RIM May Need To Write Off $1 Billion In Inventory

benfrog writes "Blackberry maker Research in Motion may need to write off more than $1 billion in inventory, according to Bloomberg. The potential 'writedown' comes after RIM took a $485 million pretax charge to write down the value of its PlayBook inventory in December. RIM has said it aims to save $1 billion in operating costs this fiscal year by cutting its number of manufacturing sites and is 'reviewing its organizational efficiency' across the company, which may lead to job cuts of 2,000-3,000. Its shares have tumbled 75 percent over the past year and are down 90 percent from their all-time high."

Comments

HP should buy them

[Enderandrew]

HP is convinced they need to embrace the 'post-PC' world. They could actually salvage part of their 2 billion investment of Palm and Web OS. BB has a terrible platform right now and is dying, but they have a great brand name, and some great apps. Their mobile email client is absolutely the best.

If HP was smart, they'd reach out to Google to help develop Android phones and tablets with some Web OS influence (some great UI concepts actually) and a BB email client. Honestly, wouldn't that be a legit Apple killer than enterprise shops would embrace en-masse?

Re:What's With All The RIM Hate?

[MadCow42]

RUFKM?

Do you even have a current BB phone? I do, and I hate it with a passion, but I'm stuck with it because it's all my company supports for corporate email.

Battery life? half a day if I'm lucky.

Usability? It freezes for minutes at a time.

Apps? Really? Have you compared to any other platform like Android or iOS?

Talk about astroturfing... you're doing it pretty well.

(no, I have no affiliation with RIM whatsoever, besides being hampered by having one of their crappy devices - the 9960)

Re:What's With All The RIM Hate?

[PCM2]

I don't hate RIM. But I do think RIM is dying. The disease is reversible, I think, but nobody over there seems to be seriously looking for a cure. TFS says RIM stock is down 75 percent from last year alone. Imagine a patient who has lost 75 percent of his body weight but keeps insisting, "I'm not sick!"

My own experience: My last three phones before my current one were BlackBerrys. But I started looking around and comparing prices and it seemed to me that other phones could provide at least most of the functionality that my BlackBerry gave me, plus more besides. I also wasn't impressed with the hardware of the current crop of BlackBerry devices. It seemed like RIM's focus had drifted from its core business market and it was trying to sell camera phones to college students. They didn't seem like they were targeting me anymore, and other manufacturers were. So I switched to Android.

I'd be more than happy to switch back to BlackBerry if they'd show me a really great phone, though. Do they have something like that in the works? I don't see it. The market doesn't seem to see it, either.

You know who you remind me of? Me, when I was a Mac OS admin in the late 90s. Back then, everybody thought Mac users were a cult. We were all convinced our platform was the best, but everybody else kept focusing on how Gil Amelio had fucked up a once-great company. We Mac fans were right, but so was everybody else. It took Steve Jobs' return to get Apple back on track. Unfortunately, I don't think RIM has a Steve Jobs.

TERRIBLE writeup

[Scareduck]

From TFA:

The value of the company’s inventory climbed to $1.03 billion last quarter, up from $618 million a year earlier. Back in mid-2008, when the BlackBerry was still a hot seller and RIM’s stock traded at an all-time high of $147.55, the figure was less than $500 million.

Nowhere in that article does it suggest that 100% of the current inventory will have to be written off. A terrible writeup from someone who clearly has reading comprehension problems.

Re:Not Surprising

[mwvdlee]

Here in the Netherlands (and as I understand it, most of Europe atleast), WhatsApp is the current chat method, and it's available on most mobile platforms, including BB. It's still proprietary, but atleast it's practically platform agnostic.