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January 30, 2012

RIM's Last Battle For Survival Starts with Leadership Change




RIM's co-CEOs Mike Lazaridis and Jim Balsillie, the men who engineered RIM's rise, resigned on Saturday after intense investor pressure. Their presence had been seen as a big obstacle to a possible sale of the company, although Heins insisted that was not an option he was considering.

The newly appointed RIM's CEO will have his work cut out for him. RIM's share of the U.S. smartphone market has dipped below 10% and has had a number of product delays.
The new CEO will have his work cut out for him. RIM's share of the U.S. smartphone market has dipped below 10% and has had a number of product delays.

R
IM's 
presence in the U.S. continues to erode, as Google Android-based devices and Apple's iPhone have taken the high end of the smartphone market, leaving the scraps for RIM.
RIM now has the lowest number of SKUs at US carriers since mid-2007," RBC analyst Mike Abramsky writes today. (SKUs are "stock keeping units," or number of phone models.

 
Top Mobile OEM Marketshare from 
April to July,2011  data for United States

Top Mobile OEMs
3 Month Avg. Ending Nov. 2011 vs. 3 Month Avg. Ending Aug. 2011
Total U.S. Mobile Subscribers (Smartphone & Non-Smartphone) Ages 13+
Source: comScore MobiLens
Share (%) of Mobile Subscribers
Aug-11Nov-11Point Change
Total Mobile Subscribers100.0%100.0%N/A
Samsung25.3%25.6%0.3
LG21.0%20.5%-0.5
Motorola14.0%13.7%-0.3
Apple9.8%11.2%1.4
RIM7.1%6.5%-0.6
Top Mobile OEMs Marketshare  August  to Nov, 2011 

Research in Motion CEO Thorsten Heins  does not  yet give the indication that it needs  to undergo radical change of strategy in order to gain lost Marketshare.The newly minted chief executive and company president told a teleconference audience that he never felt constrained in his previous roles at RIM to do the things he needed to do at the beleaguered Canadian tech company. “I don’t think there is a drastic change needed. We are evolving,” insisted Heins. He was willing to admit, though, that RIM needs to get better at “process discipline.”


Shareholders and analysts have grown impatient in recent months and calls for Lazaridis and Balsillie to step aside had reached a crescendo. RIM has lost market share and market value after being comprehensively outplayed by Silicon Valley tech giants Apple and Google.