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.