revenue from international operations, excluding UK, fell 15 percent from the previous quarter, proof that the decline in RIM’s market share is not constrained to the US and UK markets.
RIM’s BlackBerry, once a byword for corporate communication, has lost ground to Apple’s iPhone and devices running Google ‘s Android software.
Market anaytlst firm Goldman Sachs estimates RIM’s global market share declined to 9 percent in the second quarter from 16 percent a year ago.
The Nasdaq-listed shares of the BlackBerry maker tumbled about 21 percent in pre-market trading.
On Thursday, the company posted a sharp drop in quarterly profit, painted a dismal picture for the current quarter and said it now expects to reach only the lower end of an already reduced full-year outlook.
RIM’s Co-Chief Executive Mike Lazaridis, in a conference call after the results, said he was confident that RIM was on track to return to growth in the third quarter, while co-CEO Jim Balsillie promised a software upgrade he dubbed PlayBook 2.0.
