RIM: Restructuring, possible sell-off

[*LTD*]

http://www.neowin.net/news/rim-reportedly-planning-for-major-restructuring

http://www.reuters.com/article/2012/04/21/us-rim-idUSBRE83K03C20120421

RIM reportedly planning for major restructuring

Research in Motion is reportedly getting ready to make some major changes and it has begun its preparations by doing what many companies do in this situation; hire some lawyers. Reuters reports via unnamed sources that the makers of the Blackberry has hired the law firm of Milbank, Tweed, Hadley & McCloy LLP. The firm will reportedly work with RIM to create a restructuring plan for the company.

Some of the things the law firm might recommend to RIM include selling off some of its assets, along with the licensing of some of its patents. The firm might also suggest trying to have RIM partner up with some other companies.

The final resort for Canadian-based RIM would be selling off the company completely. A few weeks ago, Canadian Federal Finance Minister, Jim Flaherty, said his government wouldn't try to keep RIM from being acquired by a company based in another country.

Jim Ballsilie in 2007, on the iPhone threat:

http://www.forbes.com/sites/ericjac...mpetitive-threat-of-iphone-to-the-blackberry/

http://seekingalpha.com/article/397...d-6-02-07-earnings-call-transcript?part=qanda

"Yeah on the iPhone touch, I mean I don’t know, we do a lot of focused groups in what we do, there’s a lot of market research in what we do, we had a lot of market research from our customers in the markets on what the market expects from a solution. However, there has been some debate previous on graffiti and different touch and tactility things and [mechanical] vulnerability costs and battery kind of things and tactility things. I think the best thing will be that for these things to just get in to market and get going, and its just there’s just so many dimensions in our space happen sometimes people over define the category like its all about for so at last its all about the keyboard or its all about some input mechanism or its all about music play or something."

"And I think it’s a bit of multi-dimensional, it is a lot of multi-dimensional conversion space that we play in and it tends to be iterative and evolutionary. My experience is one person may be make a baby in nine months, nine people can’t make a baby in one month. But who knows may be some natural constructs can be shifted and we’ll have to revive those views and they can shorten these realities. But I think the best thing, the good thing is this, there is a lot of attention to this space, its growing the space, its validating extensions to the space. On a leadership positions, we see the growth current — and really keep it up and meant some go in the future. And that’s really what I focus on. I am not really want to play a gamesmanship, my input mechanisms funkier than your input mechanism."

"We’re really focused on compelling user experience the highly aligned relationships with the carriers and a tremendous amount of channel support and service support and care, and application extension, because our experience is there is a lot of heavy lifting there. And beyond that I can’t say as I really pay that much attention to all these little dynamics because it doesn’t help me, help my customers and help and channels more and so let it be what it will be."

"In terms of pricing of (inaudible) Curve sometimes they do special promos for new products, sometime they are slightly lower cost structure for us to make them. A lot of good carriers special programs and positioning, they excited and see an opportunity and sometime cause things for us and you also can see it kind of service plan they bundle to it and that kind of ads they allow to it. So, and different piece of hardware priced differently in different markets for us so, but the 8800 is a little more expensive in the Curve but its delightful to see the carriers pricing the Curve so aggressively because, my experience is when they do this it should actually takes two or three months for the momentum to really sort of kick in the gear."

"So if you start doing stuff like that in May, you generally start to really, the channel as we get bigger are kind of slow train are coming but comes sort of midish August, they really start gathering speed and then you can ride that through the back to school and the sort of Christmas kind of phase so, that’s we are pleased to see it and I don’t know if the 8800 that’ll shift that way maybe, maybe not, there’s just so many different programs and so many strategies. Its hard for me to sort of generalize it all."

Gobbledygook.

But they did manage to scam consumers with the Playbook.

Hat's off to RIM, that's quite an exit.

 

[Thomas Veil]

That's one of the finest examples of "industry-speak", pomposity and unintelligible grammar that I've come across in a long time.

If that's an example of their corporate thinking, no wonder they're in deep doo-doo.

 

[*LTD*]

That's one of the finest examples of "industry-speak", pomposity and unintelligible grammar that I've come across in a long time.

If that's an example of their corporate thinking, no wonder they're in deep doo-doo.

First thing I thought of:

http://www.youtube.com/watch?v=iLsDvGlIDh0

 

[boss.king]

But they did manage to scam consumers with the Playbook.

How exactly did they scam people?

 

[bruinsrme]

How exactly did they scam people?

Because theyre not apple. Apple is the only honest company left, dontcha know.

 

[smoledman]

I dread the idea that the only vendor for all my computing needs will be Apple. I believe the future of freedom in computing is riding on the success of Windows 8. This is about a blow against mono-tech. Essentially the "big brother" figure in the Apple Macintosh ad from 1984 is now Apple themselves. It's chilling to even think about the irony of that.

 

[*LTD*]

I dread the idea that the only vendor for all my computing needs will be Apple. I believe the future of freedom in computing is riding on the success of Windows 8. This is about a blow against mono-tech. Essentially the "big brother" figure in the Apple Macintosh ad from 1984 is now Apple themselves. It's chilling to even think about the irony of that.

You'll always have other options. There'll still be Windows, Linux, etc.

But it's difficult to be swayed away to another ecosystem, once committed to Apple's. They have a way of maintaining brand loyalty, and frankly, they've earned every bit of it.

This isn't exactly a complaint, either. If I had to be "locked in" to anything, then let it be the stuff coming from Cupertino.

 

[smoledman]

You'll always have other options. There'll still be Windows, Linux, etc.

But it's difficult to be swayed away to another ecosystem, once committed to Apple's. They have a way of maintaining brand loyalty, and frankly, they've earned every bit of it.

This isn't exactly a complaint, either. If I had to be "locked in" to anything, then let it be the stuff coming from Cupertino.

Sorry but you have expressed your glee at the hopeful demise of Microsoft many times, so you definitely see a future with no Windows ecosystem in it. Also the idea that you trust Apple forever with all your computing needs is chilling to say the least. I prefer to use a variety of ecosystems.

 

[*LTD*]

Sorry but you have expressed your glee at the hopeful demise of Microsoft many times,

Yes, that is true.

I certainly wouldn't mind seeing an end to that bloated pig of a company. Such a waste.

Google is a much more worthy opponent for Apple (though still not a vertically-integrated competitor, which is a shame.) At least they have daring and aren't slower than molasses in January.

 

[smoledman]

Yes, that is true.

I certainly wouldn't mind seeing an end to that bloated pig of a company. Such a waste.

Google is a much more worthy opponent for Apple (though still not a vertically-integrated competitor, which is a shame.) At least they have daring and aren't slower than molasses in January.

What isn't daring about Windows 8, Windows Phone? I swear your hatred of Microsoft blinds you to the facts. Another fact is that if Nokia continues hemmoraging money, Microsoft will swallow them up and will be a fully vertically integrated company on smartphones and perhaps tablets as well.

 

[*LTD*]

Also the idea that you trust Apple forever with all your computing needs is chilling to say the least.

When they stop inspiring that trust, I'll take my trust elsewhere.

Apple continues to be a very safe bet for the foreseeable future, though.

----------

What isn't daring about Windows 8, Windows Phone?

There's a difference between "daring" and "dumb."

iPhone and iPad = daring. Actually, hugely audacious.

WP7 and Windows 8 = LOL.

----------

Another fact is that if Nokia continues hemmoraging money, Microsoft will swallow them up

And you think this bodes well for either company?

You really don't know MS, do you?

 

[smoledman]

There's a difference between "daring" and "dumb."

iPhone and iPad = daring. Actually, hugely audacious.

WP7 and Windows 8 = LOL.

Sorry but that's what I'd expect to read on Endgadget. Do you ever tire of the one-liners?

 

[blueroom]

I had lunch with a fellow who had an Android based phone that cost him around $45 per month all in including tethering (Wind Mobile). I pay slightly more than that for my iPhone but I'm firmly entrenched in the Apple ecosystem (apps, iTunes, iCloud).

It did have nifty lasers beams shooting across the app screens though

 

[Dr McKay]

Yes, that is true.

I certainly wouldn't mind seeing an end to that bloated pig of a company. Such a waste.

How is it a waste? Microsoft powers the Enterprise market, their integration of products like Office are second to none. They managed to become the major player in the console market in such a short amount of time (Which was said to be impossible)

They've managed to produce a viable alternative to iOS and Android. Windows 8 looks very excited and so far has been a joy to use. At my workplace, The Eurofighter Typhoon onboard computers run on Windows NT 4. The Radar Displays run on Windows NT 4, (Soon to be upgraded to XP).

What will happen to the world if Microsoft magically disappeared overnight? The world isn't suddenly going to become a better place If the entire world switched over to OS X, infact many companies would become bankrupt attempting to do so.

 

[LethalWolfe]

But it's difficult to be swayed away to another ecosystem, once committed to Apple's. They have a way of maintaining brand loyalty, and frankly, they've earned every bit of it.

That's the point of building a walled garden is it not? To get people so financially entangled that switching vendors becomes cost prohibitive.

On a related note, w/what's gone down w/the pro users and Apple in past twelve months I've started buying/eyeballing software that's cross platform (some is even cross platform from a single license) and it's very liberating to not be locked into a specific OS or hardware vender.

I guess that just goes to your point *LTD*, walled gardens are great... until they're not.


Lethal

 

[KnightWRX]

They managed to become the major player in the console market in such a short amount of time (Which was said to be impossible)

Who said it was impossible ? Nintendo (with the NES) and Sony (with the Playstation) did it before them...

 

[Dr McKay]

Who said it was impossible ? Nintendo (with the NES) and Sony (with the Playstation) did it before them...

They were told it was too late to jump into the Console market, that it was in Japans hands. (Playstation and Nintendo).

 

[roadbloc]

But it's difficult to be swayed away to another ecosystem, once committed to Apple's.

I disagree. But anything that isn't singing praise about Apple is anecdotal isn't it?

 

[0dev]

Sorry but you have expressed your glee at the hopeful demise of Microsoft many times, so you definitely see a future with no Windows ecosystem in it. Also the idea that you trust Apple forever with all your computing needs is chilling to say the least. I prefer to use a variety of ecosystems.

Seems like *LTD* wants all companies that aren't Apple to die, eh?

It's funny, people have been forecasting RIM's death for years. And they will continue to do so for years to come. Just like the crazy guys who are convinced the world will end every week

 

[808?]

I’d shut it down and give the money back to the shareholders.

 

[Rodimus Prime]

My understanding is if RIM was bought up that if it was not Western company it is more or less will be blocked by either Canada or the US.

Chance are it will be even more limited that it will have to be either a Canadian or a US company that will even be able to buy it up with out facing some major road blocks from both the US and Canada. I could even see the EU getting involved in blocking it.

A company like HTC would be blocked over security reasons.

 

[*LTD*]

My understanding is if RIM was bought up that if it was not Western company it is more or less will be blocked by either Canada or the US.

Chance are it will be even more limited that it will have to be either a Canadian or a US company that will even be able to buy it up with out facing some major road blocks from both the US and Canada. I could even see the EU getting involved in blocking it.

A company like HTC would be blocked over security reasons.

"A few weeks ago, Canadian Federal Finance Minister, Jim Flaherty, said his government wouldn't try to keep RIM from being acquired by a company based in another country."

----------

Seems like *LTD* wants all companies that aren't Apple to die, eh?

Why would I want all?

Just the non-performing dead-weight. The ones holding back the rest of the industry.

 

[smithrh]

My understanding is if RIM was bought up that if it was not Western company it is more or less will be blocked by either Canada or the US.

Chance are it will be even more limited that it will have to be either a Canadian or a US company that will even be able to buy it up with out facing some major road blocks from both the US and Canada. I could even see the EU getting involved in blocking it.

A company like HTC would be blocked over security reasons.

I agree and disagree. While Chinese buyers (more likely HU than HTC) would almost certainly be blocked, I don't see the same restrictions for EU-based concerns.

The problem is, the people that have the money and would want RIM or pieces thereof aren't in the Western world - they're in China.

 

[chrono1081]

RIM made their own bed with this one, and its sad to know that lots of people may be jobless because of it.

Blackberries have stagnated so bad that many places have gotten rid of them. My current and past TWO work places all went iOS/Android, as have several of my friends workplaces.

Support for iOS/Android devices are a ton easier than support for Blackberries, the phones are better quality (depends which Android phone you get but the popular ones are usually good quality), and its easier to develop in house apps.

 

[0dev]

Why would I want all?

Just the non-performing dead-weight. The ones holding back the rest of the industry.

First off, assuming RIM is in fact a "dead-weight", how would it be "holding back the rest of the industry"? Surely if it truly is a dead-weight it'd simply fall behind?

Second, there is still very much a market for BlackBerries, it's just becoming a bit more niche in a lot of places, hence the company having to readjust to this. IMO the only thing RIM is doing wrong is trying to copy iOS and Android - they should focus on doing what made them successful in the first place, which is making solid secure messaging phones. And with the refocus on business customers I hope they do just that.

BBs are outselling iPhones something fierce in Middle Eastern markets BTW.