RIM May Sell Off Their Hardware Business

Posted Jan 21, 2013

Thorsten Heins, the CEO of RIM, said in an interview with Die Welt that the company is seriously considering the sale of their hardware production business after the BlackBerry 10 operating system is launched.  This is not surprising because RIM has been talking about licensing their software as far back as August 2012.  In the interview, Heins said ?Before you license the software, you must show that the platform has a large potential.?  Heins believes that BlackBerry 10 will be “future-proof for the next ten years.”

The mobile operating system will also support integration with automotive vehicles.  By dropping hardware, RIM will be able to save some major production costs.  They may have no choice but to pursue this strategy because the company lost one million buyers between Q2 and Q3.  Their revenues fell 5% to $2.7 at a net loss of $114 million during that period as well.