My Thoughts on Technology and Jamaica: RIM filing for Chapter 11 Bankruptcy - The Last of the Mohicans Blackberry as Android Borne Supremacy Worldwide Continues

Friday, June 8, 2012

RIM filing for Chapter 11 Bankruptcy - The Last of the Mohicans Blackberry as Android Borne Supremacy Worldwide Continues

25 “This is the inscription that was written: mene, mene, tekel, parsin
26 “Here is what these words mean: Mene[e]: God has numbered the days of your reign and brought it to an end.
27 Tekel[f]: You have been weighed on the scales and found wanting.
28 Peres[g]: Your kingdom is divided and given to the Medes and Persians.”
29 Then at Belshazzar’s command, Daniel was clothed in purple, a gold chain was placed around his neck, and he was proclaimed the third highest ruler in the kingdom.

Daniel 5 vs 25 to 29, New International Version

RIM has fallen folks as reported in the GigaOM Article “RIM faces Q1 loss, shares halted as future is murky”, published May 29, 2012 By Kevin C. Tofel, GigaOM.

No sooner had I done a blog article on the ailing fortunes of RIM (Research in Motions) Blackberry and the shifting preference among Jamaicans towards smartphones for their second purchase as per my blog article entitled “Blackberry popularity wanes as Jamaicans go smartphones - Android and Apple's Smartphone Revolution” that more dire news has come to my ears.

Thus it explains the trend was towards Jamaican going towards smartphones such as the Apple iPhone and Google Android as their phone of choice when upgrading a couple days prior as stated in Jamaican loyalty to BlackBerry wanes”, published Sunday May 20, 2012 by Steven Jackson, Business Reporter, The Jamaica Gleaner.

Not to mention RIM's Regional Director for the Caribbean, Sean Killien trying to sound upbeat in the face of the obviously negative news coming out of Toronto Canada headquartered RIM as stated in the article “BlackBerry Maker Cites Natural Competition For Dip In Market Share”, published Wednesday June 6, 2012 by Steven Jackson, Business Reporter, The Jamaica Gleaner.

New Blackberry Curves and Blackberry Bolds, the possible launch of Blackberry OS 10 (finally!! A little too late I fear…) and playing off the Jamaican decline as a part of a natural cycle will not cut it; Blackberry usage is now for the first time seeing a decline mirroring our Northerly Neighbor the United States of America.

Jamaica in essence, is catching a good cold; Smartphone fever!

RIM had been struggling since June 2011AD when at the time, it reported its First Quarter of 2011AD Earnings, which had a bleak forecast projection due to the growing switch to Apple iPhones and Google Android phones as stated in the article “RIM pleads for more patience as transition takes its toll”, published June 16, 2011, 4:06pm PT, By Ryan Kim, GigaOM

RIM at one point even had to temporarily suspend the trading of its shares on the NYSE (New York Stock Exchange). This is serious folks!!! They are losing so much money that further trading would possibly have sunk their shares so low to the point of being a junk bond. Currently since February 2012AD, they’ve been functioning at a loss of 2% of their total value.

There is now the increased likelihood of being delisted as well as their company being liquidated to pay of investors as suggested by the numbers in the article “The numbers behind RIM's impending collapse”, published May 30, 2012 6:47 AM PDT by Zack Whittaker, CNET News.

The graph above, paired with the below statistics, explains what is playing out currently on the NYSE and gives deeper insight into RIM’s troubles.

A company that in May 2011AD it traded at US$70 on the NYSE on Tuesday 29th , 2012 has now seen its share price has dipped as low as US$11.23 a share even going as low as US$10.57.

RIM shares have been down by more than 75% the past twelve (12) months and continue to slowly drop. It’s currently worth US$5.2 billion dollars, down from US$78 billion dollars, a 90% loss of value. After the Fourth Quarter of 2011AD, their liquid cash base was at US$2.1 billion.

In essence, dear reader, they are bankrupt…and the vultures are circling!!!! Interestingly enough, I predicted this as far back as January 2012AD. RIM in a bid to remain solvent, plans to lay off six thousand (6,000) member of its global staff, which represents 1/3 of an estimated 78,000 worldwide later in the Second Quarter of 2012AD as stated in the article “RIM layoffs: BlackBerry 10 all in, or get out?”, published May 28, 2012, 1:36am PDT By Zack Whittaker, ZDNET .

RIM will be effectively sold off whole, as the Data Infrastructure Network and the Mobile Phone Sales cannot work without each other. Blackberry Loyalty remains strong, despite the Great Blackberry Outage of 2011AD as stated in the article “BlackBerry outage hits Jamaica”, published 2011-10-12 10:54:19, Go-Jamaica and the article BlackBerry blackout spreads to Caribbean”, published Sunday, October 16, 2011 by PAUL ALLEN Business reporter The Jamaica Observer.

In the US and Globally, the trend as noted in my blog article entitled Nokia + Microsoft vs HP Web OS - Gartner's Ocean's Eleven Plan to Rob the Casino” and “Apple + Android beat Nokia + RIM Globally - Regina Beaver's La Dolce Vitais that Google Android OS has been stomping the yard!!!

In a continuation of the observations in my blog article entitled “Blackberry popularity wanes as Jamaicans go smartphones - Android and Apple's Smartphone Revolution”, it’s obvious that like HP Palm, RIM (Research in Motion) was distracted by the Tablet Wars.

A War in which most of the casualties thus far did not fully understand Tablets, thinking the Apple iPad a mere toy as stated in the article The tablet jinx took down Palm and RIM. Who's next?”, published May 30, 2012 8:34 AM PDT by Jason Hiner, CNET News.

Smartphones are now officially 50%  mobile phone market in the US of A according to statistician Nielsen latest results up to February 2012AD as stated in the article “Smartphones now account for half of all mobile phones”, published March 29, 2012 2:23 PM PDT by Scott Webster, CNET News.

Of that now lucrative smartphone market, 50% is owned by Google Android this time thanks to the stats of Analyst ComScore as stated in the article “Android now represents half of U.S. smartphone market”, published April 3, 2012 11:19 AM PDT by Lance Whitney, CNET News and Android still dominates U.S. smartphone market”, published by June 1, 2012 2:06 PM PDT by Steven Musil, CNET News.

In a hurried and obviously troubled Press Release on Thursday June 28th 2012, RIM CEO and President Thorsten Heins, who has ben CEO from January 2012AD appeared to be grasping at straws, quote: “We are continuing to be aggressive as we compete for our customers’ business – both enterprise and consumer – around the world, and our teams are working hard to provide cost-competitive, feature-rich solutions to our global customer base.  On the positive side, we expect to further increase our cash position in Q1 from the approximately $2.1 billion we had at the end of fiscal 2012.”

RIM has scheduled what is the equivalent of an emergency AGM (Annual General Meeting) for its shareholders on Thursday June 28th 2012 and is still in consultation with its Securities J.P. Morgan Securities LLC and RBC Capital Markets as it begins what is effectively the beginning of a filing with the SEC (Security and Exchanges Commission) for Chapter 11 Bankruptcy.

This also suggested by the tone of RIM CEO and President Thorsten Heins statements, quote: “These advisors have been tasked to help us with the strategic review we referenced on our year-end financial results conference call and to evaluate the relative merits and feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives.”

So how’s the future for RIM, now a vassal state and The Last of the Mohicans (1992) shaping up?

After Chapter 11 Bankruptcy, there is little RIM can do. Its patents are the most valuable thing it has. Its sale will be as one unit, with both Data Infrastructure Network and the Mobile Phone Sales going to either Google or Apple. This is of course after a fierce bidding war with such Tech Giants as Nokia, Microsoft, Siemens and possibly even Ericsson. All interested in its Patents and worldwide faithful 78 million strong user base.

Whomever wins will assume the role of Bourne Supremacy (2004) over their popular IM (Instant Messaging) Network and thus have the opportunity to once and for all, standardize IM globally as stated in my blog article entitled “Apple iPhone 4S and Apple iMessage - Timeline for Standardization of Instant Messaging”.

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