Research In Motion reported earnings last week which fell short on the top line by a whopping $200 million in sales.
It's no secret that Research In Motion's Blackberry is rapidly losing market share.
Blackberry has gone from dominating the market with no other major competitor to now only having 41% of market share while Apple and Google continue to gain market share.
Research In Motion has also slashed its outlook for the full year by over 40%, predicting earnings of between $4.25 and $6 per share, down from $7.50. The lowered guidance had investors dumping RIM's stock, it's down nearly 20% since last Friday.
It's obvious to everybody that customers are dumping the Blackberry in favor of Apple's iPhone and Google's Android. That is obvious to everybody except Jim Balsillie and Mike Lazaridis, the company's co-CEOs.
In the conference call last week, Research In Motion argued with institutional investors and money managers.
After announcing a wide-reaching plan to completely overhaul its organization through new product launches, cut backs and layoffs, Balsillie argued with investors for referring to his reforms as a "restructuring" and "reorganization".
Are you kidding me? These CEOs want everyone to use the term "streamlining"?
It's the Jedi Mind Trick. We are not restructuring or reorganizing, we are streamlining.
Sounds to me like Research In Motion is currently being ran by two idiots who are in denial about the dire position their company is in.
You never argue with investors because it's their money you're asking for. If investors see the big changes you are making and call it "restructuring" and "reorganization" you don't argue with them.
Some investors have been calling for co-CEOs Jim Balsillie and Mike Lazaridis ouster or at the very least an end to their power-sharing arrangement.
In last Thursday's earnings call, Jim and Mike responded. Jim and Mike's argument to their critics was no way man. We're awesome.
No one is denying that RIM has grown into a huge company over the last 20 years. But that's ancient history now and isn't going to drive shares up in the future. These are very different times, and Balsillie's implication that he and Lazaridis are the only two executives on the face of the planet capable of continuing RIM's legacy seems, well, stupid.
In fact, it's this dynamic duo that orchestrated RIM's strategic mistakes that brought the company to this sorry state in the first place. Responsibility for this rests firmly with the co-CEOs, who clearly had their heads in the sand when Apple’s iPhone and Google’s Android first began to emerge as a threat back in 2007. Not only did they have their heads in the sand back in 2007 when the iPhone began taking away their market share, but they have their heads in the sand even now regarding their sorry leadership that got them into this mess in the first place.
Look guys, let's just do what needs to be done here to the CEO's of RIM for blowing smoke all these years about: how their next phone is going to be a quantum leap beyond anything else on the market, or my favorite, how their next phone is going to be an iPhone killer, and most of all, how these CEOs have lost all our money. Let's just do what needs to be done and unleash the pimp hand.