RIM Won't Live to See 2013, Analyst Says
RIM Won't Live to See 2013, Analyst Says
Unimpressed by RIM's new BlackBerrys, at least one analyst says RIM's co-founders will run the company into the ground.
By Eric Zeman, InformationWeek 4-Aug-11
Eric Jackson, manager of Ironfire Capital, had some bold words Wednesday about Research In Motion. In short, he doesn't see the BlackBerry maker surviving past the first quarter of 2013 as an independent company.
Speaking to Business Insider, Jackson said of RIM, "It's a bad software company" and RIM's "not going to change their stripes over night." More to the point, Jackson blames RIM's co-CEOs, Mike Lazaridis and Jim Balsillie, for its troubles. The company has "bad co-founders, and they're going to drive this company straight into the ground," said Jackson.
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Some employees and shareholders might agree.
What got Jackson's ire up? The new BlackBerrys announced by RIM on Wednesday. The company introduced a few new models that are--once again--incremental updates to previous devices.
Jackson is right in pointing out that RIM is not a software company--or at least not an innovative one. Its BlackBerry smartphone platform may be stable and secure, but it is slow to add features, and isn't as flexible as the platforms being offered by the competition. RIM is and always has been a good hardware company, though it could take a few more risks in the design department as far as I am concerned.
RIM has taken a risky shortcut in order to have something sitting on the shelves of its wireless network operator partner's stores for the next six months as it prepares its QNX-based smartphones. It refreshed existing form factors, bumped up the specs, put some spit and polish on the user interface, and hopes no one will notice that these are the same-old phones. Well, we noticed.
Surely these new BlackBerries will fulfill their role as the stop-gap they are intended to be. Businesses and consumers alike will upgrade from old BlackBerrys to get the better performance and shinier tech from RIM.
Meanwhile, RIM will continue to lose market share to Apple and Google. By the time its QNX smartphones hit the market (some time in the first half of 2012), RIM's position in the market will have sunk even further. Apple is preparing to unleash the iPhone 5, and the onslaught of new and exciting Android handsets shows no sign of stopping. RIM will face a difficult challenge convincing Android and iPhone users to abandon their gear for unproven BlackBerrys running a tablet OS that isn't very good at being a tablet OS.
Jackson thinks that by the time the QNX BlackBerrys show up, RIM's stock will be battered down to the basement, making it a likely acquisition target. Given how much its stock as tanked (from $69 per share in February to just $23 per share as of noon on Thursday) in the last six months, it is not an unbelievable scenario.
RIM Won't Live to See 2013, Analyst Says -- InformationWeekRIM Won't Live to See 2013, Analyst Says - mobility BlogThanked by:
- CrackBerry Abuser
08-04-2011, 03:13 PM #4
- 242 Posts
- Personal Irritation Number, I don't like 9
ah! I was wondering when you would post the next article, but there it is...pffffff...serious dude, you got way to much spare time...go put a hybrid on your storm2 or somethingGreetings,
"Don't you mind people grinnin' in your face" - Son House
- 08-04-2011, 03:16 PM #6
I don't think will be gone. If anything it will be around still supporting corporations and governments. Worst case, someone else will buy them.Mobile Devices: Nexus 5 32GB Black
Computer: MacBook Pro (2012) 8GB RAM, 750GB HDD
Other devices: iPad Mini
- 08-04-2011, 03:21 PM #8
too big to fail, i admit im torn on a takeover, i want the CEOs out and a change of culture but i don't think i want a take over and the resulting loss of identity.
either way RIM has too much reserve cash and assets to fail completely imo.
Last edited by Kobol; 08-04-2011 at 03:22 PM. Reason: spelling - playbook
- 08-04-2011, 03:32 PM #11
Spoken like a true analyst that only looks at one profit center within the company.
People thought BP was going to go under after the oil spill. Funny I guess they didn't take notice BP is the manufacturer of choice for the solar panels that Home Depot sells. And container ships that move goods across the oceans aren't owned by any make believe corporations.
- CrackBerry Abuser
08-04-2011, 03:35 PM #13
- 120 Posts
The statement "Its BlackBerry smartphone platform may be stable and secure, but it is slow to add features, and isn't as flexible as the platforms being offered by the competition" in the article cited above is a credible synopsis of RIMs ongoing problems in the smartphone market.
It also appears to hold true for the Playbook.+ Battery Pull =
- 08-04-2011, 03:49 PM #14
He's talking about the North American consumer smartphone market specifically, RIM is probably a sinking ship. Elsewhere (biz, outside US) not so much. I read a little blurb on the new 3 phones using QNX and fell asleep halfway though it. And to think iPhone 5 will be out in October probably. You gotta have cool displays and cameras and apps up the wazoo. That's what sells here.Samsung Galaxy Nexus, iPad2 and iMac. Former BB 8100 and 8900 owner.
- 08-04-2011, 04:52 PM #16
"Analyst won't keep his job through 2013," SCrid2000 says.
Originally Posted by SCrid2000
Last edited by SCrid2000; 08-04-2011 at 04:57 PM.Need an app for your blog/business or want some BB10 coding help? PM me for rates
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- CrackBerry Addict
08-04-2011, 07:10 PM #18
- 676 Posts
I personally don't have enough blind faith to stand by RIM right now.
If you're defending RIM; you better have some inside information to support your argument because the pattern with them is NOT good. The court of public opinion can doom a company.
EDIT: I love my BlackBerry and will be buying a 9900. But...I'm in the minority! I see what my friends think and EVERYONE is moving to Iphone or Android.
Last edited by CGI; 08-04-2011 at 07:13 PM.
- 08-04-2011, 07:35 PM #20
How many tombstones have the press/media/bloggers built for RIM since April?
Just like the rubberneckers on the highway like to slowdown and enjoy the carnage on the side of the road. My advice--MOVE ON, you are slowing us down from reaching our destination, QNX phones.
Remember, 65 million users and counting on BB OS, and millions more once QNX phones are available. That's more than the population of UK!
Evolution of Communication: Rotary Phone > Dial Tone > Motorola Walkie-talkie > Nokia 2160 > Nokia 6190 > Samsung a460 > Samsung a920 > BB 8700 > BB 9530 > BB 9860 > PlayBook > Z10 > HTC One X+
- 08-05-2011, 08:58 AM #21
Last edited by EdS817; 08-06-2011 at 05:25 AM.New York Yankees
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- 08-05-2011, 09:29 AM #25
OK so every other phone manufacturer puts out a phone that is similar to another phone they made last year with a few upgrades to processor etc. but they are ground breaking exciting stuff. RIM does it (all though not the newest nor out dated) and they are dead. OK I get it.Sent from me using my fingers. Be pantless in 5K. Febreze - for more than smells.
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