Please ensure Javascript is enabled for purposes of website accessibility

Quick Take: Who's Afraid of the iPhone?

By Tim Beyers – Updated Nov 15, 2016 at 1:09AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Research In Motion isn't waiting till June to go on the offensive.

In Silicon Valley, PR duels frequently count as bloodsport. Today's throwdown comes courtesy of the fine folks at Research In Motion (NASDAQ:RIMM).

RIM's co-CEO, Jim Balsillie, told Reuters Canada in an interview that Apple's (NASDAQ:AAPL) iPhone isn't a threat: "It's kind of one more entrant into an already very busy space with lots of choice for consumers. But in terms of a sort of a sea-change for BlackBerry, I would think that's overstating it."

There are so many ways in which I love this quote. Let's cover two. First, it's true that the smartphone space is crowded. Palm (NASDAQ:PALM), Nokia (NYSE:NOK), and Motorola (NYSE:MOT) make for an impressive roster of competitors.

Second, it's also true that the iPhone -- which will be released in June -- doesn't yet represent a sea change for RIM. But how could it? Global demand for smartphones rose 42% during 2006. Everyone in this market is winning customers.

So why does Balsillie feel compelled to respond to the iPhone months before there's even a product available to show? Perhaps it's because, given the one-hit wonder that is its proprietary email system, today's RIM looks as vulnerable to me as Apple did 22 years ago.

(Curiously enough, once and future CEO Steve Jobs was fired from Apple in 1985.)

Do you agree? Disagree? Let me know.

Fool contributor Tim Beyers, who is ranked 1,060 out of more than 22,400 in our Motley Fool CAPS investor intelligence database, thinks his wife deserves the best growth stocks. That's why he's a regular contributor to David Gardner's Motley Fool Rule Breakers high-growth stock-picking service. Tim owns shares of Nokia. All of his portfolio holdings can be found at Tim's Fool profile. His thoughts on growth stocks, Foolishness, and investing in general may be found in his blog. Palm is a Stock Advisor pick. The Motley Fool's disclosure policy won't keep you on hold.

None

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.77 (0.23%) $0.34
BlackBerry Stock Quote
BlackBerry
BB
$4.97 (-1.97%) $0.10
Nokia Corporation Stock Quote
Nokia Corporation
NOK
$4.24 (-0.47%) $0.02
Motorola Solutions, Inc. Stock Quote
Motorola Solutions, Inc.
MSI
$225.81 (-1.29%) $-2.95
Palm, Inc. Stock Quote
Palm, Inc.
PALM

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.