1. sleepngbear's Avatar
    Finally a reasonable opinion from Motley Fool. I thought I'd never see the day.

    The Sky isn't Falling on RIMM - AAPL, RIMM - Foolish Blogging Network

    When see one of these on Forbes, that will be my proof that the Mayans were right.
    05-11-12 10:16 AM
  2. kae77's Avatar
    The Sky isn't Falling on RIMM
    By Moustafa El Zanaty - May 11, 2012 | Tickers: AAPL, RIMM | 10 Comments

    Moustafa is a member of The Motley Fool Blog Network -- entries represent the personal opinions of our bloggers and are not formally edited.

    The sky really isn’t falling at RIMM.

    After their much talked about developer conference in Orlando where Research in Motion (NASDAQ: RIMM) released a prototype of their new BB10 phone, RIMM has been beaten down in the market. The conference was seen as a pivotal point in the future of the company and many felt they needed to show some game changing technology to avoid being relegated to the tech graveyard that has claimed the likes of other once dominant companies like Polaroid. Following the conference the media has been singing a very familiar tune of “to little too late” and the fact that the BB10 doesn’t seem to have any game changing capabilities unavailable in the competing iPhones and Android based smart phones.

    The market is treating RIMM like Galileo was treated by the Roman Inquisition. When he said that the universe didn’t revolve around the Earth he was forced to recant and spent the rest of his days under house arrest. It seems to me the media believes that the market revolves around Apple and to oppose that concept is heresy. The concept that RIMM must dominate in the North American market, specifically the United States and Canada, or the company is worthless is so far from reality it makes the Roman Inquisition look like rationale scientific discourse. RIMM has been sent to media purgatory where it remains getting poked by little red men with pitch forks regardless of what it does.

    I will be completely honest and may I be struck down by some iThunder if I am lying, but I prefer the Blackberry to the iPhone. I don’t enjoy the lack of a QWERTY key pad and the fact the iPhones auto correct makes me sound like I have a lisp when I text. A “me too” offering by Blackberry would be music to my ears as I would surely pick up the new device. I am not alone either as I have met people who feel the same way and have actually switched back to their once beloved Blackberry. Understanding that we are not the majority, I am not trying to convince anyone that Apple (NASDAQ: AAPL) doesn’t make good products. In fact I am a big Apple fan and have several other Apple products including an iPad. I also am very bullish on Apple shares in the short term and see the company hitting 1000$ in the near future. What I’m saying is that as RIMM generates a good portion of their revenue from Smartphone sales, I don’t see this business as dead or even dying. They are growing their market share in parts of the world much more populated than the United States. Their ability to offer data compression over their proprietary networks and therefore much cheaper data plans in countries where the networks are much slower than North America is driving their business. In countries where the switch from 2G to 3G is underway the speed of the iPhone and Android devices is severely limited.

    Imagine that in some major markets RIMM actually outsells Apple when it comes to smartphones. Take a second and put your iLaser down and actually look at some numbers before you zap me. RIMM sold just over 5 times as many Blackberries as Apple sold iPhones in Latin America. They sold over 3 times as many phones as Apple in the Middle East and it is estimated they have a 50% market share in Indonesia. A 15% market share in India lands RIMM in third place in a market almost the size of Canada, the United States and the E.U. combined. The company earned 1.1 billion dollars in 2011 and has no debt; they are releasing an updated version of their Smartphone and still have the most secure proprietary network in the world. RIMM has most definetly made some costly mistakes in the last couple years and has hurt their brand immensely in certain markets, but they have been able to grow in many others.

    I truly believe that RIMM will have a turnaround and are in the process of not only improving their product offerings but are still growing their business in markets throughout the world. The Canadian and American media have been on a hunt for RIMM shooting down everything and anything they have done in the last 24 months. It has sent RIMM`s shares tumbling to the point where its P/E of just over 5. They have shaken up their management team, are releasing a whole new line of devices over the next couple months and will ride this storm out.
    For those who don't want to click.
    05-11-12 11:15 AM
  3. Thunderbuck's Avatar
    Honestly, this sums up my opinion of RIM pretty much perfectly.

    I'd add to that some clear, strong reasons to believe that the platform they are moving to shows a lot of promise from both technical and business standpoints. Obviously, we'll have to wait for the market reaction to BB10, but I completely agree with the title of this piece.
    anon(3896606) likes this.
    05-11-12 12:08 PM
  4. BaconMunch's Avatar
    Can you believe the same media says it's more reasonable for AAPL (currenty at $568.82) to double than RIMM?
    05-11-12 02:04 PM
  5. OzarkaTexile's Avatar
    "I will be completely honest and may I be struck down by some iThunder if I am lying, but I prefer the Blackberry to the iPhone. I don’t enjoy the lack of a QWERTY key pad and the fact the iPhones auto correct makes me sound like I have a lisp when I text. A “me too” offering by Blackberry would be music to my ears as I would surely pick up the new device. I am not alone either as I have met people who feel the same way and have actually switched back to their once beloved Blackberry"

    Next BlackBerry device will have no keyboard and autocorrect. How is that helpful?
    05-11-12 02:09 PM
  6. sleepngbear's Avatar
    Next BlackBerry device will have no keyboard and autocorrect. How is that helpful?
    Do you have any cognitive skills at all beyond mouthing the words all those little white letters spell?
    OzarkaTexile likes this.
    05-11-12 02:35 PM
  7. Thunderbuck's Avatar
    "I will be completely honest and may I be struck down by some iThunder if I am lying, but I prefer the Blackberry to the iPhone. I don’t enjoy the lack of a QWERTY key pad and the fact the iPhones auto correct makes me sound like I have a lisp when I text. A “me too” offering by Blackberry would be music to my ears as I would surely pick up the new device. I am not alone either as I have met people who feel the same way and have actually switched back to their once beloved Blackberry"

    Next BlackBerry device will have no keyboard and autocorrect. How is that helpful?
    RIM is not abandoning keyboards. Bold 9900 replacement due in Q1 next year, so it's not such a long wait after the full-touch phone launches.

    Had RIM released the keyboard phone first, the analysts would have screamed about how out-of-touch they are.

    Blackberry's autocorrect is already much better than Apple's, BTW...
    05-11-12 02:37 PM
  8. OzarkaTexile's Avatar
    Do you have any cognitive skills at all beyond mouthing the words all those little white letters spell?
    Yes


    RIM is not abandoning keyboards. Bold 9900 replacement due in Q1 next year, so it's not such a long wait after the full-touch phone launches.

    Had RIM released the keyboard phone first, the analysts would have screamed about how out-of-touch they are.

    Blackberry's autocorrect is already much better than Apple's, BTW...
    I understand that RIM is not giving up on keyboards. And they may implement an autocorrect that's much better that anything else out there.

    But the article writer says don't give up on RIM because some people prefer their products to Apple (and I presume Android touch screen devices.) Yet RIM is staking their future on a touch screen OS. I'm not claiming that RIM is mimicking Apple, but RIM is moving away from their roots to follow where the market has already gone. Microsoft, Android, Apple moved to a world of all touch screen devices with app stores and WebKit browsers (except for Microsoft) and RIM is right there with them.

    Where's the differentiation?
    05-11-12 02:47 PM
  9. Thunderbuck's Avatar
    I understand that RIM is not giving up on keyboards. And they may implement an autocorrect that's much better that anything else out there.

    But the article writer says don't give up on RIM because some people prefer their products to Apple (and I presume Android touch screen devices.) Yet RIM is staking their future on a touch screen OS. I'm not claiming that RIM is mimicking Apple, but RIM is moving away from their roots to follow where the market has already gone. Microsoft, Android, Apple moved to a world of all touch screen devices with app stores and WebKit browsers (except for Microsoft) and RIM is right there with them.

    Where's the differentiation?
    There's no "roots" in this device category for RIM to move away from. They've really only been producing full-blown smartphones for a few years, and as far as that goes, there are many buyers who not only think that keyboard BB phones are antiquated, they don't even know that there are full-touch Blackberrys available now.

    For BB users who still DO want a keyboard, there will be a keyboard phone. Stressing the full-touch BB10 first is a good strategy, though, because it may make some of the public view Blackberry differently.

    As for differentiation, sure, there are a couple of form-factors that the manufacturers are settling on, so there is probably less variety in the actual physical device in the long run. Where BB10 differs is in its UI (which looks very clean, slick, and, yes, different from both Apple's and Android's). There is some suggestion that BB10 will extend the notion of gesture-based navigation out to not just finger-swipes, but the way the phone itself is handled. If that works, it would be quite different.

    And, for some customers, the fact that it just isn't Apple will be difference enough.
    05-11-12 02:57 PM
  10. o4liberty's Avatar
    Unfortunately bad press can hurt a company's sales and this is why RIM needs to get out there and market themselves better. With the information highway so fast today words are very powerful tools in the business world.

    Sent from my BlackBerry 9930 using Tapatalk
    Stewartj1 likes this.
    05-11-12 03:10 PM
  11. Stewartj1's Avatar
    unfortunately bad press can hurt a company's sales and this is why rim needs to get out there and market themselves better. With the information highway so fast today words are very powerful tools in the business world.

    Sent from my blackberry 9930 using tapatalk

    +1!! .
    05-11-12 03:33 PM
  12. Mystic205's Avatar
    he validly indicated he was not a zealot and saw upside in appl..

    he made no reference whatsoever to any upside stock price of RIMM other than to state that RIMM was trading at 5:1 p/e.. and was wise not to do so...

    i would add that that is 5:1 in a market that is typically 25:1..

    Can you believe the same media says it's more reasonable for AAPL (currenty at $568.82) to double than RIMM?
    05-11-12 04:24 PM
  13. Thunderbuck's Avatar
    Unfortunately bad press can hurt a company's sales and this is why RIM needs to get out there and market themselves better. With the information highway so fast today words are very powerful tools in the business world.

    Sent from my BlackBerry 9930 using Tapatalk
    It's hard for them to "market themselves" to the public when they have no new products. There is a continuing marketing effort to enterprise/institutional customers.

    What RIM seems to be putting a lot of "marketing" resources into is Developer Relations, and it makes a lot of sense. With a new platform coming, they want as many developers on board as they can get.
    05-11-12 05:18 PM
  14. RicZoh's Avatar
    I'm one of the few people I work with that still carries a BB (Which I love BTW).

    I often tell my iPhone carrying coworkers that their phone is really only popular in one part of the world. I ask, Do you know what else is real popular in one part of the world? David Hasselhoff. You are using the David Hasselhoff of phones.

    Thanks for the link to the article. I know several people who are about to get an email.

    Sent from my Magical BlackBerry Bold 9900
    05-11-12 05:47 PM
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