RIM: Signs of rebound brewing?

RIM: Signs of rebound brewing?

Summary: Surprise! Google's Motorola Mobility purchase and new products make RIM look much better than it did just a week ago.

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Research in Motion's latest BlackBerry devices have landed and the latest events in the wireless industry---notably Google's acquisition of Motorola---have helped the company's standing in short order.

First, BlackBerry has its long-awaited new product cycle rolling. ZDNet's Matthew Miller gives the latest BlackBerry devices---based on BlackBerry OS 7---a thumbs up and calls the line-up RIM's best effort. What about those QNX-based superphones that will give the BlackBerry 7 devices a short shelf life? Miller argues that the latest devices will be a good choice for at least a year.

CNET also gave the latest BlackBerry Torch on Sprint a solid review, but was mixed on the AT&T version.

Much needed product cycles aside, the real gain for RIM may come from disruption in the Android market. Google acquired Motorola for $12.5 billion in a deal that locks down patent protection for Android, but could alienate HTC and Samsung in the long run. Google said it will run Motorola independently and keep Android open source, but the devil will be in the details (see CNET News roundup).

Sterne Agee analyst Shaw Wu said that RIM can benefit from the Google-Motorola deal. Why? First, RIM becomes a lot more valuable as an acquisition target. Microsoft and HP would be potential buyers. However, Microsoft's acquisition of RIM would be a long shot given a partnership with Nokia.

Wu said in a research note

We believe RIM could benefit from potential disruption in the Android ecosystem as Google integrates its acquisition of Motorola Mobility and there could be a potential eruption of a civil war. In addition, from our conversations with carriers, they would love to see a stronger No. 3 supplier in mobile phones. And the reason is that many of them are growing concerned with the growing dominance of Google and Apple. We believe Windows Phone will benefit as well but RIM is arguably in a stronger position given its independence and incumbent position as the No. 3 player.

National Bank Financial also upgraded shares of RIM because the company is a takeover target and has a treasure trove of patents.

Wu still has his reservations about RIM's product cycle as well as transitions from the BlackBerry 7 operating system to QNX next year. Toss in concerns about bill of materials for RIM and there are significant questions.

Nevertheless, the ball seems to be bouncing RIM's way a bit. If the new BlackBerry devices get any traction, RIM's standing will improve dramatically from just a few weeks ago.

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Topics: BlackBerry, Google, Mobility, Security

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44 comments
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  • RE: RIM: Signs of rebound brewing?

    "the company is a takeover target and has a treasure trove of patents"

    Didn't they lose big time to a patent troll a while back?
    wkulecz
    • RE: RIM: Signs of rebound brewing?

      @wkulecz Unless RIM had a patent on patent trolling, you can't use other patents to protect yourself from patent trolls.
      jgm2
      • RE: RIM: Signs of rebound brewing?

        @jgm@... actually, having your own portfolio of patents DOES protect you from patent trolling. Due to the gross incompetence (or willful malfeasance?) of the US Patent Office, multiple patents are regularly granted to different parties for the same thing, especially software patents. If the patent troll decides to attack saying you are violating their patent XYZ, if you have a deep-enough patent bench, you stand a good chance of being able to counter-attack with 'well we have patent QRS which your patent violates, so we'll sue you!' ... that's how the game is currently being played. So again, you actually CAN use other patents to protect yourself from patent trolls. It shouldn't be that way, but the US Patent Office is grossly incompetent.
        Gravyboat McGee
      • RE: RIM: Signs of rebound brewing?

        @Tivolier@... Actually, patents don't protect you from patent trolls. They protect you from other patent holders who actually make products. Then you swap patent licensing deals with the other company by threatening their products with your own patents. Patent trolls don't actually make or sell anything. They just buy and hold patents. When a patent troll sues, they don't have to worry about any of their products violating the patents of others, because they don't have any products. So, you can't threaten their products with your own patents.
        BillDem
    • RE: RIM: Signs of rebound brewing?

      RIM should strongly consider using the Android OS with the RIM messaging service as an app accessible via the OS. RIM needs more touchscreen smartphones, smartphones with keyboard sliders, and continue to make the legacy candybar-style phones (Bold, Curve).
      jlt0x
  • This is good news for everyone!

    We need more competition to make the mobility market interesting and a healthy RIM will be a big step in the right direction I think:)

    Pagan jim
    James Quinn
    • Yeah, but RIM is a 300lb chain smoker.

      @James Quinn That company is a walking corpse. Inertia will carry them on for another couple of years, until someone picks them up for a song to get their IP. Their problem is that they've taken "dance with the girl that brung ya" to the extreme. The fact is that RIM doesn't know anything about smartphones, they only know about Blackberries.
      matthew_maurice
      • RE: RIM: Signs of rebound brewing?

        @matthew_maurice RIM "RIM doesn't know anything about smartphones" JAJAJAJAJAJAJAJAJAAJA
        SinfoCOMAR
      • Which planet have you landed form?

        @matthew_maurice <br><br>I'm sick of reading this rubbish from trolls and folk ignorant of anything they dont own. Get a life and let others work with what they have. FYI they have the most secure platform, not for criminals but for anyone. They DO need to get the product lineup sorted and get rid of the overlap in devices but to suggest a 'walking corpse' is just so utterly stupid. <br><br>I have faith in most companies/products to survive, even new ones like HP webos. Not because they deliver more than xxx but because the market is changing so fast, so much. Open, but secure, access to corporate data is going to be MEGA in the next 18 months. Forget your piddling/trifling needs of a 50p app..... that's of no interest to anybody. We're looking at MILLIONS of folk accessing corporate world from ANY handheld/mobile device they like. Get your head round that, and forget the penny apps. Look at the big picture. Plenty of scope for everyone to choose what works for them. And it's very nearly here!
        johnmckay
      • RE: RIM: Signs of rebound brewing?

        @matthew_maurice If Apple increases the security of the iPhone to match the Blackberry, then RIM will indeed be in trouble. Right now, the leaders at RIM are only treading water while struggling to sort out the best direction to swim. If they finally focus their vision, they could easily make the world's most amazing comeback simply because of their enterprise entrenchment. Time will tell.
        BillDem
  • Rim rebounding? Apple doesnt think so.

    Waterloo is one of the smallest Canadian cities in which Apple has opened a store, but you wouldn?t know it from its opening day lineup.

    More than 200 people waited in line Saturday morning for the official opening of the company?s newest Canadian store in Waterloo, located in Conestoga Mall, just a 10-minute drive from RIM headquarters.
    Bodazapha
    • RE: RIM: Signs of rebound brewing?

      @Bodazapha So what? People don't go to the RIM HQ to buy BB's do they? It's a moot point.
      Bates_
    • RE: RIM: Signs of rebound brewing?

      @Bodazapha
      Lol 200 idiots showed up even in that little town. Its like bugs to a azapper light they see their friends get killed but still flock to the light without using their brains lol
      Fletchguy
      • RE: RIM: Signs of rebound brewing?

        @Fletchguy very good analogy and it aptly fits Apple.
        sandeeppolisetty
      • I like that!

        @Fletchguy

        I'm gonna use that.. unless you've patented it first of course :-)
        johnmckay
      • RE: RIM: Signs of rebound brewing?

        @Fletchguy

        Your posting history makes it quite clear that you are not one to talk about not using one's brain.

        @sandeep.splash

        Based on what evidence, pray tell? I suspect that one could make a far better claim of lemming status to the users of the OS with 89% of the market. Especially since the VAST majority of iPhone and iPod owners are Windows users, your point is both without foundation, and dumb.
        .DeusExMachina.
    • RE: RIM: Signs of rebound brewing?

      @Bodazapha i think so too. http://www.nagelstudiohamburg.net/galerie.html
      Nagelstudio in Hamburg
  • RE: RIM: Signs of rebound brewing?

    No 4g, is there a browser fix? I'm still waiting on my 8900 to run some flash crap it can't get through....
    BBerry messenger = who cares, and wvga? It's a 10 months ago phone, and it loses the thing I love most about my 8900, the keyboard.
    BBerry app world? ahem.
    Why is it better than the universally despised Storm?
    OhDee1
    • RE: RIM: Signs of rebound brewing?

      @jeft2k@...

      The lack of Flash support for Blackberries is the fault of Adobe, not RIM. Adobe has said that they are 'working on' Flash player for Blackberry for the last 5 years, and appear to have made zero progress. RIM isn't doing anything to block it, Adobe is simply inept.
      Doctor Demento
      • RE: RIM: Signs of rebound brewing?

        @Doctor Demento Probably because they realize developing flash for blackberry is a waste of time and a dead end?
        xSteven777x