RIM Not Worth Buying or Splitting Up, Says Analyst

    October 2, 2012
    Sean Patterson
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Although RIM impressed investors by not losing quite as much money this past quarter as was predicted, the company is still hemorrhaging its U.S. smartphone market share to Apple and Google and losing money. The company is banking its fortunes on its upcoming BlackBerry 10 OS, but the software and accompanying phones won’t hit store shelves until next year, well after the holiday shopping season. RIM has resorted to desperate measures to string developers along until then.

Today, All Things D is quoting a Credit Suisse analyst as saying RIM isn’t even in good enough shape to be bought or to spin off its divisions. The All Things D report quotes Kulbinder Garcha:

“Any deal for [the] company is highly complex in our view, requiring simultaneous management of a declining business, as well significant restructuring, and as such an acquirer maybe be best advised to wait for [the company] to shrink meaningfully before making any potential move,” Garcha theorized, adding that he’s not sure there’s anyone out there who could turn RIM into a winning play.

Garcha followed up by saying a sell-off of RIM’s various assets might not go well either. He questions the quality of RIM’s patent portfolio and states that RIM’s network operations center would be costly to convert for other operating systems. Garcha estimates RIM’s global smartphone share will decline to 2.5% next year.

  • Dom

    LOL…that stupid biased shill of an analyst is paid to lie. Most analysts said RIM would lose users this quarter and RIM in fact GAINED 2,000,000 new users for a total of 80,000,000 user base and GROWING. MILLIONS and MILLIONs of blackberry users are going to be upgrading to BB10 and many MILLIONS will switch to BB10 since it is a game changer.You paid shills are scared about BB10 and you should be. Apple sells phones with garbage apple maps , SCRATCHES , pupple tint with gray lines and battery issues…Oh ya NO NFC? Also ios is an old and dated OS. Get your facts striaght you paid SHILL.

  • Ryan

    Apple in 2004 was at $8 a share and nobody wanted them either. RIMM will be at $40 bucks a share in 24-months. Smart phone market is huge and only getting bigger. RIMM can always snap up a chinese manufacturer and gain sales in China. They have $2 billion in Cash and $2 billion of Patents. Stocks trading at $4 billion valuation.