Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM) is failing to succeed in a market they once dominated. And just when it appeared that things couldn’t get much worse for the company, we find out that one of the former key markets for the Blackberry maker is struggling with their own economic woes, which in turn, will pose a negative impact on the company. Could India’ s poorly performing economy prove fatal for RIM? One report recently indicated that RIM’s sales in India declined by 25%. Despite the country’s poor economic situation, Samsung’s sales grew by an impressive 38%. Perhaps a new attitude towards a more cost-conscience consumer mindset has emerged. People are purchasing technology products that, although they may cost more up front, will save them more money in the long run. Savvy shoppers are more likely to spend a little extra on something they know works well and lasts.
But that’s not all. RIM has been inundated with numerous lawsuits in the last few years, with the most recent being a patent right infringement accusation from Mformation Technologies.
The jury made the final decision on Friday, that RIM is forced to cough up $147.2 million. The lawsuit originally started in 2008, when Mformation cornered Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM) in a lawsuit over two infringed patents, after they had been informed such technology existed. The company claimed that RIM did not get the technology licensed, but instead modified their software to include the technology.
Blackberry has made an official statement regarding the recent lawsuit. The company claims that they’ve worked hard to develop their Blackberry software and products independently, and they don’t believe the patent accusations in question are valid.
The future of RIM is bleak. It was recently reported that the Blackberry maker, along with other poorly performing smartphone makers HTC and Nokia, will continue to see a significant decline in phone sales. The chief executive officer of RIM, Thorstein Heins, isn’t providing the company with what it needs, despite the fact he admits that he worries about the future of his company.
It’s sad to see that Research In Motion may not be around in a year or two, however, it’s important to point out they ‘ve reaped what they’ve sown. Maybe if they had changed their business structure and paid more attention to their top competitors(Apple and Samsung), they would actually have a leg to stand on. Consumers expect and demand a lot, and if you fail to meet those demands, you can expect to underperform. Sadly, I think it’s really too late for RIM.