Depending on your stance, it may seem odd or perfectly appropriate to talk about the misfortune of Research in Motion as we head into our national patriotic celebration known in its current politically correct, non-descript form - Canada Day.
This week, RIM presented its first quarter results. As reported by those who listened to the analyst call live, the even tones of CEO Thorsten Heins betrayed the panic that surely grips his company. Perhaps investors are showing their own emotions more openly as the stock is currently down $1.50 from yesterday's already low closing price of $9.13 per share.
Now you may argue that this is just one quarter and RIM reported a tidy profit only one short year ago. To my thinking, that is just a matter of when accounting was done or when the consumer electronics market finally caught up to them. Either way, Sam, watch out for that first step. It's a doozy!
Whether my guilt about piling on RIM is patriotic or through some other loyalty (I know people who work there), it's not easy to make these disparaging comments about the company. But it all depends if you define the company by all the people, or just a few at the top. Choosing the latter, I can get some sleep tonight.
One CNET editor noted that the shining example of all things good and financially healthy in technology - Apple - was once prematurely given up for dead. I have to agree that there are similarities. Apple computers and other gadgets have always enjoyed an extremely loyal following. In its darkest hour, it was only a few while today there are legions of loyal Apple consumers. Likewise, RIM's BlackBerry devices hold the devotion of fans of its physical keyboard. I've never used any RIM products, so I can't say what else people like. Security is often cited as another big advantage. But in one case, the continued support is for something my HP-15C calculator has, and in the other, a feature completely invisible to all but a handful of IT pros and security experts.
Unlike Apple, RIM will not be turned around by the reappearance of one of their founders. And why would the company want them back? Few doubt the vision of Apple's returning white knight. But while Steve Jobs worried about his legacy only once he knew his cancer was terminal (and at that by spending time with a biographer), RIM's one-time co-CEOs Mike Lazaridis and Jim Balsillie focused on their legacies from early days of financial success. History will judge RIM not in Apple-like terms, but like the many technology companies both before and after where the pure luck of timing a single product for the market led to an early wild success with profits soaring and making many early company participants (and outside investors) fabulously rich.
And the money seems to feed much more than the bank account for these companies that come and go. Most start-up founders seem to think they can predict the future and will have the right product ready for it. I don't know them personally, but I'm sure Lazaridis and Balsillie both believe they are visionary tech gurus. Both were focused on their legacies. One founded an institute for theoretical physics research while the other hoped to bring another NHL hockey franchise to southern Ontario. Actually, he more than hoped. Balisillie tried to bully his way in. You must have a pretty good impression of your influence if you think you can outmuscle the Toronto Maple Leafs' monopoly on hockey in Canada's big sports market.
But what has this diatribe got to do with technology, the actual hardware and software, the gadgets if you like? Well, if job cuts of 5,000 or nearly a third of its workforce to go along with tanking share prices are not enough to turn your stomach, RIM announced that the launch of the next iteration of BlackBerry handset will be delayed beyond the massive back-to-school and Christmas buying seasons until the vague
As a proud blogger, I think it's time to prognosticate. I think this handset delay boils down to indecision on the very physical keyboard that keeps BB fans coming back. There was obvious confusion given the messaging at BlackBerry World 2012 about whether the next generation of BB hardware would be touchscreen only or include the trusty physical keyboard. The prototypes provided to the app developers were infamously touchscreen with more than a suggestion of iPhone. I agree with Heins when he says it isn't quality issues holding the launch date. But what I think you should here when he says that difficulty integrating new features RIM engineers are working on is delaying the BB10 launch, I think a translation is in order. What they mean is that there is an internal debate about whether the new platform should be touchscreen or not. As the arguments rage on, so the launch date is pushed out. If RIM truly understood the desires of consumers, they would have made these decisions and would have the device ready for the dollars that burn through pockets from September to December. I think that holds whether or not you agree about the internal battles for and against the physical keyboard.
And yes, I'm saying RIM is strictly another one-trick pony. They have been busy milking their early success for the last several years. It's time for engineers to make their voices heard before it's too late. If arrogant exectuives don't listen, just get prepared for another pink slip. In the case of RIM, you were probably getting one soon anyway, just before the name "BlackBerry" is finally sold to HTC. If you're worried about your job, you can always become a blogger ;-)