RIM’s Month in Three Letters: WTF?
Blackberry’s once-mighty manufacturer is in trouble. The company laid off workers in July. Carriers don’t want to support the 4G Playbook tablet. The company’s messaging service has even been scapegoated for riots in London and elsewhere in Britain. Its new suite of smartphones may be the best Blackberrys ever made, but they probably won’t be enough to solve the company’s deeper problems.
Yet, after Google’s hefty purchase offer for Motorola Mobility Holdings, RIM’s stock is rallying for the first time in almost a year.
Analysts say buyers feel sanguine about RIM largely because of one of four scenarios:
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.