Why is it that RIM, when faced with legitimate criticisms about the state of its company, can only spit out garbled bullshit in response? The latest example lies within their retort to an open letter from a supposed senior-level RIM employee.
The original letter blasted RIM for not addressing the needs and wants of users, putting out unfinished products, overstretching the brand and allowing employees to underperform. Boy Genius Report just posted RIM's response, and the Canucks kicked off their response in the right way, admitting that they're in a transitional period. But then it all goes downhill from there.
There is a fundamental business reality however that following an extended period of hyper growth (during which RIM nearly quadrupled in size over the past 5 years alone), it has become necessary for the company to streamline its operations in order to allow it to grow its business profitably while pursuing newer strategic opportunities. Again, RIM's management team takes these challenges seriously and is actively addressing the situation. The company is thankfully in a solid business and financial position to tackle the opportunities ahead with a solid balance sheet (nearly $3 billion in cash and no debt), strong profitability (RIM's net income last quarter was $695 million) and substantial international growth (international revenue in Q1 grew 67% over the same quarter last year). In fact, while growth has slowed in the US, RIM still shipped 13.2 million BlackBerry smartphones last quarter (which is about 100 smartphones per minute, 24 hours per day) and RIM is more committed than ever to serving its loyal customers and partners around the world.
Hyper growth? Really? And I'm glad RIM's balance sheet looks pretty, but they shouldn't be consoling themselves about their shrinking market share. Also, how about acknowledging product development? Because honestly, when was the last time they shat something out that instilled more than just a flock of suits with some zeal? Bottom line, RIM just needs to stop talking. [BGR]