Jan 24 2012
My take on RIM
RIM is obviously in deep trouble. It’s stock price has fallen 75% in the last year and it just lost its dual CEO’s.
The value in RIM has always been twofold:
- its technology: back end, phone OS, buy especially secure email and messaging.
- its customer base
Its technology has failed to keep pace with innovation in iPhone and Android phones, and now in tablets. Its user base has been steadily eroded. I don’t know by how much.
Going forward, RIM’s value depends on how well it can retain its customer base, and how well it can dramatically improve its technology. Retaining its customer base relies on improving the technology, so in the end it is all about the technology.
There are two possible routes to take with the technology:
- Follow the example of Nokia and others and ditch its proprietary OS in favour of Android or Windows OS. I don’t think that this way it retain anywhere near the revenue it needs to support its market cap. In addition, it would be a lot of work to integrate RIM’s proprietary network into another OS – it’s deep stuff.
- Double down on its own technology. I think this is the way to go.
So, my advice to RIM is: double down on your technology. Use some cash or sell some assets to hire a wonder-team of developers and product people.



