BlackBerry maker bails from consumer markets
(CBS/AP) TORONTO - Struggling BlackBerry maker Research in Motion (RIM) says it will cede most consumer markets and focus on business customers.
RIM has been struggling amid growing competition from Apple's (AAPL) iPhone and various devices running Google's (GOOG) Android software. It has been popular among business customers and has been trying to enter consumer markets in recent years with limited success.
"We plan to refocus on the enterprise business and capitalize on our leading position in this segment," CEO Thorsten Heins said. "We believe that BlackBerry cannot succeed if we tried to be everybody's darling and all things to all people. Therefore, we plan to build on our strength."
On CNET: RIM's Heins follows turnaround playbook, doubles down on enterprise
A look at troubles for BlackBerry and its maker
BlackBerry apps more lucrative than iPhone?
Also Thursday, RIM said former co-CEO Jim Balsillie has resigned from its board. David Yach, chief technology officer for software, and Jim Rowan, chief operating officer for global operations, also are leaving in a management shakeup.
Heins made the remarks during a conference call after RIM announced quarterly results that fell short of Wall Street expectations.
RIM said it had a net loss in the latest quarter because of writedowns for the declining value of its brand and its PlayBook tablet inventory. Net loss was $125 million, or 24 cents a share, in the quarter that ended March 3. This compares with $934 million, or $1.78 per share, a year ago.
Adjusted income was 80 cents per share, a penny short of expectations from analysts polled by FactSet. Revenue fell 25 percent to $4.2 billion from $5.6 billion. Analysts were expecting $4.54 billion.
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