RIM India CEO Resigns – Is This A Beginning of The End ?

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Research In Motion (RIM) has faced another jolt after facing tough time in the market. RIM India CEO, Frenny Bawa, has reportedly resigned from his post; Unfortunately, her resignation came at the time when RIM is already impediment due to global outrage – happened last month – and company needs her service, especially in India, Middle East and Africa.

Undoubtedly, RIM is going through rough patches; account books are not showing any positive numbers, market share is plunging due to Android and Apple iOS and the overall company is worth less than its net value of property, patent and other assets.

A decade ago, the company revolutionized the world with highly secured Smartphone communication service. But in present, intense competition made company to move down hills and market share is in stake. By the End of August 27, RIM reported decline in its net income nearly 59 % – equivalent to $329 million. The stock has already dropped 67% this year, cutting RIM’s market value to $9.91 billion. Even, in US, RIM’s market share has declined from 24 % to 9% after Q3 report this year.


After the resignation of Ms. Bawa, company’s spokesperson told that she has incredibly served the company from 2004 and promoted RIM in Middle East, Africa and most recently, India. Prior to RIM Ms Bawa has served TELUS- a leading national telecommunication Company in Canada. After joining RIM, Ms. Bawa headed company’s operations in India and also oversaw business and its development in Middle East and Africa.

When RIM heard the tough tune from Indian Government over its data security issue, Ms. Bawa successfully managed to handle the situation. Infact, despite of all such challenges, she has recovered the business and number of subscribers increased to approx one million against 70 million globally. She had established the company in such market where domination of low cost mobile phones is quite high.

Dissatisfaction arose last month, when number of  Blackberry users faced problems in accessing e-mail, messenger and other online services for three days due to core Switch failure. This made many many corporate users to start distancing with Blackberry and company went into damage control mode by offering $100 worth mobile app – which failed to lure customers. Android and Apple have been progressed at the cost of Blackberry.

The actual reason behind Ms Bawa departure is not clear yeat, but it is being anticipated that company’s constant decline market share and possible buyout with Vodafone could be the main reason which made her to explore the other options.



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