RIM going the way of Nokia …

By • Jul 29th, 2011 • Category: Blog

Sadly, Research in Motion just announced that it will lay off 2,000 employees, or roughly 10% of its work force.

These layoffs don’t come as a surprise. RIM has been struggling against eroding market share from increasingly popular Android And Apple handsets. With “BYOD” becoming a major trend in business communications, and with better security in Android and Apple handsets, BlackBerry handsets are no longer the only viable game in town when it comes to business-class smartphone devices.

This has been years in the making, RIM can’t compete with other device manufacturers in terms of price and innovation. Competitors like Samsung and Fujitsu can create mobile handsets far cheaper, and are releasing new models with better features at a faster pace that RIM can. The magic bullet of RIM’s BlackBerry smartphones, its native encryption and BlackBerry Messenger (BBM), are no longer sufficient to keep a hold on enterprise customers, which are RIM’s bread and butter. RIM needs to completely revise its business strategy away from manufacturing devices (something it has done fairly poorly lately), and refocus on its software and service business which is where it still excels with encryption and BBM messaging.

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