The Future of RIMM

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    Posted: 18 August 2011 12:32 AM #31

    This cannot be a winner…..299 bucks, subsidized, for the newest, hottest Blackberry.

    T-Mobile customers, you are sooooooo lucky.


    http://www.bgr.com/2011/08/17/most-expensive-blackberry-bold-9900-yet-hits-t-mobile-on-august-31st-for-300/


    T-Mobile subscribers who thought $250 was a tough pill to swallow for the BlackBerry Bold 9900 will be none too happy with this morning?s news. T-Mobile on Wednesday finally announced the imminent launch of its Bold 9900 variant, which will become available on August 31st for a whopping $299.99 with a new two-year contract. What?s more, that price is after a $50 mail-in rebate, so subscribers looking to nab the latest flagship out of Waterloo, Ontario will have to part with $350 to do so. Ouch. ?T-Mobile is excited to add a BlackBerry smartphone to T-Mobile?s best 4G product lineup ever,? T-Mobile VP of product management Andrew Morrison said in a statement. ?With the new BlackBerry Bold 9900, we are offering our socially-active and business-minded customers a powerful device with a unique proposition ? the pairing of a nationwide 4G network with the mobile communications efficiency that has become synonymous with BlackBerry smartphones.? T-Mobile?s full press release follows below.

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  • Posted: 18 August 2011 01:26 AM #32

    Red Shirted Ensign - 18 August 2011 03:32 AM

    This cannot be a winner…..299 bucks, subsidized, for the newest, hottest Blackberry.

    It’s buried in the text you provided, but the $299 price is AFTER a $50 rebate. So the initial prices is $349.

    I cannot even begin to understand how RIM thought this would fly.

         
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    Posted: 18 August 2011 03:52 AM #33

    Blind arrogance is always spectacular to observe.

         
  • Posted: 18 August 2011 02:48 PM #34

    Who says Apple needs an entry level iPhone?  Compared to the Blackberry 9900, the iPhone IS entry level priced.

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    Posted: 18 August 2011 02:54 PM #35

    At the end of the day, data prices, not consumer-facing handset prices with contract, will determine the growth ceiling for smartphones.

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    Posted: 18 August 2011 03:44 PM #36

    Gregg Thurman - 18 August 2011 05:48 PM

    Who says Apple needs an entry level iPhone?  Compared to the Blackberry 9900, the iPhone IS entry level priced.

    The 9900 and iPhone are not entry level smartphones. There are many $0 (with contract) Blackberry & Android phones that I consider entry level.

    iPhone (both 3GS & 4) must have over 50% share of the high-end smartphone market. The Samsung Galaxy S was the single biggest selling Android phone model and it ship-sold somewhere between 10-13 million since Mar. 2010. Apple sold 4-5 times as many iPhones. Add up all the other high-end smartphones and maybe you get a total of half the iPhones sold.

    Apple is not going to introduce a sub-$200 iPhone. I don’t think I’ve heard anyone suggest that. We’re talking about something in the $300-400 range that can provide the full iOS experience while not cannibalizing the $600+ iPhones and still providing good profit margins. You could say it is “entry-level” for Apple, but it is not entry-level with respect to other smartphones.

         
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    Posted: 20 August 2011 07:40 AM #37

    One more thing which demonstrates RIMM has no idea what they’re doing.

    BlackBerry Music: $5 a Month, 50 Songs

    They’re just flailing at this point.  Really?  How is this going to prevent the droves of Blackberry users from bolting over to the iPhone?  I honestly don’t get it.

         
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    Posted: 20 August 2011 11:27 AM #38

    mjuarez - 20 August 2011 10:40 AM

    One more thing which demonstrates RIMM has no idea what they’re doing.

    BlackBerry Music: $5 a Month, 50 Songs

    They’re just flailing at this point.  Really?  How is this going to prevent the droves of Blackberry users from bolting over to the iPhone?  I honestly don’t get it.

    I read that this AM and was just shaking my head in disbelief as I read it.

    Reminds me of the Zune “squirt” thing (or whatever it was called).  RIMM is really reaching but, unfortunately for them, they have alligator arms.

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  • Posted: 20 August 2011 12:27 PM #39

    RIM is the next phone/tablet OS to disappear after webOS. RIM had super secure phones and deep tie ins to corporate and government offices that looked unassailable. But all of RIM’s functionality has been usurped or bypassed. They have nothing unique to offer today and it is taking them far too long to roll out their QNX products. By the time they do, the market will have passed them by.

    I think RIM would be dead even if they made all the right moves. It’s just too late. But the stories about their attempts to integrate music into their devices shows that, not only aren’t they making all the right moves, they don’t even have a clue as to which direction they should be taking.

         
  • Posted: 20 August 2011 12:30 PM #40

    The Future of RIMM is DIMM

         
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    Posted: 20 August 2011 04:54 PM #41

    I agree the future is very bleak for RIM, but death is not imminent. BBM is still strong overseas and many people are still hooked to physical keypads. Their devices and plans are cheap, so they still have a chance in the low-end market.

    They will become something like Dell or Nokia. Low-margin, high-volume. Still a viable business, just not leading edge or highly profitable.

         
  • Posted: 20 August 2011 05:44 PM #42

    Drew Bear - 20 August 2011 07:54 PM

    I agree the future is very bleak for RIM, but death is not imminent. BBM is still strong overseas and many people are still hooked to physical keypads. Their devices and plans are cheap, so they still have a chance in the low-end market.

    They will become something like Dell or Nokia. Low-margin, high-volume. Still a viable business, just not leading edge or highly profitable.

    Maybe. I can definitely see this happening.

    But it is the speed of their descent that is working against them. Dell slowly went from first to wherever the heck they are now over a long period of time. But RIM is sinking quickly and the mobile market is so dynamic that it makes RIM’s position look far worse than it is. Employee morale is already low. Investors may panic, board may members panic, management may panic, they may all panic all at once. A long slow slide may not be in the cards. A desperation effort to save the company may sink it even faster or get it sold or who knows what.

         
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    Posted: 20 August 2011 08:11 PM #43

    FalKirk - 20 August 2011 08:44 PM
    Drew Bear - 20 August 2011 07:54 PM

    I agree the future is very bleak for RIM, but death is not imminent. BBM is still strong overseas and many people are still hooked to physical keypads. Their devices and plans are cheap, so they still have a chance in the low-end market.

    They will become something like Dell or Nokia. Low-margin, high-volume. Still a viable business, just not leading edge or highly profitable.

    Maybe. I can definitely see this happening.

    But it is the speed of their descent that is working against them. Dell slowly went from first to wherever the heck they are now over a long period of time. But RIM is sinking quickly and the mobile market is so dynamic that it makes RIM’s position look far worse than it is. Employee morale is already low. Investors may panic, board may members panic, management may panic, they may all panic all at once. A long slow slide may not be in the cards. A desperation effort to save the company may sink it even faster or get it sold or who knows what.

    Maybe. That scenario is also possible. One thing is certain: when we look back on June 29, 2017 (10th birthday of the iPhone), the high-tech landscape will be radically different. It already is, but the transformation is just starting.

    In four short years the iPhone has decimated the cell phone competition. In less than two years the iPad has altered the course of personal computing. Jobs reportedly said the iPad ?...will be the most important thing I’ve ever done?. Does anyone want to contest that at this point?

         
  • Posted: 20 August 2011 08:56 PM #44

    Drew Bear - 20 August 2011 11:11 PM

    One thing is certain: when we look back on June 29, 2017 (10th birthday of the iPhone), the high-tech landscape will be radically different. It already is, but the transformation is just starting.

    In four short years the iPhone has decimated the cell phone competition. In less than two years the iPad has altered the course of personal computing. Jobs reportedly said the iPad ?...will be the most important thing I’ve ever done?. Does anyone want to contest that at this point?

    The iPod came out in September 2001. Ten years later it is an afterthought. I’m not predicting that for the iPhone. If nothing else, the one-two punch of the iPhone and the iPad will guarantee additional longevity. But look how fast things change!

    What is wrong with those fools who are making five year projections for phone growth! Are they mad? The best seers in the world can’t even predict a quarter ahead more less five years? Who foresaw Google buying Motorola? Who foresaw the TouchPad failing this quickly? Anyone who says they did is a liar.

    The future is uncertain, yeah. But the future of tech is a wild roller coaster ride that leaves your stomach churning (and established business professionals throwing up). And it never seems to stop!

         
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    Posted: 21 August 2011 03:36 PM #45

    RIM Rallies 100% in Sale Value as Google-Motorola Lures Samsung: Real M&A


    Aug. 18 (Bloomberg)—Frank Aquila, partner at Sullivan & Cromwell LLP, talks with Bloomberg Law’s Lee Pacchia about the state of corporate mergers and acquisitions in 2011 and Google Inc.‘s recent bid to purchase Motorola Mobility Holdings Inc. (Source: Bloomberg)
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    RIM?s share of the global smartphone market fell to 12 percent in the second quarter from 19 percent a year earlier, according to Gartner Inc. Photographer: Simon Dawson/Bloomberg
    The biggest wave of deals for mobile-phone assets in more than a decade may help Research In Motion Ltd. (RIMM)?s shareholders almost double their money in a sale.
    Led by Google Inc. (GOOG)?s takeover of Motorola Mobility Holdings Inc. and Nortel Networks? patent auction, acquisitions of wireless and telecommunications equipment makers may top $27 billion this year and approach the record in 1999, according to data compiled by Bloomberg. After Google agreed this month to pay a dot-com era premium for Motorola and its patents, RIM, maker of the BlackBerry, may now be worth almost $25 billion, an estimate from Morgan Keegan & Co. showed. The shares surged as much as 8.1 percent today.
    Once valued at $83 billion, RIM fell 83 percent through yesterday as Apple Inc. (AAPL)?s iPhone and Google?s Android platform lured away smartphone customers. With Google gaining Motorola?s handset business, RIM may now attract interest from Samsung Electronics Co. and Microsoft Corp. (MSFT), Stewart Capital said. A buyer would get a smartphone maker that is still dominant among corporate clients, runs its own operating system and offers greater security with its own e-mail servers. Paying twice RIM?s value of $13.5 billion would still be a discount to rivals.
    ?It gives a potential acquirer scale and share in a market that?s rapidly being dominated by Google and Apple,? said Malcolm Polley, who oversees $1 billion as chief investment officer at Stewart Capital in Indiana, Pennsylvania. Buying RIM makes sense for Samsung because ?Google all of a sudden has become a competitor,? he said.
    ?It might be valuable for someone like Microsoft that?s trying to make inroads into the handheld space,? he said.
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    Titus Kim, a spokesman at Suwon, South Korea-based Samsung, declined to comment on whether it would consider buying RIM.
    Peter Wootton, a spokesman for Redmond, Washington-based Microsoft, said the company doesn?t comment on rumor or speculation. Marisa Conway, a spokeswoman at Waterloo, Ontario- based RIM, also said it doesn?t comment on rumor or speculation.
    RIM?s shares rose 3.6 percent to $26.69 after climbing as high as $27.85. The gain was the third largest in the Nasdaq-100 Index even as U.S. stocks fell for a fourth straight week.
    Since peaking in June 2008, RIM?s market value plummeted almost $70 billion through yesterday. The decline in the stock is the biggest among communications-equipment providers worth at least $10 billion, data compiled by Bloomberg show.
    Over the same span, Cupertino, California-based Apple has doubled to become the world?s second-largest company with a market capitalization of $339 billion, the data show.
    RIM, which introduced a new lineup of BlackBerry phones this month, a year after its last new devices, is losing out as consumers spurn its aging models for iPhones and handsets running Android software.
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    Cheaper Android phones are also making inroads in Latin America, Asia and Europe, threatening the popularity of RIM?s less expensive BlackBerry models such as the Curve.
    RIM?s share of the global smartphone market fell to 12 percent in the second quarter from 19 percent a year earlier, according to Gartner Inc. Google?s Android became the leading mobile-phone operating system in the same period, rising to 43 percent, while Apple climbed to 18 percent.
    About two years ago, RIM controlled more than half the North American market, according to Sanford C. Bernstein & Co.
    While Jim Balsillie and Mike Lazaridis, RIM?s co-chief executive officers, said in June that their commitment to RIM is ?stronger than ever,? Mountain View, California-based Google?s $12.5 billion deal for Motorola may bolster RIM?s value to potential bidders.
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    Google agreed to buy Motorola for $40 a share, or 73 percent more than the Libertyville, Illinois-based company?s 20- day trading average, data compiled by Bloomberg show. That?s the highest premium for a wireless-equipment takeover greater than $500 million since 1999, the data show.
    A group led by Apple paid $4.5 billion for Nortel?s patents in June. The auction ended after 19 rounds with a price that was five times more than Google?s bid before the process began.
    With wireless technologies becoming more complex and smartphone sales forecast to double by 2015, takeovers and asset sales in the industry have increased as handset makers try to gain leverage over their competitors.
    The value of deals in the wireless and telecommunications equipment industry is on pace to reach the highest level since $30.2 billion in transactions were announced in 1999, according to data compiled by Bloomberg. Based on the implied revenue multiple Google paid for Motorola?s smartphone business, RIM could be worth $47 a share,

    http://www.bloomberg.com/news/2011-08-19/rim-rallies-100-in-sale-value-as-google-motorola-lures-samsung-real-m-a.html

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