[01itr]

BlackBerry-Maker RIM Left in

Research In Motion Ltd. (RIMM), maker of the BlackBerry smartphone and PlayBook tablet computer, may have the most to lose from Google Inc. (GOOG)�s deal to acquire Motorola Mobility Holdings Inc.

Google�s proposed $12.5 billion acquisition would leave RIM a smaller player relative to rivals, which may force it to strike an alliance with another company or sell itself to remain competitive, said Will Stofega, a program director at consultant IDC. With Google�s cash and software expertise, Motorola may present a direct challenge to RIM in its traditional stronghold, the corporate market, he said.

�Now that Motorola has a big war chest behind them, Research In Motion has got to watch out,� Stofega said in an interview.
Already losing market share in smartphones, RIM is seeing several competitors beyond Google and Motorola gain scale and expertise. In February, mobile-phone maker Nokia Oyj struck a strategic partnership with Microsoft Corp. (MSFT), the world�s largest software maker. Last year, Hewlett-Packard Co. (HPQ), the world�s largest computer company, bought handset maker Palm Inc. Apple Inc. (AAPL), maker of the iPhone, briefly became the world�s most valuable company last week, though it hasn�t made major acquisitions.

RIM may need more size and software expertise to compete, said independent wireless analyst Chetan Sharma. The Waterloo, Ontario-based maker of BlackBerrys may have to sell to a company such as Hewlett-Packard, Dell Inc. (DELL), Samsung Electronics Co. or HTC Corp. (2498), he said.

�They are in no man�s land at this point,� Sharma said in an interview.

Falling Share

Marisa Conway, a spokeswoman for RIM, declined to comment on the record about the Google deal or the prospect of an acquisition. Michael Thacker, a Hewlett-Packard spokesman; Kim Titus, a Samsung spokesman; and Jess Blackburn, a Dell spokesman, also declined to comment. HTC couldn�t be immediately reached for comment

RIM is losing market share as consumers turn to mobile phones that can run games, surf the Web and handle other computing tasks. The company�s share of the global smartphone market fell to 12 percent in the second quarter, from 19 percent a year earlier, according to Gartner. Android became the world�s leading mobile-phone operating system over the same period, rising to 43 percent of the market. Apple climbed to 18 percent, from 14 percent a year earlier, Gartner said.

RIM shares had dropped 53 percent this year before today. The stock rose $2.55, or 10 percent, to $27.11 yesterday on the Nasdaq Stock Market.

Patent Battle

RIM�s rise on the Google news may indicate investors think the chances of an acquisition are increasing, said Peter Misek, an analyst with Jefferies & Co. Inc. Though the company has been struggling, it has a strong base of corporate customers and valuable patents, he said.

As handset makers have sued each other over patents, intellectual property has emerged as critical asset in mobile- computing competition. A group of companies including Apple and RIM agreed to spend $4.5 billion this year to buy Nortel Networks Corp.�s patent portfolio. The BlackBerry maker holds 2,033 patents, pertaining to everything from mobile security to e-mail, according to the U.S. Patent Office.

Google said Motorola�s intellectual property was one motivation for the acquisition. Motorola, which pioneered the mobile-phone business, has more than 17,000 patents, which will help Google and Android supporters in possible legal disputes.
Google�s move may prompt Apple, Samsung or Microsoft to go after RIM for its intellectual property, Misek said.

�Bulk Up�

�Apple has to respond, in my view, and to bulk up its patents a little more,� Misek said in an interview. �They have cash. There has to be a response. So do Microsoft and Samsung.�

Apple spokeswomen Natalie Harrison and Trudy Muller didn�t immediately return messages seeking comment. A spokesman for Microsoft declined to comment.

As a patent holder, RIM may be a less attractive acquisition target than other wireless companies, Michael Mahoney, senior managing director at Falcon Point Capital LLC, said in an interview.
�RIM is losing in the marketplace in the developed world,� Mahoney said. �In my view, RIM is highly unlikely to emerge a winner in the technology race. I don�t think their patent portfolio is likely to cover the most cutting-edge technology. The breadth of what Motorola has developed is orders of magnitude higher.�

Investor Pressure

Investors and analysts have called on RIM to change strategy as it loses ground. In June, shareholder Northwest & Ethical Investments LP proposed splitting the roles of chairman and CEO at RIM to increase board oversight, though the firm later withdrew the proposal to provide time for further study. In July, Mike Abramsky, an analyst with RBC Capital Markets in Toronto, said the company should consider strategic options, such as splitting its network and handset businesses.
In July, the company announced plans to cut 2,000 jobs, or about a tenth of its workforce. In August, the company announced three new versions of its BlackBerry smartphone in an effort to regain traction.

RIM�s most logical partners are Microsoft and Samsung, said Tavis McCourt, an analyst with Morgan Keegan in Nashville. Still, RIM may not yet be willing to change from its existing strategy, he said.

�RIM�s management needs to come to the conclusion that they need a partner and I�m not sure that�s happened yet,� said McCourt in an interview. �Long term, everybody is looking for a dance partner and RIM had better find one. This is getting to be a business where you need to be really big to compete.�

I'm sorry but I can't believe this at all... I don't see how this affects RIM that much. How do they expect Google owning Motorola now to suddenly mean Google is going to take over the enterprise market? Their software is still shoddy and full of security holes, that hasn't changed.

[southlander]

What would be interesting (just a wild idea) is if:

Google plays favorites with Android and ticks off say HTC. There is some speculation in the press about that (and Samsung).

HTC decides that instead of using WP7 as a hedge...

They'll merge with RIM and push the QNX devices.

RIM + HTC. RIM gets resources and some extra design saavy (Android engineers too), and HTC gets enterprise respect, QNX and *patents*.

[Economist101]

I'm sorry but I can't believe this at all... I don't see how this affects RIM that much. How do they expect Google owning Motorola now to suddenly mean Google is going to take over the enterprise market? Their software is still shoddy and full of security holes, that hasn't changed.

Who said anything about the enterprise market? Was it even mentioned in the article?

[drjay868]

BlackBerry-Maker RIM Left in

I'm sorry but I can't believe this at all... I don't see how this affects RIM that much. How do they expect Google owning Motorola now to suddenly mean Google is going to take over the enterprise market? Their software is still shoddy and full of security holes, that hasn't changed.

Obviously, Motorola knows more about security in the enterprise world because of their 17000+ patents vs RIM's 2,033. That's why Motorola phones with Android are so much more secure than any other phone with Android.

/sarcasm

[lnichols]

BlackBerry-Maker RIM Left in



I'm sorry but I can't believe this at all... I don't see how this affects RIM that much. How do they expect Google owning Motorola now to suddenly mean Google is going to take over the enterprise market? Their software is still shoddy and full of security holes, that hasn't changed.

Exactly. I don't see how the maker of an OS buying one of the many OEM's that use that OS is suddenly going to catapult Android into the Enterprise market. Same phone, same OS. I also don't get how RIM needs to have someone out there waiting to buy them. I don't think that any single Android OEM sold more Android based phones than RIM sold Blackberry's last quarter. When a market rapidly expands, and more players are in the game, then the company that had the most is almost certainly going to lose the most. Now that RIM has product to sell after the drought on the phone side, and if they can grow and can execute QNX to take off then they will be making lots of money with no debt (like now) and they will be fine.

[drjay868]

Who said anything about the enterprise market? Was it even mentioned in the article?

Second paragraph:

Google’s proposed $12.5 billion acquisition would leave RIM a smaller player relative to rivals, which may force it to strike an alliance with another company or sell itself to remain competitive, said Will Stofega, a program director at consultant IDC. With Google’s cash and software expertise, Motorola may present a direct challenge to RIM in its traditional stronghold, the corporate market, he said.

I think its reasonable to read corporate = enterprise.

[mjs416]

RIM + HTC. RIM gets resources and some extra design saavy (Android engineers too), and HTC gets enterprise respect, QNX and *patents*.

Would be interesting to see something like that pan out. HTC appears to have its ear to the ground with the consumer phone market (probably moreso than any other single manufacturer - any android phone I seem to come across is a HTC whether it be the thunderbolt or the evo). Couple that with RIM's corporate end and you would be able to cover all your bases.

Mix in a game changing OS like QNX and things would really take off.

[Kansas City Mack]

Mix in a game changing OS like QNX and things would really take off.

Why does everyone keep using terms like "game changing" and "revolutionary" in reference to QNX? It's pretty nice but the Playbook is definitely not a "game changer", nor is it "revolutionary". Yet people in here, for whatever reason, use these buzz words and they are somehow accepted as fact.

[Economist101]

I think its reasonable to read corporate = enterprise.

Fair enough, though I don't think it's reasonable to read "direct challenge" = "take over."

[Economist101]

Why does everyone keep using terms like "game changing" and "revolutionary" in reference to QNX? It's pretty nice but the Playbook is definitely not a "game changer", nor is it "revolutionary". Yet people in here, for whatever reason, use these buzz words and they are somehow accepted as fact.

Maybe it's "game changing" in that it's a revolutionary product which doesn't sell.

[orgonebox]

What is it with analysts and their speculative race to the bottom of a two-choice coke vs. pepsi world? Does it all end with an "only two teams get to go to the super bowl, and that's how it is" mentality? It would be sweet if RIM had a partner with better marketing and consumer appeal, or put out an Android phone with a blackberry keyboard just to show how it's done. However, nobody mentions that $600 million in a quarter is nothing to sneeze at. Maybe fantasy football has a place in the world after all.

[Kansas City Mack]

Maybe it's "game changing" in that it's a revolutionary product which doesn't sell.

I guess technically, by definition, it's changing RIM's game.

[drjay868]

Fair enough, though I don't think it's reasonable to read "direct challenge" = "take over."

Agreed, although I think the point of the article, in not so many words, is that if RIM doesn't sell to or merge with another company, they will take over.

[drjay868]

Besides, I still don't understand how the acquisition of Motorola will make them any more of a player in the enterprise/corporate market. I just think it means that Google may now have a way of making sure you get the best possible Android experience on a Motorola handset by not skimping out on cheap hardware.

[drjay868]

Why does everyone keep using terms like "game changing" and "revolutionary" in reference to QNX? It's pretty nice but the Playbook is definitely not a "game changer", nor is it "revolutionary". Yet people in here, for whatever reason, use these buzz words and they are somehow accepted as fact.

Its only those things if its done right. The initial build was done right as a brand new OS just getting started, IMHO, but the support and continued development/evolution of the platform has been seriously lacking.

[flyersfan76]

Does this Motorola "MOBILITY" acquisition bring ALL of Motorola's patents.

When RIM bought QNX did they somehow get access to a patent that will allow them to put a better speaker system in their products or somehow turn the Playbook into a high fidelity multi-room 7.2 surround sound speaker system.

The media keeps talking about "Motorola" and nothing else. Is google now going to be on my cable box and inventory scanners used in places like target, supermarkets, etc?

[daveycrocket]

A different view
Reuters | Interactive Investor

[mjs416]

Why does everyone keep using terms like "game changing" and "revolutionary" in reference to QNX? It's pretty nice but the Playbook is definitely not a "game changer", nor is it "revolutionary". Yet people in here, for whatever reason, use these buzz words and they are somehow accepted as fact.

Show me another tablet OS that has the power of the PB. Android Honeycomb? Hardly.

[Kansas City Mack]

Show me another tablet OS that has the power of the PB. Android Honeycomb? Hardly.

Seriously, what is this great "power" that you speak of? You may have to dumb it down for me so I can understand.

[01itr]

Seriously, what is this great "power" that you speak of? You may have to dumb it down for me so I can understand.

That's Apple's job.

I always wonder why you come on these forums if all you do is troll and bash on RIM.

Please leave this thread alone and let us stay on topic.

Thanks.

[Rickroller]

Seriously, what is this great "power" that you speak of? You may have to dumb it down for me so I can understand.

Perhaps it has Jedi mind powers..to make you forget that it was a rip-off of WebOS, and that the checkerboarding you see ISN'T actually checkerboarding, but rather the lights you see when transitioning into warp speed ala Star Trek

[Kansas City Mack]

That's Apple's job.

I always wonder why you come on these forums if all you do is troll and bash on RIM.

Please leave this thread alone and let us stay on topic.

Thanks.

OK, I'll bite. All you do is sings RIM's praises. I'm here to provide balance to this blindly sickening love fest that is Crackberry. Now, would you like to answer my initial question, or are you just here to bash me for speaking the truth?

[Dapper37]

Everything this guy is saying has been said before, 1000 times, the turn around in RIM is well underway, Yesterdays DOG is todays Underdog is tomorrows star. But it takes time. I'm more than happy if RIM sticks it out alone. Or if they bought up some more talent.

[undone]

Depending on what Google does with this will depend on what will happen in the smart phone arena. Overall this a smart move by Google who was on the short end of the patent stick and getting sued all over the place. Recall the recent purchase of patents?

The companies that have to sweat this are the non-motorola manufacturers. If they have to license the OS that will just put them in a position to shop around. That could mean an uptick in HP WebOS and or Windows Mobile. Rim and Apple are closed systems at the moment.

Smart move for Rim, license out QNX. If you cant make phones people will buy, at least make an OS manufacturers want to use.

[avt123]

That's Apple's job.

I always wonder why you come on these forums if all you do is troll and bash on RIM.

Please leave this thread alone and let us stay on topic.

Thanks.

Why are you bashing another company to try and prove your point that the PlayBook has a powerful OS?