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.
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.