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RIM has gone south and will go East

Monday, 28 January, 2013

On Wednesday, in New York City, Research in Motion (RIM) will present the first phones based on its all-new BlackBerry 10 operating system (OS). Given the company’s near-death experience in recent years, these devices will be RIM’s most important products since the first BlackBerry was released in 1999. Since then, 200 million of the devices have been shipped. So Wednesday is a now-or-never moment for “Canada’s signature technology company“, as The Globe and Mail calls it.

Those who know the mobile business say that RIM has left it too late. Its tragedy was the complete denial of the need for a new OS following the introduction of the iPhone in 2007. Six years on, all is changed, “changed utterly“, as the poet said, and the real story now is about who’ll get which cut when the cooked Canadian goose is carved up.

“We are looking at all opportunities — RIM and many others,” Lenovo chief financial officer Wong Wai Ming told Bloomberg. “We’ll have no hesitation if the right opportunity comes along that could benefit us and shareholders.”

But maybe Samsung will pounce. The Koreans have shiploads of money and by buying RIM they’d acquire useful patents and, critically, a foot in the door of the enterprise market. However, if BlackBerry 10 turns out to be good, Sony, which makes excellent hardware, might be keen to get the kind of software that would allow it to become a serious player in the mobile business. RIM has gone south and the prediction here is that it will go East.

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