I can just imagine the PR people at Research in Motion wincing today when CEO Thorsten Heins made this comment in an interview in Canada on CBC News’ Metro Morning. “There’s nothing wrong with the company as it exists right now,” he said adding that “this company is not ignoring the world out there, nor is it in a death spiral.” Many investors disagree: RIM’s U.S. shares are down 49% in 2012 — and nearly 75% for the last 12 months — as Blackberry loses market share to Apple’s iPhone and phones powered by Google’s Android operating system. Heins announced last week that he plans to lay off 5,000 employees and delay the Blackberry 10 operating system update to early 2013. Heins acknowledges that RIM “is very, very challenged at the moment — specifically in the U.S. market. The way I would describe it: we’re in the middle of a transition…and I’m positive we will emerge successfully from that transition.” Another RIM exec, Global Sales EVP Rick Costanzo, told the Financial Post today that “I would say a couple of very specific points to the guys who are actually calling for our demise: US$2 billion in the bank and zero debt…We continue to grow net cumulative subscribers — does that sound like a company in demise?”
By DAVID LIEBERMAN, Financial Editor | Tuesday July 3, 2012 @ 11:53am EDTTags: BlackBerry, Research In Motion
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This article was printed from http://www.deadline.com/2012/07/research-in-motion-ceo-denies-that-the-blackberry-maker-is-in-a-death-spiral/