Do or Die: BlackBerry-Maker RIM's Stock at 8 Year Low as BB10 Nears
May 4, 2012 1:06 PM
(Source: Jason Mick/DailyTech LLC)
BlackBerry 10 is perhaps RIM's last hope
It's always unfortunate when a competitor operates under a "win or go home" ultimatum, but that's precisely the scenario Waterloo, Ontario-based phonemaker Research in Motion, ltd. (
) is staring in the face.
I. Financials Paint a Troubling Picture For Canada's Top Phonemaker
, RIM's stock this week hit its lowest level in eight years. Today the stock hit a new low of $11.63 USD/share, before rebounding slightly to the current trading level of around $11.90 USD/share.
This dismal performance and its effect on RIM's once-strong market cap stand in startling contrast with rival Cupertino, Calif.-based smartphone maker Apple, Inc. (
). Apple, maker of the iconic iPhone, is about $80 USD off
, but that mini-slump/profit-taking contraction hardly takes away from the fact that Apple's shares recently hit $644 USD/share -- by far the highest value in history.
To be fair Apple may be a bit over-valued. The world's most valuable tech company is worth approximately a third more in market cap than Exxon Mobil Corp. (
) -- the world's second most valuable company. While Apple is narrowly the world's most profitable company (
posting $11.6B USD
in the most recent quarter), Exxon Mobil is close behind with $9.45B USD in profit -- only 22 percent behind. But the slight difference in profitability vs. market cap surely bakes in Apple's meteoric rise in sales.
Many believe Apple may be the first trillion-dollar corporation in world history.
By contrast RIM has suffered an epic fall in share prices and profitability. The company recently posted
its first quarterly loss
, flipping from years of strong profits.
BlackBerry Bold 9900
A key concern is that despite the long string of profits, RIM only has $7B USD in cash and assets [
], a stockpile that recent quarters have eaten away. This contrasts with some
other struggling players like Nokia
) who has over $22B USD in assets hoarded away [
]. In other words, RIM has much less of a cushion to weather a prolonged maelstrom of depressed sales.
Many financial experts believe RIM is destined to become the smartphone industry's highest profile casualty yet.
II. BB10: Do-Or-Die
Thus it's likely do-or-die for the company's latest smartphone operating system release. At its peak in 2009 nearly one in two smartphones sold was a BlackBerry. Today that number is around
one in twenty
last and best hope
to keep from fading completely out of the sales picture is its new QNX-based operating smartphone operating system BlackBerry 10 (BB10).
The unfortunate news for RIM is that BB10 -- expected to launch this spring -- has
been delayed months
on the grounds of RIM's inability to find acceptably power-efficient mobile chipsets -- a problem that does not appear to be stopping LTE-empowered
Windows Phone-makers like Nokia
or Android LTE-phonemakers like Samsung Electronics Comp., Ltd. (
The good news is that the company's recent launch of alpha builds of BB10 on development devices showed something RIM has long lacked -- a modern smartphone operating system. BB10 in its semi-early form resembles a cross between
Android 4.0 Ice Cream Sandwich
PlayBook 2.0 OS
-- the also QNX-based operating system design found on
RIM's titular tablet
BB10 is likely RIM's last shot at a turnaround. [Image Source: BGR]
Despite that promising show, new more sensible executive leadership, and RIM's
with respect to its newfound feelings of superiority over Apple, et al., success is anything but certain for the Canadian phonemaker. Many analysts believe BB10 is too little too late. RIM may yet prove them wrong, but the company's record lows in share prices -- while partly a measure of the mini-slump the tech market has been in, in recent weeks, also serve as a telling sign just how little leeway RIM has in its quest to
avoid a sale
Rivals like Samsung, Microsoft Corp. (
), Apple are
at RIM's rich patent portfolio and the company's renowned proprietary physical keyboard designs. But despite its bitter slump RIM is not dead -- not yet.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
RIM's Last Hope: Gleaming BlackBerry 10 Dev Platform is Unveiled
May 1, 2012, 11:40 AM
IDC: Apple and Samsung Steadily Climb as Nokia, HTC, and RIM Plummet
May 1, 2012, 2:53 PM
Apple Store Disrupted by Screaming Mob, Masterminded by RIM
May 1, 2012, 1:00 PM
Apple Records Q2 Revenue of $39.2B; 35.1M iPhones, 11.8M iPads Sold
April 24, 2012, 4:30 PM
Nokia Bleeds Even More Sales Than Expected, Sales VP is Booted
April 19, 2012, 7:18 PM
Xiaomi Mi 6 - Flash Sale on April 28 in China
April 26, 2017, 7:45 AM
Apple Watch NikeLab Limited Edition unveiled.
April 22, 2017, 6:20 AM
What is the Apple’s iPhone 8 specifications and release date?
April 14, 2017, 5:43 AM
Xiaomi Mi Pad 3 tablet with Hexa –Core SoC, Android Marshmallow
April 6, 2017, 6:40 AM
Vivo launches V5 Plus IPL edition smartphone
April 4, 2017, 11:10 AM
Samsung S8 and S8 Plus: On Sale April 21 at Major Wireless Dealers
March 30, 2017, 7:35 AM
Most Popular Articles
Surface Pro 5 Rumors - New Release Date and Price
April 22, 2017, 6:45 AM
Apple Watch NikeLab Limited Edition unveiled.
April 22, 2017, 6:20 AM
Motorola Moto G5 Pus – Well Worth Considering Over the Others
April 25, 2017, 7:06 AM
SAPPHIRE PULSE Radeon RX 580 8GD5 – Great Value for the Money
April 20, 2017, 7:47 AM
Meet the Smartphone with four cameras - Alcatel Flashphone
April 5, 2017, 11:20 AM
Latest Blog Posts
Galaxy Note 8 – Available Second Half 2017
Apr 28, 2017, 7:30 AM
Google Android App – Huge improvement on Nighttime Photography
Apr 27, 2017, 7:40 AM
Google Co-Founder, Sergey Brin has an Airship
Apr 26, 2017, 6:43 AM
Samsung Galaxy S8 and S8 Plus – Lots of Glass that Breaks Easily
Apr 25, 2017, 7:20 AM
Samsung Galaxy S8 – Warning for Pet Owners
Apr 24, 2017, 5:59 AM
Sound Bars and the Costs?
Apr 23, 2017, 6:30 AM
Link your Brain to Your Computer – In Four Years…Maybe
Apr 22, 2017, 7:03 AM
Google Home can now identify users by their voice.
Apr 21, 2017, 7:15 AM
Amazon Lex – Now Available for Developers.
Apr 20, 2017, 6:58 AM
You can now use Instagram offline on your Android Smartphone
Apr 19, 2017, 8:00 AM
Now you can livestream to YouTube from your mobile device.
Apr 18, 2017, 8:05 AM
Google Home – Is It a Spy Device?
Apr 17, 2017, 7:30 AM
Apple added to self –driving test permit list
Apr 15, 2017, 6:21 AM
Project Scorpio – Coming on June 11
Apr 14, 2017, 6:20 AM
Looks Like Samsung Has Been Forgiven.
Apr 13, 2017, 6:50 AM
United Airlines - Blasted on China’s Social Network and the Stock Market
Apr 12, 2017, 6:50 AM
Amazon's Third-Party Sellers Hacked
Apr 11, 2017, 6:25 AM
Microsoft Surface Pro5 Details Revealed
Apr 9, 2017, 6:41 AM
Own An Android Phone? Then you could be hacked over Wi-FI
Apr 7, 2017, 6:47 AM
Apple confirms iOS 10.3 bug and its effect on iCloud Services
Apr 6, 2017, 6:30 AM
Apple Rolls Out New Version of Apple Music
Apr 5, 2017, 10:35 AM
Apple in the News
Apr 4, 2017, 9:03 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information