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RIM Earnings Call Questions and Answers Highlights & Tidbits

Hey everyone,

This earnings call was ANOTHER tough pill to swallow for us RIM faithful.  I cataloged the different items that came up in the Q&A session after the earnings call. Here are the highlights:

Here are the highlights:

  • BB10 Devices hitting mid-late 2012 due to lack of integrated LTE/Dual Core chipsets
  • Starting in the beginning of 2012, RIM will be dropping an estimated $100 million per quarter
  • This $100 million will go to aggressive advertising, promotions to decrease costs of phones, discounted apps.. .pretty much everything is on the table
  • OS 2.0 still on track for February, no delays there
  • Mike and Jim are reducing their salary to $1 effective immediately
  • Mike and Jim say its impossible to be in the Smartphone/Superphone business and NOT be in the Tablet business
  • Mike and Jim repeatedly acknowledged RIM sucks in America and the $100 million dollar quarterly budget is specifically designed to address the American market
  • A lot of the right words being said… but in the end, not much new information beyond the above

Overall the tone was very subdued and clearly no one was happy.

It will be interesting to see how the aggressive ad campaign in the US of A will change things.  I don’t think anyone at RIM is crazy enough to think they can really recapture much market share, but, maybe the a NEW BIG ad campaign, combined with great phone pricing will stop the bleeding a little bit more than if RIM sat back and did nothing.

Jim and Mike also gave the impression the discounts on the Playbook will continue into the new year and that they are 100% viewing the Playbook as a development base for the BB10 phones.  I agree with this sentiment and I think its an overall good move.

RIM is going for broke and their words suggest they want to get it RIGHT this time as opposed to rushing something.

18 total comments on this postSubmit your comment!
  1. Good news that they’re heavily investing and cutting their salaries. I’m also glad tablet OS 2.0 is still on track. Still pretty disappointed about the BB 10 phone delay though. :(

  2. Let’s hope OS2 is great, it’ll be the only good news until late 2012.

    My guess is a lot of deals on the OS2 Playbook and BB9000 packages.

    A really good OS2 could just save RIM’s A**.

    • Yea I just updated the post to reflect this sentiment

      Combining the $100 million quarterly budget with the Playbook discounts equals RIM throwing money at America to keep it interested.

      Clearly this is an expensive solution, but, it does have a hope of stopping the mass exodus

  3. I think everything mentioned in the earnings call was expected. There was no surprises. RIM going for broke is a good thing, and I expected a May/June release for the BB10 devices — announced at the BlackBerry World Conference. We should see some sneakpeeks early in the new year.

    • Look, its an accepted fact. OS 7 sales will continue to decline. This is due to many different reasons.

      I am hoping the 100 million dollars will be used to keep Blackberry relevant even in the face of decreasing sales.

      If Blackberry can APPEAR to be doing well and APPEAR to be popular. Guess what… the general public will believe it.

      Yes the individual may be using an iPhone or Android, but, they will be sitting back and thinking… wow.. Blackberry must be doing well.. they have tons of ads

      Thats how ads work on the general public. Will they work on us the educated fan boys? NO… but despite our delusions of majority, we are a minority.

      I think if the ads and marketting is effective, it can create a momentum that builds into the BB10 release campaign.

      Do not discount the Playbook. If they are willing to eat losses, getting the Playbook out there at $199.99 will do tremendous things for keeping Blackberry relevant.

      Given the LTE/Dualcore chipset predicament… I think RIM is choosing the best possible strategies….

  4. That’s what I thought when reading their statement. the worse is still to come. At least 2 quarters of losing a lot of ground because I don’t know many people that will be interested in buying a phone with over a year old technology in April/May next year after having seen all the new Androids and heard all the iPhone 5 rumours…

    They will need to perfectly execute the re-launch of the PlayBook. 7″ is the right size for a personal device. They just need to add all the features that make the BlackBerry platform popular: Security, reliability, best texting experience, all the basic apps.

    • Ofutur… you speak truth for once lol!

      Again, though, I think the $100 million marketting budget could be interesting if implemented properly.

      I think the general public thinks Blackberry is behind.. because Blackberry isn’t out there telling them they are wrong.. in fact.. Blackberry isn’t out there saying anything.

      I am up here in Toronto.. a hot bed for Blackberry.. guess how many official Blackberry ads I have seen in the last 2 months… ZERO

      I can only imagine its the same in the USA.

      Look… will a huge marketting campaign suddenly recapture mass amounts of the market share? NO… will it have some positive impact.. .of course…any aggressive will implemented ad campaign will have a positive effect

      If it costs them 200 million in marketing and another 300 milion in Playbook loses in the next 6 months to keep their marketshare where it is… I think its worth it

      Remember.. its not OUR money to spend. if the only way RIM can maintain or only slightly lose marketshare over the next 6 months… then let them throw money at it. RIM is in this for the long haul, the next 10 years

      • I always speak the truth 😛 or play devil’s advocate ;).

        RIM is throwing lots of money in ads in the UK. When the 9900 launched, you could literally see ads everywhere, around Silicon Roundabout, in the tube, at Selfridges, etc. and when you look around, it’s not just businessmen that hold the more expensive models, so I’d be curious to see how effective those campaigns were. Is RIM still gaining market share in the UK or has the decline started? How long can ads distort the truth once the other manufacturers have plugged all the gaps?
        Large corporations or governments would be crazy to switch horse now, especially since RIM has announced that BES will be able to provision all sorts of non-RIM hardware.
        Small biz owners on BES won’t stay faithful for too long I think, if they can find cheaper alternatives. They’ll take their chances when it comes to security.
        I’d imagine that people on BIS and with a Curve would be pretty happy with the new line or even the entry level Bold. They just need a keyboard, BBM and a few apps.
        The fanboys will never listen and will hold on to their passé smartphones, waiting for the miracle that may not happen next year…
        That leaves the rest of the users. Some are sensible and get the best tool for the job, no matter which logo it sports and some go for shiny objects. I guess ads, but more importantly well trained sales agent could help keep some of these users, but I really think it depends on the progress made by Apple and Google.

        • agreed!! whoa we are on the same page today ofutur!!

          Yes.. ads can only distort for so long.. lol… for Apple it has been going on for 4 years… ZING!!!!!

          anyways..

          RIM has the money to burn, so, let them burn it. … it can only help

          as I have been saying, RIM needs to maintain as much marketshare as possible leading into the BB10 launch.

          Free phones, constant advertising, cheap Playbooks. It will only help

          • I think Apple has 2 advantages:
            – It’s the perfect entry level device for someone new to smartphones, especially for people switching from Symbian. BB OS can be overwhelming and you only fully appreciate it once you’ve learned a few tricks. The opposite is true on iOS. You’re really happy at first and once you’re a more advanced smartphone user, you get frustrated due to all the limitations imposed by the OS.
            – Apple has retail stores. I don’t think RIM can compete there as it wouldn’t be a good strategy for them to open retail stores.

            • 100% agree

            • I think everyone will be surprised at how well Nokia is going to do. Truth is Android phones are cheaply made. Nokia knows how to make a good phone. I think if you don’t want an iPhone the top choice will soon be Nokia.

              Also windows 8 will have Metro UI and so many people will get used to the metro UI interface. It takes microsoft several iterations to get things right, they’ve tried a long time with phones and I’ve heard good things about mango.

  5. The crazy thing is why are they just talking about advertising now?? I can sort of understand why they didn’t market the playbook – it wasn’t finished…. but they made a HUGE mistake in not selling it for like $300.

    You have to say they really blundered the Playbook. Also the Bold is still too expensive. It’s a great phone but is lacking in some key stuff consumers want, so the optimal action is to CUT THE PRICE! They should have done this before.

    • The Playbook thing is hard to pinpoint. They could seriously have been taken off guard by the OS delays.

      As for the Bold pricing… that is up to the carriers.

      NOW

      What will be interesting is if Blackberry does with their phones what they are doing with the Playbook

      Imagine a 9900 for 50 bucks or less… a free 9810 or 9850….

      That WILL inspire sellthrough.

      Will Blackberry make money? No…. but they will maintain marketshare

      2012 will NOT be about making money for RIM.. it will be about setting a foundation for the future.

      They need to maintain marketshare as much as they can

      Overseas and Canada will keep them in a healthy financial position

    • I’m with you on the price of the 9900 :)

  6. I now feel I made a good decision when I bought my 9900. =)

  7. Smh :(

  8. That’s a pretty cool campaign
    http://www.youtube.com/watch?v=SX2Gd-kqV5s
    Too bad they don’t have a phone as security as the Lumia…

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