Wednesday, November 19, 2008

Blackberry's Future

I've said this before and I'll said it again.  In the smartphone market, the guys to beat are the Blackberries.  The numbers last quarter with the units sale was an issue of timing rather than a trend.  So far as we know.

And even when Blackberry units overtake the iPhone in the fourth quarter, as it would likely to do, what will the finances be at RIM?  In a perfect world, as I like to envision it, if you're making money, everyone should be happy.  In the cut-throat financial world, you have to make more and more and more...

You get the idea.  So, even if RIM does sell more units, costs associated will go up as they've indicated.  Subsidies, advertising, more research and development, and other expenses associated to bring a product to market will go up.  Hence, lower margins.

Wall Street doesn't like lower margins or hints of it.  But it is out.  Even Apple.  But Apple artfully spinned it and said it is because they want to make sure there is "no umbrella room" for their competitors.  Analysts and fans bought it.

So lower margins and profits for investors.  Not to their liking so what is RIM to do?  Well, a few weeks ago, there was talk about a buyout by Redmond.  Rumors but entertaining just the same.  But does it make sense for RIM to look into it?

I don't know but I do point to this:  Yahoo.

Who do you think would be the best fit for mobile warriors for a takeover?

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