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RIM CEO Thorsten Heins' 'Significant' Plans For BlackBerry

Rim Ceo Thorsten Heins

First Posted: 01/27/2012 9:39 pm Updated: 01/29/2012 11:52 am


By Sinead Carew and Nicola Leske

NEW YORK (Reuters) - Research in Motion's Thorsten Heins plans to waste no time in his new job. The BlackBerry maker's chief executive said he will present the board with his plan for company's future in just a matter of weeks.

The German-born executive, who took over from two longstanding co-CEOs on Saturday, said his plans for RIM would be "significant" though he did not divulge details in an interview with Reuters.

"I will have time with the board in two weeks to present my ideas and changes," Heins said.

But the executive, who was promoted from the role of chief operating officer, said he has already done groundwork to tackle his company's most pressing problem - persuading the U.S. market to covet the BlackBerry again.

While RIM is growing in other countries, Heins conceded that its U.S. business is in need of a major revival after losing out to rivals like Apple Inc's iPhone at U.S. service providers and corporations, where it once had a clear advantage among employees heavily dependent on its email service.

"In general I wouldn't consider RIM as a turnaround candidate. It is a turnaround candidate in the U.S.," he said. "We lost market share in this market quite substantially. That is something that we have to address."

While U.S. operators such as Verizon Wireless and AT&T Inc have helped BlackBerry with heavy advertising and promotions in the past, these operators have been much more focused in the last few years on devices like iPhone and smartphones based on the Google Inc operating system.

Heins' quest to regain ground with these operators has been complicated by the fact that RIM had to announce in December that it is delaying the launch of phones based on BlackBerry 10 - its next-generation software - until the later part of 2012 as it is awaiting the availability of a high-powered chip.

The executive would not say when exactly these phones would hit the market but implied that they would arrive in time for the year-end holiday-shopping season in the fourth quarter.

So in the meantime, Heins will concentrate on getting the most current BlackBerrys into more consumers hands. He noted that only 20 percent of U.S. BlackBerry users have the company's latest phones, which he says are competitive with rival smartphones.

The rest of RIM's U.S. customers have devices with older RIM software, some of which are "two generations behind," he said.

To overcome this, RIM has devised a new upgrade plan with U.S. operators to promote phones with the BlackBerry 7 system, which was launched in August last year.

"All the plans are ready. The carrier agreements are all ready. Now we have to get off the starting grid. Now we need to execute that upgrade program," Heins said.

While he did not want to disclose specifics about the new agreements, Heins said RIM could look at new ways of bundling different devices together or offering carriers smartphones with a package of pre-loaded applications.

He is also betting on the company's PlayBook tablet to compete with the Apple iPad tablet. This spring, Heins said that RIM will launch a version of the Playbook, with a high-speed wireless connection based on LTE - a technology that the top three U.S. operators are building into their networks.

Verizon Wireless and AT&T are already promoting LTE devices including smartphones and tablets from RIM's rivals. RIM's first smartphones with LTE connections will be in the company's BlackBerry 10 line-up, Heins said.

MOMENT OF SURPRISE

In his first presentation to Wall Street as CEO earlier this week, Heins said he did not think the company needed drastic change, causing some analysts to worry that the executive would not do enough to reverse the company's fortunes.

But the executive said on Friday that he was merely telling Wall Street that he does not want to change the core of RIM.

"Is RIM up for sale, is RIM up for a split-up?" He rejected those possibilities as "a drastic, seismic change because it would tear the company apart."

Heins, who has been with RIM for four years after spending over two decades at German engineering group Siemens, was became COO responsible for software and products seven months ago.

He explained that RIM had succession plans for co-CEOs Mike Lazaridis and Jim Balsillie in place for some time and that he had an inkling that he was being groomed to follow in their footsteps when he was named COO.

"The moment they tell you it's still a surprise," Heins said, smiling broadly and adding that he immediately said yes.

Lazaridis and Balsillie, who turned the BlackBerry maker into a global company and a household name, stepped down last week but will remain on the board.

Some analysts have worried whether these executives would have too much of a say in the future strategy of the company because of their position on the board.

Heins said, it would be an advantage to be able to tap into the experience and company knowledge of RIM founder Lazaridis, but he made it clear that he would be the one calling the shots.

"What I do with the company is my decision. The CEO runs the company."

(Reporting By Sinead Carew; Additional reporting by Alastair Sharp and Peter Lauria; Editing by Gary Hill)

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By Sinead Carew and Nicola Leske NEW YORK (Reuters) - Research in Motion's Thorsten Heins plans to waste no time in his new job. The BlackBerry maker's chief executive said he will pres...
By Sinead Carew and Nicola Leske NEW YORK (Reuters) - Research in Motion's Thorsten Heins plans to waste no time in his new job. The BlackBerry maker's chief executive said he will pres...
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03:49 PM on 01/30/2012
Best thing you can do is change the name: I hear blueberry is available or maybe frankenberry would be more befitting, although I think that might be taken.
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DevRock
12:47 PM on 01/30/2012
I really don't see how they are going to stop the bleeding. Other than being able to have strict security on how a phone is used (which, honestly, most companies don't use), what's the advantage? We have a couple hundred users in my company that use them, but primarily because the company PAYS for the phones and service. I'm one of the IT staff, and I use my iPhone. I refuse to ever use a BB again. They are a nightmare to administer. And slow. And so un-friendly. It's way too little, too late for RIM. They may have millions of users, but that will not carry them through a refresh cycle.
12:04 PM on 01/30/2012
When you're running in any race, especially the tech race, you can't afford to take a 2 year break and expect to catch up. Nothing they do will help. Their time to act was 4 years ago - and they did nothing.
09:30 AM on 01/30/2012
RIM has been losing US market share for 5 years now. At one time they were unique in providing solid Exchange integration. Now everyone does - even Apple. There is little, if any, advantage to owning a BB. If it weren't for an existing entrenched market presence, and tight IT dollars better spent on things other than replacing phones, they'd be in even worse shape.
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OldCowboy
Against stupidity the Gods contend in vain.
06:40 AM on 01/30/2012
RIM is going to suffer the same fate as Kodak. Too little, too late.
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tomjones
04:30 AM on 01/30/2012
I think this new CEO is only there for the money. He knows that he cannot turn things around. Android phones are now ruling and their technologies are awesome. http://bit.ly/wjlsM8
10:49 PM on 01/29/2012
The contract for my Torch 9800 expires soon, and is going in the trash. It has been totally unstable.When I remove it from its holster, I never know what screen or app will be showing, or what settings have changed. I never had these problems with earlier BB's, but my current BB has soured me on RIM.
03:06 AM on 01/30/2012
just get the o.s. re installed or run the wipe function it is easy. once a year you need to do this.
10:44 PM on 01/31/2012
Thanks, I'll try it.
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eejones
Democratic majority in both houses
09:49 PM on 01/29/2012
What about more apps for the PlayBook? It's an awesome piece of hardware with an unimpressive list of apps.
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06:04 PM on 01/29/2012
Last week the sound bite was to "stay the course",and that bombed,so now it's time to preach "significant" stuff.What this indicates is the train is completely off the rails.
04:13 PM on 01/29/2012
Deck chairs. Titanic.
01:54 PM on 01/29/2012
It annoys me how quick everyone is in writing of RIM and BlackBerry. I just got a BlackBerry Playbook and I'm loving it, and I can't wait to see the new phones later this year.
04:18 PM on 01/29/2012
The Blackberry Playbook was a TOTAL failure. RIM is selling them below cost just to move them. Blackberry is down to 9% of US smartphone market and it's stock has lost 75% of its value in the last year. I would be embarrassed to be seen with one.
04:40 PM on 01/29/2012
Perhaps you missed the $485 million dollar write-down.
12:33 PM on 01/29/2012
I've been lusting after the Bold 9900 since its release. It's the $599 sticker price that prevents me from getting it.

The iPhone is nice. Android phones are nice. But BlackBerry suits my needs better. The big kicker: The keyboard. BlackBerry's keyboard is the best available. I use my BlackBerry to write on, especially when out of the office. I can write 2,500 words at a time on it. I've tried touchscreen phones, and I just can't use them. I absolutely HATE autocorrect, which seems essential when using a touchscreen.
photo
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Leto II
She say she are the manager.
09:57 AM on 01/31/2012
There are Andriod phones that have keyboards. And you can turn off autocorrect if you want. The best thing about Android more than Apple or Blackberry is: you get options to do what you want with your phone. Options are nice.
11:04 AM on 01/29/2012
Good they do need to change their image nothing basically wrong with their business model. They just need to get newer models out and fast. What could benefit them in the long term would be the fact that apple and google devices are facing serious battery power challenges. If they cannot overcome those it is the end of the road for their innovation and think different theme. Also chinese labour issue may cause them dearly in production cost increases.
04:20 PM on 01/29/2012
Nothing wrong with their business model you say. Wow, just wow! They are down to 9% of US smartphone market and their stock price has lost 75% of its value in the last year. #deadmanwalking
09:54 PM on 01/29/2012
they are growing elsewhere are they not? stock market is a not very reliable source of judgement. they can get very depressed and manipulative powers are also at work. look at the balance sheet have they shown a loss for a single quarter? has the yearly profit dipped below 1 billion even? Usa market is herding behind apple and samsung now you cannot fight a hurricane tide but wait for it to recede. just be patient many will start coming back to b.b as soon they launch a completed bb10 phone software.