Michael Mace on What’s Wrong With RIM

I can’t recommend this piece by Michael Mace strongly enough. It’s a detailed, cogent analysis of what’s wrong with RIM, based on a close reading of the details of their financial disclosures. It’s a strong case for how a company with growing revenue and growing profits could in fact be in big trouble. One small example:

Five years ago, RIM was getting .7 new subscribers for every BlackBerry sold. In other words, most of its sales were to new users. Today, RIM is getting .37 more subscribers per BlackBerry sold, and that figure is at an all-time low. To put it another way, RIM now has to sell more than two and a half devices to get one more subscriber. Either RIM is selling most of its units to its installed base, or it is having to bring in a lot of new customers to replace those who are leaving for other devices. My guess is it’s a mix of both.


Saturday, 11 December 2010