One of our RIM analyst friends @SurrelCivic has been preaching that RIM would drop its hardware division ever since word came out that RIM was losing big money in it. His belief looks look like it might be coming to fruition as The Sunday Times is now reporting that RIM is considering to split its business. Last month, RIM hired JP Morgan and RBC Capital to look at its strategic options, and now ... »
It is no surprise that Research In Motion has been struggling lately. Word on the street suggest RIM has been losing money in the hardware sector. Evidence of this seems to be emerging as the Toronto-based OEM Celestica has called it quits as one of RIM’s hardware partners. Don’t fret just yet, as RIM likely has many other hardware partners, but it isn’t clear how Celestica’... »
RIM stated in their annual filing to US regulators that gross margins on such hardware items fell to 20 percent in the fiscal year that ended in early March from 36 percent a year earlier. Jefferies analyst, Peter Misek, has calculated in a note to clients that after assigning operating costs and including inventory charges, the hardware division likely spent 4% more than it took in. RIM has writt... »
