RBC Capital Market Analysts Suggest Fixing Four Key Issues To Get RIM Back On Track
We are well aware of RIM's financial issues this year, and it seems as though just about everyone seems to have an opinion on this. I like most committed BlackBerry users tend to take most "analysts" opinions on RIM's financial future with a grain of salt. It does not mean that I refuse to adhere to any analysts comments, but it proves to be beneficial to sift through the nonsense, and get to the real issues.
Many times these "real issues" or concerns come from consumers like you and I. The problem is that most times our views are ignored by corporations, but I think its way past time for big companies to listen to the consumers of their products. Its not very often that you find consumers, and financial advisers on the same page.
RBC Capital Markets analysts, recently suggested four issues that they think that RIM must address in order for them to improve their stock, and ultimately their image. Lets take a look at these four issues.
1. Backwards-Looking, Uncompetitive Products and Software. Four years after iPhone launched, RIM still hasn’t launched competitive Smartphone innovations or addressed its ‘app gap’. With QNX, we believe RIM needs to renew its focus on innovative, bold user experiences.
2. Marketing and Launch Execution. RIM continues to ship products late (e.g., BlackBerry 7) and incomplete (PlayBook minus 3G/email, underpowered Torch 1; Torch 9850/9860 with inferior virtual keyboard, etc.). RIM needs to improve execution as competitors are bringing their ‘A’ game, and have out-maneuvered RIM on marketing, positioning it as passé.
3. Investor Credibility/Visibility. RIM’s apparent inability to offer reliable guidance (including Q2 miss and retracting over-optimistic projections) has created, in our opinion, a formidable credibility gap with the investment community that needs correcting.
4. Governance. To us, RIM’s board has an opportunity to take a more active role in providing a ‘check and balance’ on key management decisions.
Does any of this sound familiar? It should, as this is what we as consumers have been talking about in our forums, chat rooms, and blog posts over the past few months. I think we can all agree that points one and two hit home for many of us who have expressed these thoughts many times. PlayBook owners can testify even further to these points as we have seen these issues first hand. However, we also duly note the quality of the QNX based operating system working in perfect hormony with the hardware on the PlayBook, and can only imagine what the smoothness will be like on a mobile device.
The last two points are more investor related. No, we are not all investors in the the company RIM, but to me the investment starts with a well delivered product, my BlackBerry. These are just my thoughts, now its time to here from you. What do you think of these points are they valid? Are they practical? Do you have an opinion on this issue? Please share with us.