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Could RIM Be the Apple of the Next Decade?

By Eric Bleeker and Jeremy Phillips | More Articles
December 31, 2011 | Comments (10)

The following video is part of our "Motley Fool Conversations" series, in which Eric Bleeker, senior technology analyst, and Jeremy Phillips, CTO, discuss topics around the investing world.

In today's edition, Eric and Jeremy look at recent chatter that Research In Motion could be the Apple of the next decade. That's definitely heady talk, considering Apple is now the most valuable technology company on Earth, and Eric thinks there are some key differences between RIM and the Apple of the late '90s -- notably, the leadership.

When Steve Jobs took over at Apple, he succeeded by culling bloated product lines and found true outsized gains by entering into new markets through his vision as the computer as a "digital hub." In RIM's case, its ineffective management continues delaying products and shows little ability to turn around its existing smartphone business. In addition, the company's entry into the tablet market has been an abject failure, yet it refuses to abandon the cause while other wiser rivals cede the market to Apple and Amazon.com. It's clear that Research In Motion as the "Apple of the Next Decade" is little more than wishful thinking.

RIM investors can look forward to a buyout and a healthy premium if management is kicked out. They can look forward to more delays, writedowns, and market-share pain if management stays.

But they can never look forward to seeing their company become the next Apple.

RIM might be failing, but the mobile space is still growing at high growth rates and full of opportunity. It's an industry that has made Apple the most valuable company in the world and is paving the way for the next generation of billion-dollar technology companies. The Motley Fool has a just released free report on mobile named "The Next Trillion Dollar Revolution." Inside, we describe why the mobile revolution will dwarf any other technology revolution seen before it, and we name one company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, but you can be among the first to access this just released report by clicking here -- it's free.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Eric Bleeker and Jeremy Phillips own no shares of the companies mentioned here. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple and Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 31, 2011, at 5:56 PM, Randy76 wrote:

    The video is Eric/Jeremy discussing if RIM can be the next APPL – a question/comment made by some unnamed analyst. Umm, who is the analyst that made that comment? At the very least naming the analyst should be part of the discussion if this not their question or comment.

  • Report this Comment On December 31, 2011, at 6:03 PM, InfoThatHelp wrote:

    This question is entirely based on one premise: Apple's demise within the next decade. With Apple firmly entrenched for the next decade, this question is a joke with very bad taste. Rim will not be taken over because Rim has nothing to offer to the mobile age. Rimm share price would drop below $2 within 12 months or sooner, then Rimm would become a pennystock as Lazaridis and Balsillie would not take Rimm private.

  • Report this Comment On December 31, 2011, at 9:12 PM, baldheadeddork wrote:

    No.

    This has been another edition of simple answers to stupid questions. (tm Atrios)

  • Report this Comment On December 31, 2011, at 10:06 PM, bsimpsen wrote:

    Could RIM be the Apple of the next decade?

    I think that's more likely than Motley Fool posting a worthwhile analysis of anything.

  • Report this Comment On December 31, 2011, at 11:10 PM, criticalfool wrote:

    Look at all these idiots talking about RIM at 42 a share in12 months. RIm has far more cash than that, and in 12 months, its bok value will be $24. BB10 will be out and Playbook bugs fized. I would in 12 months closer to $100 than $2.

  • Report this Comment On December 31, 2011, at 11:11 PM, criticalfool wrote:

    InfoThatHelp is a paid basher and is doing things illegal. Be vvery careful when you read his lies.

  • Report this Comment On January 01, 2012, at 2:23 AM, dxtx wrote:

    criticalfool, I agree.

    Most of what infothatHelp posts is utter crap.

  • Report this Comment On January 01, 2012, at 12:32 PM, InfoThatHelp wrote:

    Rimm -> $2 a share within 12 months, not a penny more.

  • Report this Comment On January 01, 2012, at 9:41 PM, eli124 wrote:

    lets keep been stupid and ask why rimm maybe nokia

  • Report this Comment On January 02, 2012, at 2:46 PM, jelp2 wrote:

    Sure, why not? Everything works in cycles. Everyone says RIM is old, is putting out the same products and not innovating. Well, they're doing what everyone wants them to, innovating. Thats what BB10 devices will be. Nobody was waiting for the iPhone before it came out because no one knew it existed, who knows how many times it was delayed internally because it wasn't ready. The fact that RIM is an established company already and all eyes are on them make the delays that much worse, when in reality they want to put out an exception, innovating product. This is where they're at, delays and all.

    Apple on the other hand is heading the same direction RIM had years ago. The iPhone has been out for almost 5 years now? It's still the same phone with a couple little upgrades here and there. It's going to get boring. Apple are going to be up against themselves to create a device to top their own phone.

    There will always be the Apple fans to buy Apple, RIM fans to buy BB etc., but who will have the next 'it' device to pull fans from one group to another. If BB10 devices are up to par and as innovating as promised, I don't see how they wouldn't pull more market share.

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