RIM Gasping for Air; Considering Switching to Windows

[dgstorm]

RIM must really be in its death throes and grasping for air, because a new report suggests they are considering following Nokia's strategy by adopting Microsoft's Windows mobile. This may be a very wise move on their part, but perhaps it's something they should have considered much sooner. According to a source at Reuters, RIM's board of directors is under enormous pressure to find a solution to their faltering business model. Basically, they need to come up with a new solution or the ship may sink. One option they are seriously considering is selling off their network business and forming a strategic partnership with Microsoft, in which they would sell BlackBerry devices that come equipped with the Windows Phone 8 operating system. Here's a quote with some additional details,

Specifically, the sources said that “Microsoft CEO Steve Ballmer had approached RIM in recent months, looking to strike a partnership similar to the one the software giant has with Nokia.” RIM has spent much of the past year working on BlackBerry 10, the newest version of its operating system that is seen as make or break for the company.

Unfortunately for RIM, their next BlackBerry 10 is delayed until next year, which may be far to late to make a difference against the Juggernauts of Android and Apple.

What do you guys think? Could this idea save RIM from it's impending demise?

Source: Reuters

 

[Skywaffle]

It is definitely a better approach to staying around a little longer. Not that Blackberry 10 is bad by any means; it is just too little too late; they spent too much time resting on their initial success, while Apple and Google were evolving the smartphone to something that typical consumers would want.

 

[J515OP]

Too little too late. I'm not sure it is going to save RIM and it certainly isn't clear that is has saved Nokia either. Maybe both together draws a lot more attention to the whole group and particularly for corporate support. If RIM and Nokia can convince Wall Street that they can hang on by doing this the three of them could make a big jump together and breathe some life into each other and WP in a pretty big way. If nobody buys this as a real fix though it will only delay the inevitable, just like Palm/HP.

 

[Skywaffle]

Agreed; Palm spent way too much time resting on its laurels with Palm OS. When everyone surpassed them, they started releasing Windows Mobile phones, and then WebOS, which was really quite nice, but by then everyone was satisfied with the efforts of Apple and Google

 

[Ollie]

Slap a Blackberry logo on a Windows OS and corporations will buy it.

 

[J515OP]

Slap a Blackberry logo on a Windows OS and corporations will buy it.

I'm not so sure this is true any more. I would like a WP for a work phone but I definitely would not go back to Blackberry hardware at this point. My company issues iPhones now (request for WP denied) and all data suggests that even die hard Blackberry users wont go back at this point. I'm not sure corporations can put the genie back in the bottle any more than anybody else can. They are simply old style devices. Users don't wan't Blackberries and I don't think it is just the software.

 

[dascrow]

I liked my black berry hardware back in the day. The track ball was awesome to have (also liked it on the Nexus One). I still think they have the best email service/app out there. I can see a Microsoft / Rimm partnership in a future.

 

[J515OP]

I liked my black berry hardware back in the day. The track ball was awesome to have (also liked it on the Nexus One). I still think they have the best email service/app out there. I can see a Microsoft / Rimm partnership in a future.

Yes, I think everybody can see why this could be an important relationship but can anybody really see people flocking back to traditional Blackberry hardware that was used back in the day? Yes, physical keyboards have their place for some users but even now people and companies are flocking away from Blackberries despite that "advantage". I don't think it is clear that the hardware will draw users regardless of the software (Windows) on it.

Of course RIM has some slightly more modern devices but none of it as compelling as what the competition has and RIM is showing no signs of leap frogging the market with something that will reinvent smart phone hardware. Nokia has a much better chance on the hardware front and will likely out last RIM for many reasons. RIM needed to make this move 2 years ago before they were completely abandoned by the Crackberry addicts desperately waiting for them to make something compelling on both the software and hardware fronts.

The services and the IP are all they have left. Windows on the hardware isn't enough to make it an asset that RIM can use to rebuild before having to split up. At least that is how I see it.

 

[J515OP]

Ha, timely announcement RIM CEO says nothing wrong with BlackBerry maker | Reuters. They are still in denial...

"Research In Motion Ltd's freshman CEO insisted on Tuesday that nothing is wrong with the maker of BlackBerry smartphones and that it certainly isn't in a "death spiral," even as the company's already battered stock edged toward new lows."

 

[Ollie]

I'm not so sure this is true any more. I would like a WP for a work phone but I definitely would not go back to Blackberry hardware at this point. My company issues iPhones now (request for WP denied) and all data suggests that even die hard Blackberry users wont go back at this point. I'm not sure corporations can put the genie back in the bottle any more than anybody else can. They are simply old style devices. Users don't wan't Blackberries and I don't think it is just the software.

Their new phone has no resemblance to their older hardware. It should have been released last year. So yes, I do believe that the Blackberry name alone can sell phones with a decent OS. Whether it be windows or iOS or Android. Corporations are never quick to move from one tech to the next.

 

[J515OP]

They have announced their new hardware and software won't be released until 2013 I just don't see people waiting around for them on the hopes that they may have something worth getting. That is why everybody is already leaving despite what little new hardware they have released, which doesn't stack up favorably in any case. Analysts have predicted the non-US countries where RIM has been able to keep selling (like Nokia) will see what is happening and will cut heir ties with their Blackberries in the next couple of months for fear of being left with a devices belonging to a non-existent company.

I don't wan't to see RIM go down but they are on life support in a hospital running on an emergency generator that is running out of gas. They still believe they don't have significant issues and that by delaying the release of their next "killer" phone (again) until it is ready sometime in 2013 will save them. Very scary thinking.

 

[JobsiteFish]

Well their updated models are going to have a hard time competing with the big boys.

Phones like the iPhone and Samsung s3 are already setting the bar pretty high. Now we got Windows 8 coming soon. They are going to need one hell of a phone.