The first step to recovery is admitting you have a problem. Unfortunately, Research In Motion (NAS: RIMM) hasn't reached that stage in the recovery process quite yet -- it's still stuck in denial.
On a recent Canadian radio show recently, freshly minted CEO Thorsten Heins said, "There's nothing wrong with the company as it exists right now. I'm not talking about the company as I, kind of, took it over six months ago. I'm talking about the company [in the] state it's in right now."
This is what happens when you put a yes-man in charge at a time when you need dramatic changes to engineer a turnaround. If Heins can't even acknowledge that the company is in trouble, then how can investors have any hopes of him turning this ship around? It's not even at the first step of recovery! This may be the final piece of evidence, as if we needed any more, that RIM is hopelessly doomed, a victim of its own complacency in an industry where the pace borders on constant.
"This company is not ignoring the world out there, nor is it in a death spiral," Heins said on the show, "Yes, it is very, very challenged at the moment -- specifically in the U.S. market. The way I would describe it: we're in the middle of a transition. I'm positive we will emerge successfully from that transition."
In fact, I'd say that a death spiral is a fairly apt description of RIM's current predication, largely at the hands of Apple (NAS: AAPL) and Google (NAS: GOOG) . RIM's smartphone market share has fallen to just 6.9% in the first quarter, down from nearly 20% just three years ago. Meanwhile, iOS and Android combined gobble up nearly 80% of the market.
RIM has quite literally everything riding on a platform that is now delayed (again) until the first quarter of next year, and even then it will have no competitive advantage over iOS or Android, while numerous disadvantages.
Sorry, Heins, but there's plenty wrong with the company as it exists right now.
Even as a smartphone pioneer, RIM has missed out on the mobile revolution. Faster and stronger companies like Apple and Google have absolutely crushed them, which is why investors should spend their time focusing on them, versus what's most likely yesterday's news (cough ... RIMM). To get the scoop on Apple, you can check out The Fool's premium research report on the iEverything maker. Or to learn about another component play that's getting all kinds of help from the rise of smartphones, check out our smartphone free research report. Click here to learn more.
At the time thisarticle was published Fool contributorEvan Niuowns shares of Apple, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio. The Fool owns shares of Google. The Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of Apple and Google.Motley Fool newsletter serviceshave recommended creating a bull call spread position in Apple. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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