RIM Dumped $1.4 Billion Into R&D In 2010 (And A Similar Amount In 2009). What’s To Show For It?

  • November 15, 2011 3:56 pm

According to Research Info$ource, RIM tried harder than ever in 2010 to pump out truly unique, innovative products as is evident by a reported massive $1.4 billion R&D price tag. The year before in 2009 was also a big year, with RIM spending slightly less ($1.1 Billion) on R&D as well. Considering one of RIM’s biggest competitors, Apple, spent “only” $1.3 Billion on R&D in 2009, one has to ask exactly what the hell RIM is doing behind closed doors, and why can’t they get anyone excited about their products. (No really. Watch their BBX keynote. It’s a glorified train wreck of an infomercial.)

There are two possible scenarios…

  1. RIM’s work on BBX is actually older than the company has led us to believe and spans multiple years. Such a reality would account for high 2010 and 2009 R&D.
  2. RIM’s R&D department and/or executive team is out of touch with the consumer market and is throwing money away on God knows what.

If BBX is as massive of an upgrade as RIM claims it would (and should) finally live up to the hype that RIM continually puts out regarding OS updates, and yet too often fall flat. It would make sense for RIM to be dumping massive amounts of money into BBX because…it’s all they’ve got left. If they fail with BBX they’ve effectively done.

If BBX isn’t the reason for the large R&D budget, their R&D team should be fired. For the last handful of quarters, each “all new” and generational “leapfrogging” device has been at best, a minor re-design of the previous generation offering nothing new or enticing. Never mind the fact that the entire ecosystem that makes both iOS (as well as Android and WP7) much more potent competitors is it gives people a place to continually dump money — software. While RIM has that in App World, the experience isn’t up to par with the other three. We could argue all day that it is. But numbers don’t lie. If RIM’s current products and software were worth consumers’ time, they’d be on top, not Apple.

Yeah, harsh words for RIM. But hopefully it spurs some serious change and innovation. First up: Get BBX out the door sooner rather than later in a polished, cohesive state and give developers a reason to stick around. Second order of business: Fire the co-CEOs for.

Source: Research InfoSource | Via: InfoSource, PhoneArena

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