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Not too long ago Elizabeth Harrow noted that Apple Inc. (NASDAQ: AAPL) has actually ramped up its payroll by 48% in fiscal 2008. Today we hear that Research in Motion Ltd. (NASDAQ: RIMM) actually has more than 1,250 positions it needs filled mostly in its Waterloo, Ont. headquarters within its R&D and product development departments. Yes, RIM is hiring.
It's no secret that RIM has recently revamped its line of smartphones to try and broaden its appeal beyond the corporate user and reach the consumer. It did it to mixed reviews. The touch screen BlackBerry Storm got an awful review from David Pogue at The New York Times, while others disagreed. Similarly, it seems that some are disappointed with the new Pearl Flip while others see the potential appeal. The new Bold seems mostly to hold its own as a solid corporate phone.
Other than the recent launches, RIM has also been hit by a stream of bad news, taking its stock down 65% year-to-date: Apple sold 6.9 million iPhones in the last quarter, compared with 6.1 million BlackBerrys. Palm (NASDAQ: PALM) reported abysmal earnings and Nokia (NYSE: NOK) has lowered estimates recently. Oh, Nokia launched another smartphone competitor, the N97. Then there's the recession in North America, Europe, and Japan, a recession that may become global soon. And research firms project a drop in mobile-phone sales. With all this could RIM really keep to its targets in 2009?
It may seem odd for RIM to be hiring now, but perhaps if a company has the cash and wants to work further on improving its products, this is the perfect time to do so. Even engineers would be willing to work for less these days, making RIM's costs for the same labor it needs much lower. RIM could work hard on R&D so it is able to come out with amazing products once the recession ends. It could also restructure then.
It's good to see a company concentrating on the long term, rather than trying to satisfy investors' hunger for short-term gains with short-sighted moves. RIM is helping itself and is also helping the (Canadian) economy. If more companies around the world act that way, we may come out of this recession sooner, companies may start seeing their profits grow sooner, and investors will be happier.
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