Plan to separate hardware business from messaging network.
Research in Motion is rumored to be considering a move to split the company in two, effectively separating its handset division from its messaging network. The BlackBerry manufacturer has been struggling with sales in a market that is dominated by Apple and Android, and this latest rumor is one of the many plaguing the company.
If RIM were to sell of its BlackBerry hardware business, it’s unsure who would be willing to snap it up. Facebook perhaps, or even Amazon are rumored as “potential buyers”, but this would hardly make for a sound investment for either company. RIM has so far declined to comment, but confirmed that it is still looking at a range of possibilities for the future of its various businesses.
Recent reports on RIM showed that the company reported a staggering $125 million loss and 25 per cent drop in revenue, amidst executive resignations and a stagnant handset operating system. While the company is still pushing forward with its plans to launch BlackBerry OS 10, it is also proceeding with other cost-cutting methods and small-scale global layoffs. It remains to be seen in the months ahead if there is any possibility of RIM saving itself or if the time is coming for it to finally bow away from the handset race.