[Rumour] RIM considering licensing BB10

[grahamf]

"RIM likely agreeing to license Blackberry 10 to Samsung, HTC, and possibly others", analyst says | MobileSyrup.com

So until RIM gets their stuff in order, here’s a fresh, new rumour to ponder. Peter Misek, analyst from Jefferies & Co., stated in a note to his clients that he believes RIM has, or will, start to licence the BlackBerry 10 OS to other manufacturers such as Samsung, HTC. No other details are given, but personally I cannot see either of these companies licensing another OS. Both of them are deeply involved with Google’s Android OS and Microsoft’s Windows Phone 7 OS. In addition, Samsung has their own bada OS (which isn’t widely adopted), and HTC has reportedly pondered creating or buying a mobile OS. Just like the note to his clients states, if RIM goes in this direction it will put pressure on their hardware business, but increase the service revenue.

I don't know if this is true or not, but this could be a logical move for RIM.

This way they could just focus on the software part (but unlikely; I'd expect them to still maintain their hardware division).

The major problem that can occur is updates and fragmentation. I don't know about updates, but I think all RIM has to do is have a Theme Builder for BB10 and allow manufacturers to bundle their own themes, and encourage manufacturers to adhere to strict guidelines for preloaded apps that ensure they don't bog down the system or make the OS unusable.

[app_Developer]

What would RIM expect these other companies to pay per device?

[robsteve]

Originally Posted by app_Developer

What would RIM expect these other companies to pay per device?

Not the companies, but the end user, about $5 per month per BIS account. I wonder if Google gets revenue of $5 per device from their Android os via the advertising revenue and etc.

[Blacklac]

Samsung is using Android, WP, Bada and possibly Tizen (if/when it comes out). Why would any company choose BB10 over those already? Especially if they need to pay licensing?

I'm not saying it's a bad idea or they won't, I just don't understand why they would with so many other choices.

[menaknow]

Originally Posted by Blacklac

Samsung is using Android, WP, Bada and possibly Tizen (if/when it comes out). Why would any company choose BB10 over those already? Especially if they need to pay licensing?

I'm not saying it's a bad idea or they won't, I just don't understand why they would with so many other choices.

Why wouldn't Samsung?

They would be able to get a user that loves BBM to use a Samsung product. That one sale that wouldn't be theirs suddenly is another sold customer.

[robsteve]

Originally Posted by Blacklac

I'm not saying it's a bad idea or they won't, I just don't understand why they would with so many other choices.

It would be a door into the business, and other security minded customers.

[Blacklac]

Originally Posted by robsteve

It would be a door into the business, and other security minded customers.

Ahh, good point. Completely missed that market in my thought process.

[Thunderbuck]

Originally Posted by grahamf

"RIM likely agreeing to license Blackberry 10 to Samsung, HTC, and possibly others", analyst says | MobileSyrup.com



I don't know if this is true or not, but this could be a logical move for RIM.

This way they could just focus on the software part (but unlikely; I'd expect them to still maintain their hardware division).

The major problem that can occur is updates and fragmentation. I don't know about updates, but I think all RIM has to do is have a Theme Builder for BB10 and allow manufacturers to bundle their own themes, and encourage manufacturers to adhere to strict guidelines for preloaded apps that ensure they don't bog down the system or make the OS unusable.

Since there isn't anything to back up the analyst's note, this may be speculation, informed or not, on the part of the analyst.

What it ultimately means, though, is that RIM will no longer be in the hardware market. They may continue to make handsets for a year or two, but the clock would start ticking from the minute an announcement was made.

[robsteve]

If you look at HTC, it would also be a door into China with less expensive devices for the masses there, all running on the Blackberry Network, all paying Blackberry a monthly fee.

[app_Developer]

Originally Posted by robsteve

Not the companies, but the end user, about $5 per month per BIS account. I wonder if Google gets revenue of $5 per device from their Android os via the advertising revenue and etc.

Oh, interesting. So they would give the OS to the manufacturers for free then? That's an interesting idea, actually.

[Blacklac]

Originally Posted by robsteve

If you look at HTC, it would also be a door into China with less expensive devices for the masses there, all running on the Blackberry Network, all paying Blackberry a monthly fee.

That reminded me if this article too.

http://www.intomobile.com/2011/12/28/argentina-bans-iphone-and-blackberry-imports-support-local-production/

[robsteve]

Originally Posted by robsteve

Not the companies, but the end user, about $5 per month per BIS account. I wonder if Google gets revenue of $5 per device from their Android os via the advertising revenue and etc.

Originally Posted by app_Developer

Oh, interesting. So they would give the OS to the manufacturers for free then? That's an interesting idea, actually.

The recurring revenue is what a lot of people forget about a Blackberry compared to another brand of phone. When another brand of phone is sold, the manufacturer makes the revenue on the sale of the hardware and branded accessories, but that is the end of it. When a Blackberry is sold RIM makes the revenue on the hardware plus a monthly fee until that phone is no longer on the cellular network.

In some cases, when the customer buys his new Blackberry, the old one is either sold into the used market or traded in/donated to be used in other markets, such as the developing world, where the phone continues to generate revenue for Blackberry. I have a drawer full of old Motorola phones, but my two old Blackberries are still in use, one by my son and another given away.

[sleepngbear]

Originally Posted by robsteve

It would be a door into the business, and other security minded customers.

My thoughts exactly ... assuming they want to get into that market. I would think two things need to happen before RIM would make such a business shift: 1, they would have to know that tbere is interest from one or more other manufacturers in licensing BB10 (as in having signed agreements in hand); and 2, they would have to have a solid business case for abandoning the hardware line of business, since that essentially is what they'd be doing. My guess would be, if there is any substance to this whatsoever, that this BB10 exercise is proving decreasing profitability for them to develop both software and the hardware to run it on. But I'd find it very hard to believe that this is a possibility as much as an item on some analyst's wish list.

[Hush9300]

I think it is a bad idea and as mentioned before will lead to fragmentation although the upside would probably be widespread adoption of the OS and therefore more developer support.

I just can't see this happening as it all but kills off BlackBerry handsets. This would be a last resort for RIM should they fail in their transition, that is if they are not acquired.

[Thunderbuck]

Originally Posted by robsteve

Not the companies, but the end user, about $5 per month per BIS account. I wonder if Google gets revenue of $5 per device from their Android os via the advertising revenue and etc.

Google doesn't HAVE to charge a subscription fee for Android. Between ad revenue and the data they collect (some of which is sold), they likely make considerably more than $5/user/month on Android.

RIM, in fact, should really look at other ways to "monetize" BIS.