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RIM Shifts Blackberry Focus as Smartphone Profits Fall

Blackberry owners Research In Motion (RIM) announced today that they wouldn’t be pulling out of the public smartphone battle with rivals iPhone and Android but are instead “refocusing on the enterprise business”.

Update from the Research In Motion Twitter page:

“Rest assured, #TeamBlackBerry, #RIM is still very committed to the consumer market.”

Seems like throwing in the towel to us.

Latest figures show that profits for Blackberry had fallen as much as 25% in the last 3 months alone sparking news that RIM could be looking to sell up.

In a conference call held last night which addressed a $125million loss, RIM chief executive Thorsten Heins said:

“We believe that BlackBerry cannot succeed if we try to be everybody’s darling and all things to all people,”

“Therefore, we plan to build on our strengths to go after targeted consumer segments. We will seek strong partnerships to deliver those consumer features and content that are not central to the BlackBerry-valuable position; for example, media-consumption applications.”

With the functionality of smartphones from the likes of Apple and Samsung increasing to the point where employers are allowing staff to you personal mobiles as work phones, there seems little place for the company Blackberry of old.

Although today’s announcement is seen as a withdrawal from the personal smartphone battle with iPhone and Android, RIM are keen to point out that the fight isn’t over just yet and they are still in the fight.

A Bad Year For RIM

2011 saw a few things go horribly wrong for RIM. First there was the BlackBerry outage lasting 3 days culminating with RIM founder Mike Lizaridis issuing a formal video apology. Then there was the BlackBerry Playbook… The tablet that was highly criticized for launching without an email application and failed to make any kind of dent in the tablet market.

And 2012 so far hasn’t been off to a flier either with profits taking a skydive, hence the need for the “refocus”. If you thought Nokia had problems, think again.