According to FoxNews, Research in Motion, the company that makes BlackBerry devices, has announced that it is stepping away from the high-end consumer market to focus on business and low-end consumers.

The announcement comes after Jim Balsillie, co-CEO and one of the creators of Research in Motion, resigned from his position and left the company. The Toronto Star reports that Research in Motion has seen falling profits as its products lag behind those of Apple and devices running the Android OS. Apple sold 37 million iPhones in the last quarter of 2011, more units than RIM shipped in the three previous quarters.

BlackBerry Mobile Phone - Research in Motion

The BlackBerry Playbook, Research in Motion’s tablet, was a massive failure for the company. According to Mashable.com, less than eight months after its release, it was selling for $200. Not only was the price less than its entry price of $500, but it was less than the cost to produce the unit being sold.

New Research in Motion CEO Thorsten Heins says, “We can’t do everything ourselves, but we can do what we’re good at.” He indicates that a major change is necessary for the company to thrive, The Kansas City Star reported. This is a change from his position when he started as CEO in January of 2011. According to him, a drastic strategy change was not necessary then.

Heins is optimistic about the future of the company because they still have a strong hold on the business market. BlackBerry products are known for security and reliability. Many businesses purchase them for employees to ensure that email comes through without any delays, according to Businessweek.com. This does not, however, mean Heins is putting all his eggs in one basket. He has indicated that he would consider selling the company, but that it isn’t his main direction at this time.


Tags: blackberry, Blackberry Playbook, Jim Balsillie, RIM, strategic change of research in motion, strategy change of rim

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