RIM's BlackBerry 10 Service Plans Should Be No Secret to Investors
NEWS ANALYSIS: RIM announcement of upcoming changes in services fees was a surprise to investors and thus caused the stock to drop, even as company revenues and cash continue to grow.If there is one thing that investors hate more than nearly anything else it is a surprise. In fact, investors, and their joined-at-the-hip financial analysts apparently hate surprises even more than taxes, the Fiscal Cliff or boardroom fraud. So when RIM CEO Thorsten Heins told investors on a conference call that RIM planned to change the way it charges for its data services, they freaked out. The reason they freaked out is that the BlackBerry maker didn’t tell anyone that this news was coming. RIM earns a significant share of its revenue by charging carriers for the use of its network to support BlackBerry devices. Changing this could mean that RIMs revenues could drop, which is a possibility that Heins mentioned in his conference call. The reason investors were surprised by this is because they haven’t been paying attention to what RIM has been doing for the last couple of years. Of course the big news for RIM is that revenue was up, losses were less than analysts predicted and the company has more cash on hand than it has had in years. This sounds like good news, although the BlackBerry subscriber base is off a little according to the financial report. On top of this, BlackBerry 10 is apparently still on track for a January launch with devices showing up, reportedly in March.
Meanwhile, Heins has said repeatedly that RIM is going to be offering a new bunch of services including cross-platform support so that you can manage more than just BlackBerry devices with BlackBerry Enterprise Server. Heins has also said that the company plans to offer new services beyond what is being offered now, notably advanced security services.