Do or Die: BlackBerry-Maker RIM's Stock at 8 Year Low as BB10 Nears
May 4, 2012 1:06 PM
comment(s) - last by
(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.
This article is over a month old, voting and posting comments is disabled
Nokia Lawsuits and the Fall of RIM
5/5/2012 10:25:25 AM
Nokia is taking HTC, ViewSonic, and RIM to court over 45 mobile patents. Three courts, in fact -- a district court in Delaware; the Regional Court in Dusseldorf, Germany; and the International Trade Commission. After coming to terms with Apple last year, and currently in bed with Microsoft, the Android-focused manufacturers seem like a natural target for Nokia... but RIM? That's just mean.
"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs
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
Apple and Samsung See Virtual Tie in Q3 U.S. Sales, Nokia Seizes Fourth
December 5, 2013, 8:00 PM
AT&T Goes After T-Mobile with Reduced Off-Contract Prices, New Base Rates
December 5, 2013, 11:28 AM
MSI Unveils 3K Resolution GT60 Gaming, Workstation Notebooks
December 5, 2013, 11:00 AM
No iPhone for Obama Due to Security Concerns
December 5, 2013, 9:57 AM
New Reversible "Type-C" USB Plug Coming in Mid-2014
December 4, 2013, 10:38 AM
IDC Reports PC Shipments Will Decline by Double Digits in 2013
December 4, 2013, 10:18 AM
Most Popular Articles
NSA Snares Americans' Porn Viewing Histories in Effort to Target Muslims
December 1, 2013, 9:00 PM
Coalition of 20+ Tech Firms Backs MRAM as Potential DRAM, NAND Replacement
November 29, 2013, 11:59 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
Fed Up With Cheating OEMs, Microsoft Trolls Chromebooks in New Ad
November 27, 2013, 4:09 PM
OCZ Goes Bankrupt, SSD Assets are Targeted by Toshiba
December 1, 2013, 9:58 PM
Latest Blog Posts
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
U.S. Army Developing Cyber, Electronic War Arsenal
Oct 31, 2013, 4:49 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information