Monday, July 25, 2011

RIM lays off 2,000. Investors get what they want.

You never want to hear news like this, so this isn't a happy way to start the week.

But it is what it is. And as BlackBerry (and PlayBook) maker Research In Motion, the once do-no-wrong Canadian success story that virtually created the modern smartphone market, now faces the sobering reality of retrenching - oops, they call it "streamlining" - operations while competitors continue to expand, we're left wondering what comes next. We're also left wondering whether the company will continue to fight for market dominance, or simply narrow its focus on smaller market niches.

Lots of reasons for this, all of which I've discussed and written about at length in recent months. And will continue to do so in the days and weeks ahead. But the thing that sticks in my mind as the news begins to sink in is this: Investors will doubtless be pleased that the company is tightening expenses during . But like petulant children who whine to their parents until they give in, they may get what they want in the near term at the expense of what they need over the long haul.

It's a wants vs. needs thing, and I'm not convinced the investors' clamoring for this appreciate the long-term implications. Or whether they even care about them - and the affected people - at all.

Your turn: Thoughts?


Kavi said...

This is sad, and i think it is a bridgehead into whats coming. i quite like the technology and the phones !

The actions of a few, affect the lives of many. When the going goes good. And when the going goes bad !

Anonymous said...

Carmi: I just watched the London evening news, and I thought I should alert you to what I saw. There was a dishevelled homeless person impersonating you on the broadcast. Or it could have been a man on vacation rousted from the peaceful solitude of a backyard to do a live interview.