Exclusive Look Inside RIM: Rise and Fall of the BlackBerry?

  • In the wake of recent negative press and pleas to management made public, BGR interviewed “multiple” ex-RIM executives and learned stories about the company’s overall “lack of vision and leadership.”
  • The two CEOs, Jim Balsillie and Mike Lazaridis, are described as brilliant “irreplaceable leaders” who unfortunately did not listen to the marketplace over time. (For example: “There will never be a BlackBerry with an MP3 player or camera.”)
  • One significant problem involved the three-year roadmap that focused on refining technologies on existing phones, not on identifying or shaping future trends.
  • For example, one executive claimed RIM was proud of how LITTLE data a user would use so there was no R&D done on browsers.
  • Another claim suggests RIM views carriers, rather than the end users, as the customers.
  • In the tablet realm, execs claim the PlayBook was sold to carriers below margin and is not making RIM any money. Moreover, RIM did not reveal that the PlayBook would not have native email until the last minute. “RIM is notorious for dropping these bombshells at the 11th hour on the carriers, and the PlayBook not having native email was a shock to the carriers.”

Google Misses Out on Nortel Patent Portfolio

  • Google missed out on the $4.5 billion auction for Nortel’s patents, losing to a consortium made up of Apple, Microsoft, EMC, Ericsson, RIM, and Sony.
  • Google’s loss of the patent portfolio puts its Android platform at a disadvantage, and the company will not have access to over 6,000 patents covering a range of technologies.
  • It has been reported that Google may respond with a Restraint of Trade suit in an attempt to force the consortium to license some or all of the patents.
  • The consortium’s participants will likely take key patents for their own use. For example, Apple’s $2 billion may give it ownership of Nortel’s LTE (4G) patents.

Senior RIM Exec Submits Open Letter to BlackBerry Management

  • An open letter to Research In Motion senior management reportedly written by a “high-level RIM employee” gives a frank description of what’s wrong and makes startling recommendations.
  • The letter starts with: “I have lost confidence.”
  • It suggests there is a need to focus on the end user instead of strategic alignments, partner requests or legal advice.
  • It also recommends focusing on a few projects as Apple had to do when Jobs returned — and calls for a “new, fresh thinking, experienced CEO.”
  • Developers, not carriers will “make or break us.” Also, reach out and get input from the employees.

PlayBook Outsells Motorola Xoom in its First Month

Research In Motion has had an interesting month. ETCentric’s story submission stream has featured a number of PlayBook-related stories in recent weeks… from the tablet’s weak initial launch — to the unfortunate recall of 1,000 units due to faulty operating systems — to the news that it had surprisingly sold 250,000 units during its first month of availability. In fact, despite mixed reviews and April’s slow launch, RIM’s PlayBook managed to outsell the Motorola Xoom in its first month.

In April, initial reports indicated a disappointing launch, with many units reportedly remaining on shelves during the first days of availability. Many reports credited the ongoing success of Apple’s iPad and the current lack of apps made for the PlayBook. Reuters reported: “RIM, which has priced the PlayBook to match the iPad, has struggled to win consumer fans since Apple’s iPhone and a slew of devices running Google’s Android entered the smartphone fray.”

Less than one month later, reports circulated that RIM had recalled approximately 1,000 units that were shipped with what the Wall Street Journal described as, “faulty operating systems which may have prevented users from performing the initial setup of the device.” The recall fell on the heels of RIM issuing a first-quarter profit warning, after citing lower-than-expected BlackBerry sales.

Yet not all news was negative. By the third week of May, RBC Capital Markets reported that the PlayBook had sold 250,000 units in its first month (it took Motorola’s Xoom two months to reach the same numbers). If the pace of PlayBook sales remains consistent, RIM will sell over 2 million units this year (slightly less than most analysts’ sales estimates for the tablet).

Of course, these numbers don’t come close to iPad sales, so the question remains: Is there a current tablet that is ready to compete with Apple’s iPad (at least in the near term)?

Related Reuters article: “RIM launches PlayBook but fans don’t play along” (4/19/11)

Related Wall Street Journal article: “RIM Recalls 1,000 PlayBook Tablets” (5/16/11)

Related BGR Media post: “250,000 BlackBerry PlayBook tablets sold to date, RBC says” (5/18/11)

Related Wired review: “BlackBerry PlayBook Tablet Lacks All the Right Moves” (4/13/11)

Related CNET review: “BlackBerry PlayBook review: A great surprise” (4/13/11)

Related SmartBlog post: “Will PlayBook play nice in the cloud?” (5/23/11)

Walt Mossberg Reviews New G-Slate Honeycomb Tablet

The new G-Slate tablet from LG (sold by T-Mobile) was launched last week as the first tablet in the U.S. using Google’s Honeycomb software (Android 3.0 for tablets) to offer 4G speed and 3D video. With an 8.9-inch screen, the G-Slate offers less viewing area than Apple’s iPad 2 and the Motorola Xoom, but more than the Samsung Galaxy Tab and RIM’s BlackBerry PlayBook.

The greatest challenges for the new device may be how to compete with the highly successful iPad — and how to differentiate itself from the other Android-based devices currently on the market. In his WSJ “All Things Digital” column, Walt Mossberg suggests that the G-Slate aims to be different in three major ways: by offering 4G cellular data speeds, enabling 3D video creation and viewing, and featuring an “in-between” screen size as compared to current offerings.

In his review, Mossberg found the performance to be on par with the Honeycomb Xoom, but overall not as good a choice as the iPad 2 (especially in terms of price, size and weight). And regarding the 3D functionality, he writes, “The 3D feature, which requires the use of 1950s-style colored glasses, seems like a parlor trick to me.”

Mossberg reports that the biggest selling point of the G-Slate is the 4G speed, but adds that the current problem with all Honeycomb devices involves a lack of “tablet-optimized third-party apps.” It’s tough to compete with Apple in this regard, considering it already claims 65,000 tablet apps.

Mossberg’s bottom line: “The G-Slate isn’t as good a tablet as the iPad 2. I’d only recommend it for people who want the higher cellular speeds, or who prefer Android.”