Once king of the smartphone world, Research in Motion's BlackBerry has steadily fallen behind Apple's iPhone and Google's Android operating system. RIM investors are also growing steadily unhappy about this, and may start calling for changes soon within the company, starting at the top.
According to a report from Reuters, as RIM's market share continues to shrink, and their stock price continues to drop, it could allow for someone like Carl Icahn to step in, who might buy cheap, and press for changes. At the same time, the co-chief executives -- Mike Lazaridis and Jim Balsillie -- may be on the hot seat as well.
"These guys are emotionally invested, taxed for time, and feel the pressure of being left behind and seeing your market fade away," noted an investor at a top-30 fund who would more than likely support but not instigate an activist play.
Ahead of the BlackBerry World conference in Orlando, Northern Securities analyst Sameet Kanade called for RIM to consider dropping Balsillie as co-CEO in an open letter, in addition to other recommendations.
RIM isn't alone in renewed shareholder activism in the tech world. Some may recall that last week, hedge fund manager David Einhorn of Greenlight Capital asked for Microsoft head Steve Ballmer to step aside, calling for fresh ideas.
It won't be easy though to get Lazaridis and Balsillie to step aside. Lazaridis founded RIM, and Balsillie came aboard shortly thereafter. They also split duties as chairman of the board.
"Jim and Mike brought the company to where it is…which is part of the biggest problem they're facing," notes Charter Equity analyst Ed Snyder, who's written about RIM since they first went public in 1997, a mere two years before the BlackBerry came about.
"They're stuck in the past. They know what worked and keep playing that card and it's not working any more, and they don't seem to have any ideas," he continued.
Snyder seems to think the only way RIM can be helped, is if they're able to deliver a smartphone that could challenge both the iPhone as well as Android units. It's certainly easier said than done, and Bing Gordon of Kleiner Perkins, who helped launch Google, doesn't see it happening any time soon.
"I expect to see the Maple Leafs win a Stanley Cup before RIM builds a number one phone," he said.
In case you were wondering, Toronto's NHL team hasn't won a Cup in more than 40 years.
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(Image courtesy of cbc.ca)
