Research in Motion, the maker of the now unpopular Blackberry smartphone, is facing a bleak future with the Canadian Company set to pull out of the consumer phone market.On Friday two of RIM’s most senior executives stepped down from the struggling Company who is now believed to be looking for a buyer, a move which the Wall Street Journal claims will be a struggle.
On Saturday RIM reported a loss of $US125 million, revenue fell 25 per cent to $US4.2 billion from $US5.6 billion. Analysts were expecting $US4.5 billion.
“We can’t do everything ourselves but we can do what we’re good at,” RIM CEO Thorsten Heins said after announcing a major refocus for the struggling Company.
RIM has had limited success trying to enter consumer markets in recent years, and Heins said a turnaround required “substantial change”.
Heins said that RIM is still planning to roll out new BlackBerry smartphones later this year. But RIM also said it was conducting a “comprehensive review of strategic opportunities.”
The Wall street Journal said that a key challenge for a foreign buyer could be the Canadian government, which requires that foreign companies demonstrate a “net benefit” to Canada in any big takeover deal.
Legal experts say a buyer could also make promises to keep the headquarters or a large number of employees in Ontario.
Canadian Finance Minister Jim Flaherty said RIM “will be masters of their own universe.”
Observers claim that ven companies from countries with strong ties with Canada, such as Microsoft, would face scrutiny.
As part of its review, RIM itself might decide to close parts of its business to focus on its few remaining strengths, though no decisions have been made, a person familiar with the company’s thinking said.