He reportedly also called the BlackBerry handsets currently
on shelves a bit "long in the tooth"—a situation not likely to
change soon, according to analysts with investment banking group Jefferies.
"We believe the majority of OS 7 devices have been
delayed from August to October as integration, polishing, and carrier
certification are taking longer than expected (e.g., in a recent interview FT's
CEO noted regular bugs with RIM devices and quality problems with RIM's
next-gen devices)," states a multi-author May 27 research note. "We
believe this is causing delays in other product launches, notably the 3G/4G
PlayBook and QNX based handsets, which are now more likely in the [second half
of 2012] vs. guidance of early [2012]."
The Jefferies analysts added that RIM management will have
to either "accept lower margins or lower unit sales."
Allegedly unrealistic expectations from RIM management are also the source of a new lawsuit against the company, Reuters reported
May 27, adding that RIM officials believe
the case is without merit and it plans to "vigorously defend" itself.
The suit claims that RIM knew that product delays and
lukewarm launches would hurt earnings, but kept this from investors.
"Specifically, the company failed to inform investors
that its aging product line and inability to introduce new products to the
market was negatively impacting the company's business and margins," the
suit states, according to the report.
The claims cover a period from December 2010 through April,
when the company lowered forecasts for its upcoming quarter.
"Earnings per share for the first quarter are expected
to be in the range of $1.47-$1.55 per share diluted," RIM announced March
24. "This guidance reflects a mix shift in handset towards lower ASP
products in the first quarter and an increased level of investment in Research
& Development and Sales and Marketing related to our tablet and platform
initiatives."
During an
earnings call that same day, to share the results of the company's fiscal 2011 fourth
quarter, RIM co-CEO Jim Balsillie justified—to stick with the analogy—all the eggs in the PlayBook basket.
"We're investing in opening up a new category, bringing
in a new platform. This is no time for half measures," he said on the
call. "This is a time of enormous investment and transition."
While RIM wouldn't offer guidance on its PlayBook shipment
expectations, RIM Vice President of Investor Relations Adele Ebbs told an
analyst who pressed, "We said, like, 20,000 retail outlets. They're not
going to have like one or two devices. So I think you can kind of see it's not
going to be in the tens of thousands."
Balsillie quickly added, "Many of our corporate clients
have approached us about each wanting tens of thousands of PlayBooks."
RIM's wanting handset lineup also isn't doing it any favors
with U.S. carriers, who according to the Jefferies note want to support three
main ecosystems—Apple's iOS, Android and a third that's still to be
determined.
"Unfortunately for RIM," said the Jefferies note,
"Windows is now being considered."
Enterprise Mobility News & Reviews 
