[Whimsical Dreaming] Apple Inc. to Invest in RIM

[r.speziale]

Ok, so the headline isn't true.

However, let's not forget that in 1997 the 'dominant' Microsoft invested $150 Million in the 'struggling' Apple. So, perhaps Apple, with its current dominance, will now invest in RIM.

Some say the $150 Million investment by Microsoft helped contribute to Apple's turn around. And interestingly, Apple and Microsoft engaged in healthy competition thereafter.

My theory is that a RIM buy-out will never happen. However, an investment / partnership is likely.

So yes, sounds crazy now (as did the Microsoft-Apple partnership then).

What's your opinion?

a) Why would Apple invest in RIM?
b) How could Apple's investment help RIM?
c) Would you welcome the investment?

Here's Apple's official press release (Aug 6, 1997) announcing Microsoft's investment:

Microsoft and Apple Affirm Commitment to Build Next Generation Software for Macintosh
Companies announce patent cross-license agreement. Microsoft announces Office 98 for Macintosh; Apple announces Internet Explorer to be bundled with Mac OS. Product commitment backed up with $150M Microsoft investment in Apple Computer.
MACWORLD EXPO, Boston-- August 6, 1997--In a keynote address delivered today at MACWORLD Boston, Apple Computer Inc. director and co-founder Steve Jobs and Microsoft Corp. chairman and CEO Bill Gates announced a broad product and technology development agreement between Apple and Microsoft including the following:

The companies agreed to a broad patent cross-licensing agreement. It paves the way for the two companies to work more closely on leading-edge technologies for the Mac platform.

Microsoft will develop and ship future versions of its popular Microsoft Office productivity suite, Internet Explorer and other Microsoft tools for the Mac platform.

Apple will bundle the Microsoft Internet Explorer browser with the Mac OS, making it the default browser in future operating system software releases.

Apple and Microsoft plan to collaborate on technology to ensure compatibility between their respective Virtual Machines for Java and other programming languages.

To further support its relationship with Apple, Microsoft will invest $150 million in non-voting Apple stock.

"In 1984, Steve Jobs and I stood together when Microsoft announced Microsoft Excel, an application that is widely credited with helping to define the potential of the Mac as a great applications platform," said Gates. "Today's announcements underscore our continued belief in the Mac as a platform for applications and leading-edge Internet technologies. Microsoft has millions of customers who rely on Macintosh technology and they can be assured that Microsoft products for the Mac will continue to be available."

"We are thrilled at the prospect of working more closely with Microsoft on applications and Internet software" said Jobs. "We are confident that this is the beginning of a much closer relationship between the two companies, which will greatly benefit our common customers."

Apple Computer, Inc., a recognized innovator in the information industry and leader in multimedia technologies, creates powerful solutions based on easy-to-use personal computers, servers, peripherals, software, personal digital assistants and Internet content. Headquartered in Cupertino, California, Apple develops, manufactures, licenses and markets solutions, products, technologies and services for business, education, consumer, entertainment, scientific and engineering and government customers in more than 140 countries.

Apple Canada Inc. is headquartered in Markham, Ontario and is a wholly-owned subsidiary of Apple Computer, Inc. Apple products are available at more than 300 Authorized Apple Canada Dealer locations across Canada.

Customer Information Contact: If you are considering the purchase of an Apple product and would like to have product information faxed to you, please call 1 (800) 263-3394 in Canada. If you do not have a fax machine or would like to locate an Authorized Apple Canada Dealer near you, please call 1 (800) 665-2775 extn. 450.

Apple, the Apple logo, and Macintosh, are registered trademarks of Apple Computer, Inc. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.
..

[mister_turtle]

This would be interesting.

[emirozmen]

If you say it enough, one day, it might become true!!!!!

[Palmless]

Anyone interested in what actually happened back then can read it here...

ZDNet "Stop the lies: The day Microsoft 'saved' Apple"

[Palmless]

Anyone interested in what actually happened back then can read it here...

ZDNet "Stop the lies: The day Microsoft 'saved' Apple"

Originally Posted by r.speziale

a) Why would Apple invest in RIM?
b) How could Apple's investment help RIM?
c) Would you welcome the investment?

Won't happen. When RIMM sells, the buyer will be either after the IP portfolio, what's left of the enterprise services business, or the brand to be used on very-low end emerging market feature phones.

Apple doesn't need anything from RIMM's IP portfolio. No way they would want to waste mental bandwidth on winding down BIS/BES, even though that could be a profitable small business for several years. And they aren't going to enter the high-volume, low profit feature phone race in emerging markets, even with the Blackberry name.

The RIMM buyer will do one, two or three of the above... leverage the IP, generate some cash while the services business dies over the next few years, or slap "Blackberry" on some $29 phones to differentiate themselves from Nokia, etc. in emerging markets.

[deRusett]

Apple COULD do exactly what Microsoft did,

They could pledge to create an iTunes App for the BlackBerry, and Port Apple created Apps to the BlackBerry Platform, in doing so they could create a cross license agreement with RIM for security technology to help Apple gain FIPS approval and integrate better with the RIM BES environment getting them ahead of Android which is very limited in it's FIPS approvals

After the Pledge to do this Apple would Purchase a stake in RIM, be it the 150million or some other abritrary number to show they are committed financially to RIM's growth,

Apple would be securing a Competitive product that doesn't completely encroach on their business, and RIM would have access to an ecosystem of content, Both company's would be fighting Android, which Apple is a fan of doing.

It's not about a buy out, but about making sure YOUR services keep getting sold, and you look like a good guy, it could work for Apple/RIM, but it would not be something I'd welcome as a BlackBerry user, but would as a RIM investor.

[sleepngbear]

Apple was hurting badly for cash at the time; not the case with RIM. (Yet.)

Edit: interesting proposition there, dR.

[deRusett]

Originally Posted by sleepngbear

Apple was hurting badly for cash at the time; not the case with RIM. (Yet.)

Edit: interesting proposition there, dR.

Apple wasn't hurting for cash, as much as hurting for support and confidence, which is exactly what RIM is hurting for,

They need support, and they need people to have confidence, they are a strong company, still generating positive cash flow even with massive inventory right downs, and they still have a growing customer base,

IF they were like Samsung, and didn't have to report quarterly numbers, nor have to deal with the Stock market the negative press wouldn't be nearly as harsh, and they wouldn't be doing AS BAD (they still wouldn't be doing great, because they still need to make competitive all touch products to meet the bulk of the market demand, AND an ecosystem, but those wouldn't be as challenging to get without the negative press)

[missing_K-W]

Apple.....The company that intentionaly through their buisiness model "dumbs down" basic functioning of a mobile device ,inorder to manipulate the consumer into believing they would have a better experience through "dumbed down computing", would be a great fit for RIM?

For one these two companies are tredging a future course in polar opposite directions.

RIM's vision- Bring near "desktop experience " to mobile devices. Major....major engineering feat....Slowly and surely this is unfolding.

Apples vision- "dumb down" , the desktop experience to compensate for mobile limitations.

IMHO RIM needs to target "strategic partnerships"....and work very closely with synergistic key partnerships.

[conix67]

Originally Posted by Palmless

Anyone interested in what actually happened back then can read it here...

ZDNet "Stop the lies: The day Microsoft 'saved' Apple"

Anyone even reading this? Urban myth busted.

A lot of interesting things happened back then.. very interesting.

So Microsoft did not give Apple a penny, let alone $150million, and Apple still had $2billion in cash. How can these stories still go around?

[mjs416]

Originally Posted by conix67

Anyone even reading this? Urban myth busted.

A lot of interesting things happened back then.. very interesting.

So Microsoft did not give Apple a penny, let alone $150million, and Apple still had $2billion in cash. How can these stories still go around?

Not sure why you are taking this as fact. Google results show pages and pages to the contrary. Unless you are playing semantics with the word "giving" and the word "investing". Not that I care either way.

[conix67]

Originally Posted by mjs416

Not sure why you are taking this as fact. Google results show pages and pages to the contrary. Unless you are playing semantics with the word "giving" and the word "investing". Not that I care either way.

How about providing some of those google links? So where are the *facts*?

If they had 2 billion in cash at the time, $150 million investment in *stocks* would hardly make any difference, and if it were part of patent settlement, there's no free giving in here at all.

[BBNation]

The thing is RIM does not need money, it has over 1.5 bln cash. Apple was going under and that is when MS helped..That is the only act I did not like about Bill..I hope MS does it again to RIM

[Palmless]

Originally Posted by sleepngbear

Apple was hurting badly for cash at the time; not the case with RIM. (Yet.)

Not the case...

Originally Posted by deRusett

Apple wasn't hurting for cash, as much as hurting for support and confidence, which is exactly what RIM is hurting for,

Correct.

As you can see above, the myth persists because people WANT it to have been true. They'll ignore people who were there, and well-sourced explanations, if it conflicts with what they want to believe.

You trot out Apple 10k filings and show them the balance sheets and that can't trump "I heard they was broke".

That's the internet.

[Palmless]

Originally Posted by missing_K-W

For one these two companies are tredging a future course in polar opposite directions.

AGREED. In so many ways.

LOL at "Bringing the desktop experience to mobile". That statement could shed customers by the tens of thousands if RIM admitted to it. But you are probably right... it's IT'sters who love the status quo and don't want to see end user computing democratized. Maintain the priesthood, we don't want just ANYBODY to know how to use these things!

We should be able to watch sales, cash, market share, stock price, and any number of other indicators to determine which is the successful strategy.