RIM which has been completely blindsided by the Apple iPhone and Google’s Android in the last couple years, is in very dire straits. Its market share in the U.S. market is dropping and its stock is getting hammered every day. It’s currently near its 52 week low, at around $25.
Its dual executive arrangement isn’t working at all, and none of its recent products have managed to attract consumers. The Blackberry Playbook is officially a failure and even its lineup of new Blackberry devices doesn’t really seem impressive.
The only saving grace for RIM has been Blackberry usage in corporates, but even that has been dropping gradually.
Today, RIM announced that it would be laying off about 2000 workers, or about 11 percent of its total workforce. It has also shuffled responsibilities among a few executives and announced a few high profile departures. It commented that it would be explaining the exact reasons for the job cuts during its second quarter results on September 15.
The old guard in the smartphone industry (Nokia and RIM) is under attack by the new entrants (Apple and Android). Nokia is cozying up with Microsoft, hoping that Windows Phone 7 will be the panacea for all its problems. RIM has migrated almost all its new devices to the QNX platform, but none of those moves seem to be working so far.