CEO Thorsten Heins is not really saying anything new here. After having practically disappeared in the shadows of Apple Inc. (NASDAQ: AAPL) and Google Inc. (NASDAQ: GOOG), the once undisputed leader in smartphone sales has struggled to regain any competitive credibility at all. That is why the launch of BB10 is so important — the company has essentially bet the farm on the new smartphone.
Finding a buyer for the hardware production seems like a long-shot, no matter how successful the BB10 launch turns out. Making handsets is low-margin business anymore, unless the logo on the device happens to belong to Apple. Just ask Nokia Corp. (NYSE: NOK) or HTC.
Far more likely would be a shutdown of RIM’s hardware business and licensing the software to lower-cost manufacturers. But finding a licensee depends on a blockbuster launch next week — and even though hopes are high, RIM is starting in a big hole.
Microsoft Corp. (NASDAQ: MSFT) beat RIM to market with its Windows Phone 8 operating system, and Microsoft gives every indication of wanting to compete hard for a top-three position in smartphones. It goes without saying that Microsoft has much deeper pockets than RIM and could afford to starve the Canadian-based firm out of the competition.
RIM shares are jumping though this morning, up about 8.5% in early trading, at $17.19 in a 52-week range of $6.22 to $17.84. That looks good until one recalls that stock hit an all-time high of around $145 a share in early 2008 before being swept away by Apple and the iPhone.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
