BlackBerry firm steps away consumer business

BlackBerry firm steps away consumer business

By Rob Crossley

March 30th 2012 at 10:03AM

Key executives resign as profits fall; New CEO says 'we cannot succeed if we try to be everybodyâ??s darling'

Research in Motion will pull investment away from consumer products and focus on reviving its core market of work-related products, the firm’s new CEO has indicated.

"We plan to refocus on the enterprise business and capitalise on our leading position in this segment," said chief executive Thorsten Heins.

“BlackBerry cannot succeed if we try to be everybody's darling and all things to all people. Therefore, we plan to build on our strength."

The consequences of this strategy on games are not yet clear. It would appear that its entertainment division, which includes games and apps, is now under review.

The Canada based company has struggled to gain ground in the smartphone and tablet consumer market.

The company made a $125 million net loss over a three month period ending March 3rd, with revenues dropping from $5.2 billion to $4.2billion.

Co-chief executive Jim Balsillie has resigned, as has chief technology officer David Yacht.

Shares in the company fell as far as 9 per cent in after-hour trading. The price has sunk by about 80 per cent in the past twelve months.

Smartphone shipments fell 20 per cent to 11 million.

The company made a net profit of $1.2billion, but investors have responded negatively as the figure last year stood at $3.4 billion.