[Homo Erectus]

BlackBerry (NASDAQ: BBRY) co-founder Jim Balsillie recently announced that he no longer owns any shares in the company. This information comes at a sensitive time for the company as it attempts a comeback with its recently launched BlackBerry 10. Clearly, this isn't a vote of confidence.

A Big Fall

When BlackBerry first introduced itself to the world, it was known as Research In Motion. The company's phones were nothing short of a phenomena. BlackBerries, in their day, changed the cell phone market in the same way that Apple (NASDAQ: AAPL) did with the iPhone. Customers were so addicted to BlackBerries that the phones were nicknamed CrackBerries, after the illicit and highly addictive drug.

Being on top was good for the company and its co-founders. They were strong willed and, for a time, were proven to be among the best in the game. Alas, they stuck to their guns for too long. When Apple introduced the iPhone, BlackBerry didn't do enough -- if anything at all -- to adapt.

While the company still had loyal followers, particularly in the business world, it essentially let competitors eat its lunch. Apple was the obvious beneficiary, but so was Google (NASDAQ: GOOG) and its popular Android operating system. Being on the other side of the equation wasn't particularly fun for BlackBerry or its shareholders.

The 10

Having slipped to also-ran status, the company's new BlackBerry 10 OS, and its accompanying new phone, are an attempt to get back into the big leagues. There are some decent touches in the new phone, though some question whether they're enough to make a difference. The slow rollout of the new phone has also raised eyebrows, since it won't be available in one of the company's key markets, the United States, until after it's out in a couple of other locales.

Regardless, the company's shares ran up in anticipation of BlackBerry 10's product launch. That a co-founder would take the opportunity to sell his shares isn't surprising. Moreover, stock gets sold for any number of reasons. So, it could have been a strategic move on Balsillie's part to find money for a new project.

Or it could have been a statement of his thoughts on the new product.

Similar to Apple

BlackBerry has some striking similarities to Apple. Unfortunately, most of them aren't good. Both Apple and BlackBerry have brought out transformational devices. However, Apple has historically proven more adept at repeating that level of success. BlackBerry did it only once.

Both companies, in the end, have to sell more of their own devices if they want to make more money. For Apple, sales figures are already high, so growth requires a notable increase in product sales. For BlackBerry, on the other hand, a low base gives it a better chance to impress.

The key thing, however, is that both companies keep things close to the chest. That means they are the sole determinants of their success or failure. For BlackBerry, which has become an also-ran in a highly competitive market, that's a big problem.

The Competition for Third

Right now, Google and Apple dominate the cell phone market -- Apple with its own products, and Google through its ubiquitous operating system. Samsung, while a notable competitor, is really building off of Google's position. There is no real competitor in third place. Thus, that's where the race is.

BlackBerry is hoping it can slide into that spot. However, it has stiff competition from the Nokia (NYSE: NOK) and Microsoft (NASDAQ: MSFT) combo. These two companies paired up to create the Lumia, a Nokia-designed phone based on Microsoft's mobile operating system.

The Lumia has gotten good reviews, and while sales have disappointed some in the United States, it has gotten off to a strong start for an also-ran product. The important thing to remember about the Lumia, however, is the purpose of the phone.

Nokia aimed to prove that it could still design a desirable phone. Without a doubt, the Lumia established that it hasn't lost its �chops.� For Microsoft, the phone was little more than a showcase of the power of its operating system. Once again, it got what it wanted.

The World is a Big Place

While the U.S. market is important, neither Nokia nor Microsoft need the Lumia to take off Stateside for the phone to be a success. For example, Microsoft has teamed up with Safaricom in Kenya and Bharti Airtel in Nigeria to run in-store training classes for people who buy the Nokia Lumia 510 or Nokia Lumia 620 Windows Phones. Moreover, Microsoft and Huawei are launching a new phone based on Microsoft's mobile operating system that is being specifically designed for Africa. And Nokia had a big advertising push, that it flubbed, in China for the Lunar New Year. Being in the United States is important, but it looks like that might just be to showcase both phone and operating system for other markets.

Blackberry, interestingly enough, isn't launching its new phone in the U.S. market. It is heading overseas first. While this may seem like a good idea to build momentum in markets that are still under served, the company doesn't have the foreign stronghold that Nokia does in developing markets and certainly doesn't have the presence of Apple or Google in developed markets. So many consider this an error in judgment for Blackberry. While only time will reveal the answer, the company certainly doesn't have many chances to get this big release right. And a flub in a foreign market will likely hurt its chances in the key U.S. market.

BlackBerry is trying be both the number three operating system and an important phone maker at the same time. It's a harder task to pull off and the company doesn't have the same strengths as Microsoft and Nokia to back up the effort.

Not A Vote Of Confidence - AAPL, BBRY, GOOG, MSFT, NOK - Foolish Blogging Network

[melb_me]

This guy is so wrong. They are trying to be the number one smartphone.

Posted via CB10

[sevenkingdoms2]

It's basically the same old story, repeated over and over again. If Jim is trading his shares solely based on the company perspective, he should have got rid of them two to three years ago. He got rid of his share last year because he does not want to be part of the company anymore. It is not related remotely to the performance of the company under the new leadership.

[Desktoper]

And in related news, today cavemen discovered fire...

[Shanerredflag]

Yup...old news and conjecture without fact, but hey...who needs truthful recent information anyway?

[geoffsdad]

Makes more sense when you realize it comes from the Foolish Blogging Network

[peter9477]

In related news about things that aren't votes of confidence in BlackBerry, the new Lara Croft "reboot" fails to show any BB10 devices in use during game play.

‘Tomb Raider’ finds gold in Lara Croft’s origin story - The Globe and Mail

This seems like a good thread for this, because it has as much to do with BlackBerry now as anything about Jim Balsillie.

[RubberChicken76]

Jim announced this? I thought it just appeared in a filing?

Guess his ex wife started asking for $$$

[docgasberry]

* Zzzzzz........... yawnnnn......*

Sorry ....I lost the plot in this piece of rambling non-facts. Who shot who?

[web99]

Jim Balsillie is old news. He has been gone from RIM/Blackberry for more than a year. At this point it is irrelevant what he does with his shares.

Posted via CB10

[Fuzzballz]

It is not related remotely to the performance of the company under the new leadership.

Just saw this thread. I highly doubt that opinion. If Balsillie thought that BB10 would turn around the company he'd at least keep his shares a few more months and make a whole lot more money as the stock rose.

The man's no dummy, he sold for one reason: money. Which can mean only one thing, he thinks the stock is going to drop.

[Jonesy1966]

It was almost a year ago that he off loaded his shares, it obviously has no bearing on anything BlackBerry has done since. It's like saying I sold my house last year because I didn't like what the city was going to do with it's new roads this year.

[peter9477]

It was almost a year ago that he off loaded his shares, it obviously has no bearing on anything BlackBerry has done since. It's like saying I sold my house last year because I didn't like what the city was going to do with it's new roads this year.

Someone in another thread said it would have to have been some time during October through December that he closed his position, as it would have required an earlier filing if he had been totally out before October. (I don't know whether that's true, I'm just reporting what someone else said. It would exclude "almost a year ago" if true.)

[Fuzzballz]

Yes it was toward the end of 2012 or we would have heard about it months ago. Dumping that many shares is going to cause the price to drop, but he probably got anywhere from $11 to $13 per share if he did it in late-Nov or December. If he did it in October he got screwed. Possibly had to do with end-of-year tax stuff too. But either way, he doesn't think the stock is going to do much or he would have held onto it.

[bintheredundat]

Did u guys hear he's trying to buy an nhl team?


:s

Posted via CB10 on my Z10 Oreo

[sevenkingdoms2]

Quote "The man's no dummy, he sold for one reason: money".

By that logic, he should have sold when the stock was around 150. There was no rule to prevent it.

[anon(153966)]

Sorry who's Jim? LOL - like others have said, old news and he really doesn't matter. BlackBerry will make its mark again. Guaranteed...

[trsbbs]

Jim chased after a hockey team for years so yes, I doubt his wisdom in the ways of making money.

What he thinks, says or does matters not.

Tim

This is the guy that called the Playbooks web browser a "web thingy" on TV.

Sent from my BlackBerry 9850

[Zarpan]

Yes it was toward the end of 2012 or we would have heard about it months ago. Dumping that many shares is going to cause the price to drop, but he probably got anywhere from $11 to $13 per share if he did it in late-Nov or December. If he did it in October he got screwed. Possibly had to do with end-of-year tax stuff too. But either way, he doesn't think the stock is going to do much or he would have held onto it.

I believe the requirement was for him to file the Schedule 13G form within 45 days of calendar year end. He filed at the end of that period, but the share disposition could have occurred any time from when he left the Board of Directors to the end of 2012 (so from April to December). I could be wrong since I'm not too well versed in the filing requirements, but that's my understanding from a quick read about Schedule 13G.

[RubberChicken76]

Jim chased after a hockey team for years so yes, I doubt his wisdom in the ways of making money.

The man made billions of dollars so he's obviously a lot better at it than you!

[joe.miller]

The man made billions of dollars so he's obviously a lot better at it than you!

Granted, but that was the past. If he had any clue as to the future of mobile, he'd still be CEO. So as of right now, I don't really care what he thinks about the chances of BlackBerry being successful again.