RIM refutes letter-writing rabble rouser
NEW MEDIA TRENDS' Christopher Lacroix reports
Research in Motion is reacting to an anonymous letter apparently sent by an employee to the news media with an open letter of its own. The gist of the two-paragraph response is, thanks but we know what we're doing:
The company is thankfully in a solid business and financial position to tackle the opportunities ahead with a solid balance sheet (nearly $3 billion in cash and no debt), strong profitability (RIM’s net income last quarter was $695 million) and substantial international growth (international revenue in Q1 grew 67% over the same quarter last year). In fact, while growth has slowed in the US, RIM still shipped 13.2 million BlackBerry smartphones last quarter (which is about 100 smartphones per minute, 24 hours per day) and RIM is more committed than ever to serving its loyal customers and partners around the world.-B
The employee's letter was submitted to a website because, as it reveals, RIM's is a culture that effectively discourages criticism. It urges CEO's Mike Lazaridis and Jim Balsillie to consider eight points:
Focus on the end-user experience
Recruit senior SW leaders and enable decision making
Developers, not carriers, can now make or break (RIM)
There's a need for a serious marketing punch to create end-user desire
There's no accountability - Canadian are too nice
The press and analysts are pissing you off. Don't snap. Now is the time for humility with a dash of paranoia
Democratise. Engage and interact with your employees -- please!
On that first point, the letter praises Apple. It slams the company for not obsessing over the end user with an iPhone-like device. The writer even goes so far as to suggest that executives use iPhones at work:
We should encourage key decision makers across the board to use these products as their primary device for a week or so at a time — yes, on Exchange! This way we can understand why our users are switching and get inspiration as to how we can build our next-gen products even better! It’s incomprehensible that our top software engineers and executives aren’t using or deeply familiar with our competitor’s products.-B
The letter also states that recent public scrutiny over the company's dual-CEO structure is warranted. Major shareholders have demanded the roll be split atwain.
RIM announced hours later that investors have retracted their demands that executive appointments should be restructured. Instead, RIM announced a deal, in which it would set up a committee to examine the structure and advise it on what to do.
The company continues to fight a major legal battle over allegations RIM (along with Apple) violated Kodak patents. That battle is being extended until Aug. 30 while the International Trade Commission considers changes made to the claims.
RIM, which trades on the Toronto Stock Exchange, closed June 30 before the long weekend at 27.88, down 0.02 (0.07 percent).
The response - Blackberry: http://goo.gl/cw3rF
The letter - BGR: http://goo.gl/sJ3pP Cnet: http://goo.gl/0jTif
Cnet: http://goo.gl/pm6t6
