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Is RIM really going to sell its hardware business?

Research In Motion
By Chris Umiastowski on 24 Jun 2012 05:16 pm EDT
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The rumours are flying today, folks.  Several media outlets are regurgitating a story from British newspaper, The Sunday Times, saying that RIM is considering a split into two business units.

I’d love to read the actual article (and post a link to it here), but it’s behind a paywall, and I’m not a subscriber.  So I’ll make do with the summaries written by Reuters and others.  The problem here, of course, is that summary articles get distorted and I don’t want any part in screwing up whatever the Sunday Times actually wrote.  So, if anyone has the original, please send it in and we’ll have a look.

The crux of the story seems to revolve around the possibility of RIM separating its handset business from everything else.  So let’s talk about this concept, because there are a bunch of fine points to explore.

First of all, creating a new business unit or carving off part of the business into a a new business unit does not mean a transaction is pending.  Sure, it can mean this. But I’ve seen plenty of business reorganizations that did not lead to transactions.  Thorsten Heins may simply have decided that the network operations business should be free to evaluate other business opportunities without being tied to the hardware business.

I’m also puzzled by the idea of RIM carving off JUST the hardware business.  To me this makes no sense at all.  I don’t see the hardware business being worth much on its own, and I don’t see why anyone would want to buy it.

Facebook and Amazon are being tossed around as potential buyers.  Again, I can’t see why Facebook would buy a hardware business at this point.  If they had an OS they wanted to run on their own hardware it isn’t difficult to get somebody else to make the hardware for you.  I think it’s much easier for a good software company to get into hardware than it is for a hardware company to get into software.

I can see the point of separating the network business from the handset business, but the handset business needs to include BlackBerry 10.  Otherwise what good is it to anyone?  Microsoft’s move to manufacture its own tablet, along with Google’s move to buy Motorola Mobility underscore the trend towards owning hardware and software under one roof.  Suddenly we are to believe that RIM’s going to sell off its hardware business?  

Nah.  I don’t buy it.

I do think Facebook needs a mobile strategy.  I do think Facebook is a natural buyer of RIM (the whole company) should a deal be struck.  And I have always thought Amazon was a potential buyer if they wanted to own an entire platform rather than leveraging Android.  But those possible outcomes really have nothing to do with RIM carving off the hardware business.

116 comments

SWAT-ron2k11

First for the first time ever :)

After Much thinking this would not be possible (at this time) BB10 is already in the works to be released this year and moving it to new hardware would take a huge amount of time. Plus they are in the midst of Re-Working there manufacturing Sector. So why would they Reorganize it to then get rid of it all together. i'm just putting 2 and 2 together. An Official statement was released its on N4bb, and reading it really concludes RIM is still on track with there plan

shebmiller

Enough said! Thank you. It's like Adam and Chris called eachother and said "let's bait and feed some trolls today!" very disappointing...

lorax1284

I agree that the board of directors of RIM have settled on pursuit of BB10 OS release including new hardware... so isn't this rumour possibly just the result of the board and their selected consultants doing "due diligence" on the strategy? It may seem to us for many reasons that selling the hardware business off would be idiotic, but for the board to satisfy the other investors that it IS idiotic, there's some degree of research that must be conducted, so that when the board rules OUT the idea of selling off the hardware business (for now, at least) it has done so with credible data, not just gut instinct.

Pete6

It really depends on BB10 sales. If they are good and save the company then it will be business as usual.

If the new product fails then something will need to be done.

Until either outcome is known, this whole fiasco written by yet another zero-knowlwedge journalist is a non-event.

Jtaylor1986

Was this whole story drummed up by surreal civic? It doesn't seem that there is any value in making any major changes until bb10 has had 6 months to prove itself able to reverse momentum. Also where is this mini series on the trip to waterloo we were promised a week ago.

westex#WP

I doubt BB10 is gonna have 6 months to prove itself. It had better be a SMASH HIT out of the gates. Look at Microsoft. They have a very credible and lauded OS that has struggled, but they have PILES and PILES of cash to burn through to ensure success. RIM does not. I think many Blackberry fans underestimate the incredible mountain RIM is attempting to climb. By selling/shedding the network side of it, RIM is most likely stocking up it's reserves to fight the good fight. The reality is that the general public (that RIM must win over, not the hardcore Crackberry fans) doesn't really care about BES/BIS or security. So, it sounds like a good way to generate some quick cash.

Syrous44

Now that's a scary thought but very right on the money as the consumer has spoken time and time again, business and security is not it. A decent communications device and multi meadia device is where its at. What's funny they are starting to balance both while Rim is only now scratching the surfice. If only Rims brass didn't laugh this trend off when iphone came and then android followed we would not be having this discussion today.

Joe257

RIM hasn't lost ground because of business and security. People overlook business and security, but in the back of their minds, they know they need it. Do you run your PC without an Antivirus program? Same difference.

RIM lost ground because their platform was aging and needed to be reinvented. With QNX, PlayBook OS, and BB10, it's done. How we need the BB10 devices to rock the world. It can't arrive soon enough.

scalemaster34

Will take much more than an OS overhaul to save RIM. BB10 is only going to be one part of the puzzle, if RIM gets the rest of the puzzle put together in time then they should be able to turn things around.

Hardware is going to need to be high-end enough to smoothly run the OS along with normally applications.

Pricing will be very important. Hope PlayBook shown RIM that, they can not compete with Apple at the same price point with an "unknown" device.

App - RIM is working very hard on this. But so far it is most a lot of talk, PlayBook is still lacking in quality apps and is not listed by most large companies that produce apps for their customers.

Content - RIM has failed so far on this end. Yes if you have tech skills you can get content on the PlayBook or you BB. But it isn't seamless, it isn't backed-up and it isn't for the average consumer.

Android Market for QNX

@westex74, Exactly what I was going to say. RIM has around 2 billion in cash on hand, which doesn't last them very long under the current burn rate. I think if it does end up being true that they're splitting the company, they're more likely to sell the networking side of the company than the hardware side. It makes no sense to sell the hardware when BB 10 relies on it.

I do think BES/BIS is pretty worthless at this point when BYOD is starting to dominate the workplace. BB now needs to be a consumer device in order to survive, and in that world, the networking division is quite useless.

Joe257

You're right in saying the networking division will take a hit, because cheaper data rates has made all RIM's added value (data compression, data efficiency) less of a factor. BOYD is in full swing but data breaches will become more widespread as will malware on smartphones.

Puz_zled

Burn rate??!! They put 600 million in CASH INTO their bank account last quarter. Now I concede that the amount of cash they add to their account is likely to decline for the next quarter (or 2), but they are still expected to remain cash flow positive by most people who follow the company. So, there is no burn rate at this time. Unlike Nokia!
From my Neutrino powered Playbook.

thisiscjay

LMAOOO @ the surreal civic comment

robtanz

Totally down with your reasoning. Chris U for prime minister!

SurrealCivic

RIM wanting to sell its non profitable hardware business and someone wanting to buy is the big difference here.

I've been saying for a while that RIM should sell its hardware business. But as for who would want to buy it? When you think about it:

1. Amazon -- They have the content, they are hungry for a software platform. So them buying RIMs hardware business without an OS makes no sense. But if a licensing agreement goes a long with it as a package deal. Now it makes more sense.

2. Facebook -- They are in a similar situation than Amazon, but they are a step ahead. They have actually been building a mobile platform. We see parts of this already. Facebook Messenger, Facebook Camera, Games, etc.

Therefore, it's not out of the question. It is plausible that someone can purchase RIM's hardware business without the other parts, services and software. However, the price needs to be right. Remember too, RIM has a lot of hardware patents.

Mattma43

From N4BB

After today’s news about a possible split of the company, I reached out to a contact within RIM and received the following statement.

A RIM Spokesperson said:

“RIM has hired advisers to help the Company examine ways to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives. As Thorsten said on the Company’s fourth-quarter earnings call, ‘We believe the best way to drive value for our stakeholders is to execute on our plan to turn the company around.’ This remains true.”

So what do you think? It is not a 100% definite answer, but seems like the main goal is to turn the company around, as they’ve repeatedly stated before. Sound off in the comments!

Which do we believe, the media speculation or the RIM spokesperson?

shebmiller

Is that a real question? Lol

russworman

Tired of seeing N4BB stuff claiming to be from insiders... This information has been in actual articles from respected news outlets shortly after the earnings call and since RIM hired the banks to explore options... I happen to come on Crackberry for the real inside scoops and good editorials. It is a SHAME they have had to post some Editorials/News to explain what some are posting in forums as exclusive N4BB is OLD news or incorrect based on stated facts...

dentynefire

Why are there so many people suggesting RIM be broken up? If its good enough to be broken up and purchased by another company(s) then why the need to sell??? Complete garbage.

3Dee

WTF people, Facebook and Amazon?! Come on, enough already! Do you really think that the platform msot prized for its security and pricy, that's so hardcore that the Pres rocks one as standard, would be bought by Facebook, for whom privacy is an obstacle and headache, not a value? Come on!!! Get real!

Puz_zled

Thank you for expressing what I keep thinking!
From my Neutrino powered Playbook

ayekon

"I’m also puzzled by the idea of RIM carving off JUST the hardware business. To me this makes no sense at all. I don’t see the hardware business being worth much on its own, and I don’t see why anyone would want to buy it."

This is the point of why it makes no sense...

With pending release of an above par OS and the restructuring of manufacturers and having the handset itself already made... RIM appears to be heading down an Apple style road with 2 handsets instead of one...

These rumors are getting damned annoying...

Listen to them more about 4 months after BB10 launches...

SWAT-ron2k11

@SurrealCivic is Using common Sense and Logic But Reality is at this point selling there hardware division CANT work out. AND He makes the best point ever.

THIS IS A FACT !!! : RIM cant sell there hardware division alone because it would be worthless.

Why would selling it off not make sense? cause selling it off and licensing BB10 together would cause back fire. It contradicts his statement. When its licensed, what happens to BB10 being all BlackBerry ? its gone, people leave or people wait for the other one. it doesn't work out in the market but it does work out in Numbers. Bringing in a second party changes he market dynamics so much.
My conclusion is everyone's looking at numbers. $$$$$ Let's look at something else

I own a blackberry cause i love RIM, i love the security,and its different to the rest.

ayekon

And RIM's security would be gone...
You forgot the most important point...

Ronzdaname

This seems like a rumor put in place to keep potential customers from gaining interest in BlackBerry 10, IMO. Even if this is true (which I doubt), why mention this when your about to launch an OS that just may change everything? This just makes no sense to me.

I could, maybe, see something like this being said if BB10 doesn't do as well as we all believe it will. I just believe that this has been fabricated to start kill the buzz for BB10. Can. Someone please verify this?

GeneralHerzog

Surely you can't eluding to some sort of conspiracy against RIM. Why would anyone want to negatively distort truths/facts?

Humans are an honest group. We never falsify numbers for personal gain. We never lie to make others suffer.

And if you buy that, I have some beach front property in Florida with friendly reptiles living nearby that you might be interested in.

I agree 100%. This smells more like yet another bash job to keep RIM down on the eve of their potential come back.

I'll sell my stock after BB10 begins to show signs of failure but if it holds its own as I suspect it will, then we can all come back in here and bash the tabloids for being idiots.

ayekon

"Humans are an honest group. We never falsify numbers for personal gain. We never lie to make others suffer."

LOL...

Tell that to the current Whitehouse administration...

I almost tinkled

shebmiller

This is why I find this ****ING ridiculous that it ends up on not only 1 but 2 blog posts on Crackberry. I think I need to find a new BlackBerry blog...

shebmiller

This is why I find this ****ING ridiculous that it ends up on not only 1 but 2 blog posts on Crackberry. I think I need to find a new BlackBerry blog...

kupfernigk

Indeed.
It's funny how the rumor started very shortly after the Windows Surface tablet was announced to a resounding "meh" from the tech press.
We tend to forget that currently Microsoft is 18 months behind RIM in re-inventing itself (RIM has had QNX going on a working product that you can buy for over a year, Microsoft won't even have one for at least 6 months).

Drayk

This is exactly what I thought.........

youknwwho

We will know by the end of the year, some how I don't like the idea RIM splitting up at all. Like Kevin said in a few blog post back, what is happening to RIM right now reflect the failure of the past. They're in a dead space where not much is going to happens till latter this year (unless some how the PB 4G got release before BB10 see the light of day which I highly doubt). Give them time, don't be all gloom and doom right now. Yes the sky is coming down but not right now and it is not irreversible

jafobabe

Is this a duplicate front page post from the one Adam did at noon?? Or am I seeing double??

Zach Gilbert

This is where Chris takes a deeper look at the business aspects of the post that adam did.

Jake Storm

This is the post that Adam should have wrote.
Not just regurgitating the drivel from other blogs.

Thank you Chris!

Chris Umiastowski

Remember the site has two functions when it comes to news / rumours.  First is to get it out there so you know about it.  Adam did that.  Speed matters.  Then we come back to dig deeper.  If it really matters, we'll come back again and again and analyze the situation like we own it.  That's what makes CrackBerry rock.

marko868

RIM is dying a slow painful death trying to compete with the big boys! They had the chance but slipped into a comfort zone expecting tiny screen keypad phones to be the hottest thing since sliced bread forever. The future is touch and thousands of apps! Embrace it, die or sell.

Sirhill

Marko868 is dying a slow painful death trying to troll the fanboys! HE had a chance but slipped into a comfort zone expecting to get us all heated but fall short with crazy comments that he thought was the hottest thing since sliced bread. The future can't been seen for RIM, it's all speculation at this point, so Embrace that!

marko868

How's that kool aid tasting? lol

buwee

Touch screens suck shit! LOL

robotaholic

I hate that everything you wrote is true. I love RIM and want them to survive. I have Samsung Galaxy S2 and it has been awesome...but I want to come back to BB.

Tõnis

These rumors make me sick. The last thing I would ever want would be for my beloved BlackBerry platform to become associated with facebook or cluttered with amazon ads and related spam.

revtech

exactly what I wanted to say . . . love RIM, hate facebook; that marriage would make me sick (not that anyone cares what I think of course)

bk1022

The MSM actively has been trying to depress RIM's stock to make it a takeover target. There is no logical reason to release this story ahead of a major product launch unless people with inside information have strong belief the BB10 phones will either succeed or fail (pick one) and want to act ahead of the roll out for some other purpose.

mapsonburt

I can't believe RIM would be stupid enough to listen to SurrealCivic and sell the hw business. Even he doesn't believe it makes sense given Chris's potential buyers being Amazon (they'd want the whole thing) and FaceBook (why would they restrict themselves to one - declining - platform?).

IBM went through this problem when it nearly died. They brought in an outsider who was counselors by he media, financial wizards and just about anyone who could talk to split up the company and sell it off. He did the exact opposite and got rid of the fiefdoms of independent divisions and brought them together. He recognized that what made IBM special wasn't a particular computer model, operating system, printer, research, etc... But the sum of the parts. No other company could integrate all of the troublesome bits of the IT world and create real world solutions for business clients. He realized that while IBM might not be able to sell the best OS in the world to consumers, that there were a hundred billion dollars a year that it could make selling to business looking for robust solutions for complex problems. That didn't mean creating a product for every issue and it meant partnering for things it wasn't best at (applications specifically). In a few short years, IBM went from being a couple of months from Chapter 11 to being number 1 again. They didn't do it by growing revenues but rather by growing earnings. My IBM stock more than quadrupled in his tenure. I think RIM COULD do something similar... But selling off the HW? Who'd want to build BlackBerry Phones when Android comes for free?

khanig

No one, and I mean NO ONE, outside of the BB community is talking at all about BB10. RIM is doing all the "dog and pony" shows, displaying BB10 on an "alpha" system, just to make it attractive to a buyer. The only ones who care about BB are the customers, like me and I'd speculate many of you, who love BB and think it's the best thing out there. But, if RIM was serious, there would be a big push. Look at today's NY Times, section one, page 24. Huge ad for iPhone. Where is the BB10 ad from RIM? We better get used to looking for Android phones. I love my 9800. It's sad but RIM is closing people. They want to sell as many units as possible to make the stockholders happy. Otherwise, RIM could care less about customer loyalty.

khanig

Actually, I double checked. It's an HTC phone in the NY Times not an iPhone. But, what the hell. If it's not a BB, they all look the same!

shebmiller

Advertising something that doesn't yet exist would be a waste of cash

gimpy666

gimpy666
Idiots who have space to fill or their editor screams at them.

deltact

Potential buyers have a vested interest in dropping RIM's share price to make it easier/cheaper to buy, which can be done by feeding rumours to bloodthirsty persons in the media. Food for thought...

Darrweng

RIMM is at $9.8. Players are spreading rumors before they short it again. What else is new. For us fans, we just need to stay tuned to BB10.

Eli.Bret

We may say whatever we want, it is just a speculation. None of us knows what Rim thinks as a whole. We may brag about the possibilities and it make us feel better. No comparison to any other platform is going to make RIM look better or worst. Competition drives the market. Is it the right market for RIM right now? Unfortunately in my opinion it is not, and only BB10 could prove me wrong.

blackberryslo

RIM needs the hardware business. You just cannot survive only as an OS maker. That's total nonesense. Let's face it we like the bold because of the hardware and not the OS. Even Google is going the hardware road so these rumours are hopefully not true.

I hate speculators. They take every chance to ruin a good company that has found itself in trouble just to make some quick bucks.

lnichols

Not really. RIM didn't manufacture the Playbook, Quanta did to their specs. Apple doesn't manufacture the iPhone, they outsource that to Foxconn. RIM makes its own phones and the software to run on them. Obviously the Apple model is cheaper or Apple would be building their own plant. It is a much cleaner model for business because you just pay the OEM $X to build the phone to your specifications and can still get a quality product. RIM has all this manufacturing capacity right now churning out phones that not many people are buying, so you have high costs of keeping those facilities and people working in them employed. If for some reason the iPhone stopped selling, Foxconn would be hit hard, Apple employees not as much, and Apple wouldn't have an iPhone plant doing nothing (pure hypothetical).

zensen

Takeovers and potential buyers aside, splitting the business in two reminds me of how palm went about it. They ended up splitting the hardware and software to license palmOS out. We all saw how that worked out. It didn't really work out for apple regarding licensing out their os before steve jobs came back to the helm.

I sure hope the people their listening to have looked at palm and will not be following in the same footsteps. Separating hardware is probably seen as a way to license bb10. Even microsoft a software maker is jumping into hardware to make sure surface is up to standard.

I'm not keen on amazon or facebook. I

khanig

Just for the heck of it, I went to the AT&T website to check on Androids. The closest thing to my Torch 9800 is the Samsung Galaxy III (the new one)...in the "girly" pearl blue (please, ladies, no anger..A figure of speech! Love ya!) I mean, that's the only color? God help us. This is what RIM is directing us to? BB is old school. Classy. Samsung? come on, RIM.

khanig

And what's a "Pantech" anyway?

khanig

And what's with this HTC ad from Sprint doing on a CB website? This is BB, not HTC. F (though you really didn't see that letter) HTC. If we want to see HTC, we'll go there. Come on, RIM. Get some "stones."

annthonny

Why this news sound so familiar? Last year after the Hewlett Packard webOS and PSG fiasgo Leo Apotheker had the same brilliant idea with HP and that just ended with him being booted as CEO. What is also so familiar was that the supposed buyers were facebook and amazon. If either company wanted to produce a phone they would have done it by now.

Facebook is available in most platforms (as An app or integrated into the software) already why risk on its own device? Amazon with its kindle fire and Prime Subscription is on a different path. Just because blackberry had had a rough year (or as matter of fact a few ) that does not means a sale would change it. Let's not forget that apple at one time was on this path too and they overcame it by doing what RIM is doing..."taking what they are good at it and making it better and smarter"

khanig

BUT NO ONE KNOWS BUT US!!!!!! RIM has GOT to push BB and BB10. Since they are not, except to CB heads like us, they don't seem to want to. Do we really want a pearl blue Samsung Galaxy III? Haul THAT one out at the gym. BB is Old School. Classy. Whatever RIM is thinking it is NOT their customers. They are going to screw us. Simple as that.

charlieforbes71

Once again Chris is the voice of reason.... thanks @cumiastowski

shebmiller

Okay really? **ck this speculative bullshit. Crackberry is going down the drain. Sorry Chris, I usually like reading your posts but this is based off pure speculation and it's just dumb, real **cking dumb. This is what the forums are for, not the main Page.

falconee

i think that's bullshit, Rim should keep their hardware if they want to take on ios and android, bb10 is not enough for a successful blackberry smartphone, they need the hardware business, whats the point of hiring thorsten heins, and all the hardwork to make blackberry successful again if they want ro sell their hardware business ! This is just a newspaper blah blah blah !!!!

falconee

Again fuck u Chris !! This is unreasonable what you re talking about !

brhilaire

If their hardware operations are unprofitable, then RIM just needs to stop having so much different blackberry model phones. Simple as that. Right now the well performing models are covering the losses of the models that is not selling well on the markets. That's not profitable in the long run.

khanig

I agree. Just out of curiosity, I thought a 9860 looked cool so I thought of getting one to change over to OS 7 and try an all touch, unlike my 9800 with OS6. So, there was a 9850. I checked around like what's the difference? (Well, one post gave me a lot of tech talk on "cdms" and the like, but like most people, we just want to know WHAT's THE BIG DEAL that we need all these models?). That's a big problem for RIM. I mean, look at Apple. ONE iPhone. ONE. They ain't "hurting." Why didn't RIM focus on a handful of models that were easy to distinguish even for hard core CB heads like us? But Noooooo. Well, now they are sinking. Look over at the ad I'm seeing to the right of my screen. "ShopCrackberry." Why all these models? Do any of us regular customers know the difference except one looks neater than the other? But lool, RIM is looking at numbers. We all better start looking for Androids. and not that pearl blue one!

Liquid_Revolver

Don't get mad at Chris...RIM is going down the drain for its lack of innovation and OS. Which can go hand in hand.

RIM has been for sale for the last 4-5 years. They had a chance to climb out and went back to the shit.

Its over.

palomartian

Can't happen. The hardware and noc assets are both already priced at $zero by the market. Guess why. RIM is selling for cash and the value of their patents right now. Why rumor monger? Nothing left on the downside except to watch the stock drip drip drip towards $7 as they piss away all the cash chasing the market with an app-less BB10. No matter how sizzling the hardware is, no matter if they write a perfect Android emulator, Samsung and others will have something better. There will be no incentive for the average consumer to buy a BB10, particularly since you know they are going to price it at the top of the range. Maybe, if they had a few years to convince people, they could pull this off.

khanig

That's right. I hate to put it crassly, but RIM has had no stones to take on Apple and Android. But pearl blue Galaxy III? Take that one out at the gym!

Syrous44

Its not that they had no stones to take them on. They decided to do nothing in the early goings by pissing themselfs laughing at the emerging competition thinking they had no chance. Now the brass at RIM is shiting their collective pants knowing the fucked up majorly and this last hell marry might not win them the game.

Syrous44

That's why I believe with all this negative media shorting Rims stock they should go private again. If they don't their might not be a Rim before BB10 comes out as they will bw bought out

Joe257

What a stupid idea! While Android is messing around with HTC and other vendors who can't get their act together, RIM who builds the most reliable devices (ref: Consumer Reports, 2011) wants to split off their hardware business? Seriously? Windows Phone never took because third party hardware was suspect. It has improved with Nokia but it isn't as good as RIM and Apple. Why is Microsoft finally building their own tablets?

I hope this is all but a rumor! Perhaps someone knows something we don't but the idea just doesn't make any sense.

AlienSlacker

Must be a slow news day so the media regurgitates a gloom and doom story about RIM. RIM is not going to sell off any part of it's business and it's not going to go bankrupt any time soon. Move along folks nothing to see here.

revtech

Wow, I always thought crackberry was full of reasonable and mature opinion/discussion; what's with all the potty-mouth ranting lately . . . c'mon, can we get back to some measure of civility in our dialog please?

green_ember

I know a lot of people who only have an Android device because they hate Apple but still want the experience of "full screen " Web browsing and app variety. At the same time they put up with a bunch of bugs and quirks because the only alternative is to get an iphone. If blackberry offers an alternative with bb10, I think we could see things turn around quite nicely. Just like only hardcore fans love BlackBerry, only hardcore geeks absolutely love android. People only love apple for the perceived image they get from owning one. Doubt me? Just look how many iphone cases have a cut out for the apple logo on the back. There is no functional reason for it; it's just so people can show off that they bought an iphone. For the average consumer, all you need to do is provide a compelling product and the people could care less who makes it. Get enough average consumers and the image-conscious "me too" crowd will follow on their own...

iBB10oid

I disagree, when you have a quality product that satisfy your needs and then gives you a little bit more, you feel proud about it. You then, go outside and share the wonderful experience with the rest of the world. That is what Apple did a few years ago and that have them above everyone else. That is what Android has been slowly doing. That is what RIM did MANY years ago but then let go.

I don't pay much attention to these news or for that matter to the opinion of the likes of Chris U or Kevin M. They have to generate traffic on this site and MANY TIMES will go out and write a story on ANYTHING that comes their way.

If you look at RIM's core competencies today, there isn't much left. In the past they provided customers with a balanced offering but nowadays, other companies provide more value than RIM. I think that RIM as we know it today is over. Poor Thor was given the keys too late. The 2 clowns before him really destroyed the company.

joski

You have nerdy Android logic.

Rootbrian

The Media is full of shit.

palomartian

Green ember has a point. When Starbucks said they were going to take the fish bitch off the cup, people went nuts.

anon5129477

No its not too late. Rumors are flying cause wall street knows this is a safe stock to buy for the january effect too. Rim will be a good stock to buy into when the hardware hits and we get QNX phones. You will see. We will be back up to 50 bucks soon. Did you see the new Sony phone this week? My guess is that the BB10 hardware might be something like that. Its going to be i nice bice phone with a lot of great features.

I am a stock and commodity trader. All of this news is just noise. Wall street is messing with Rim and the whole phycological games are all too easy to play here. You wait and BUY STOCK for Christmas! Copied and saved.

digitalhomeboy

I see a Mobilesyrup link, but @CrackBerryKevin here is one from Business Week http://buswk.co/PTpCZf. Great little read, sounds speculative however.

buckwylder

My first BB was a storm. Loved it. LoL

RIM makes awesome hardware. I use my PlayBook and 9810 all the time. They're awesome.

Lots of people where I live still got love for BlackBerry and I see so many people with 9900's. Out regional carrier has a 9800 on their 2012 phonebook, I love it! LoL, plus everybody who works at SaskTel uses a work BlackBerry, of course.
_________________________________
I'm aure RIM is gonna hang in there. BB10 will be the best regardless. FTW___________________________

in the time of your life, live so that in that good time, there should be no ugliness or death for yourself or for any life that your life touches, seek goodness everywhere

BB_Bmore

Okay if you guys believe this then I guess you would believe me if I told you Rim was selling to me and the deal is all but done...just waiting on a few more paychecks to save up. Smh.

bbw3323

This is just my 2 cents worth to all you blackberry users, and shareholders as well. I don't think RIM would sell the company in a manner that would abandon its loyal customers, nor would a potential buyer want to do anything but good for the loyal customer base. This would only make sense. If Microsoft bought a stake in the company and added hundreds of thousands of apps to BB10, they could give Apple a run for their money. To the shareholders: :I boought a few thousand shares with most of my hard earned savings much higher than $10, in April, and I'm not going to give in to any of this RIM bashing. I think RIM will fight hard to create product value for their loyal customers as well as shareholders. To the people shorting RIM stock: I wish you the best, but sure hope you sold over $15 or $20, or you might wake up one morning thinking the sky is falling when RIM stock soars!! GO BB10

needforbbx

Facebook a natural buyer? My vote may not count for much, but I would chuck my BB and PB if that came to fruition. I think most org and gov would do the same.

EchuOkan1

I agree, Facebook, no! Amazon? Possibly.

zar1964

I don't listen to the media on what they say about RIM, they aren't going to break apart or be bought

Wolf35Nine

No sources were cited for the information.

bbw3323

I don't think Rim would say, "Oh yes we're selling the company while in the middle of possible talks with a major player. I think RIMS still in a strong enough position to go it alone, but who knows what could happen. Rim has some great engineers that could work with Microsoft if they sold a portion of their stake to MSFT. Could you see RIM or Microsoft selling M-berries(Microberry), or better yet an X-Berry. LOL

musical1806

Who in the world decided that the "general" public isnt interested in security. We may be BB fans but we are also the general public. When one of friends bought his PB he was sold a norton package along with it, i told him to take itback as it was for android devices and not needed.

With more and more people making the move to mobile phone banking, and the future of NFC security is a big issue. May be RIM should take a leaf out of Apples book..... Anyone rember the old "I am a Mac & I am a PC" ads??

Also some one commented on the fact that no one out side of CB is excited out BB10. Just so to let you know NO ONE out side of Mobile Nations is talking about any phones OS. The "general" public dont care.

Whichbrings us to the real problem @ RIM..... PR. Theyrd media reations teams have they best paid jobs in the world, cause they dont appear to go to work. Yes RIM needs go sell itself but not to FB or Amazon but to the "general public". I am unfortunately on long term sick and have seen way too much TV. I have regular for just about every other mobile nation and nary a one for BB. RIM need to actually get in the game if they expect to score. I am sick of these "sequence shortened for tv" ads. Lets get cheesy and risque and fun.

Bold, Curvy or a little touch sensitive...... What Kind of BB ladie are you

RIM as they say at EA....... Its in the game & challenge everything.

Disparishun

Wouldn't a company like Salesforce be a much more natural acquirer of RIM than Facebook?

RIMperator

Totally agree with Chris. Palm had that great idea ... and where are they now? Apart from that everyone else including Microsoft is trying to achieve what RIM and Apple already have: their own Soft- and Hardware combination that makes the platform unique. And Thorsten has been repeating over and over how much he values the assets RIM has and that he already has been in the situation (at Siemens Mobile) where they had to compete over price ...

This is not going to happen.

The only thing I see is RIM licensing out BB10 to other vendors such as Samsung to strengthen the platform, gaining market share and to continue to push for additional applications. No matter how good BB10 is, without a broad application store it will become very hard. Everyone will want to have not only great apps for streaming, video chat, ebay, stocks, salesforce.com etc. but also trivial things like an app from your local transport association, phone books, local news etc. and this would be easier if a player like Samsung would help spreading the platform.

Superfly_FR

Thanks Chris for this. I guess we fully share this vision.

iluvtrinisoca

This article was sent to me by a gloating i-sheep user. Somehow they forget that Apple does not manufacture its own Hardware. If Rim is going in a new direction, then hardware may have to be designed and made elsewhere. Just My Take!!!!

http://gigaom.com/mobile/rim-reportedly-hanging-up-on-blackberry-phone-h...

lnichols

If anything, I think RIM is simply going to look to sell its manufacturing plants around the world to someone like a Quanta or Foxconn (OEM) and simply go towards the Apple model of only designing the phone and have someone else build it. That way if you go through a sales slump like they are currently in the OEM takes the burden of finding what to do with the capacity and manpower and RIM would not.

smartphones_dont_make_jackasses_smart

investors and shareholders, including users are sensing, not like it wasnt coming, PANIC up north!

michaelatkinson

Here is the news article

Embattled BlackBerry maker plans break-up
Ben Marlow and Simon Duke Published: 24 June 2012

THE struggling maker of the BlackBerry mobile phone has hatched a plan to break itself in two after falling to its first operating loss in a decade. Research in Motion (RIM) could sell its struggling handset manufacturing division, and then seek a buyer for its prized messaging network, which routes emails to users across the globe.

The Canadian company has hired two banks to explore the drastic move — which could result in it losing its independence — in a last-ditch attempt to stem the heavy losses suffered by investors since the launch of Apple’s iPhone in 2007.

RIM’s shares have crashed from C$148 in 2008 to C$10.12 at the end of last week. More than C$72 billion (£45 billion) has been wiped off its market value.

Its number of users has grown — from 25m in 2008 to 78m today — but at a far slower rate than at rivals. Four years ago it accounted for half of all smartphone sales, now it has just 10% of the market.

RIM’s first-quarter results this week will lay bare the scale of the task facing Thorsten Heins, who became chief executive in January. It is expected to report a loss of more than US$10m (£6.4m) between March and May, the first time its operating figures have dropped into the red since 2003. Heins is expected to cut about 2,000 jobs from the 16,500-strong global workforce.

Last month the German boss hired RBC Capital Markets and JP Morgan, the investment banks, to help draw up plans to revive the business.

One of the options under consideration is breaking off the handset division into a separate listed company or selling it to a rival. Potential buyers include Amazon and Facebook, which is rumoured to be developing its own smartphone.

Another option would be to keep the company together but seek shelter with the sale of a stake to a larger technology company, such as Microsoft. The turnaround strategy is expected to be unveiled by the end of the summer.

Jaguar Financial, an activist investor with a sizable stake in RIM, said it “strongly supports” a break-up of the company. It wants RIM to sell the handset division and its patent portfolio, which could fetch several billion dollars.

That would leave RIM with the secure network that sends many millions of messages across the world every day. The company could potentially earn billions of dollars a year by opening up this network to rivals, such as Apple and Google. The other option would be to sell it.

“This is a clubby, cosy board. These are desperate times and they cannot afford to sit still,” said Victor Alboini, head of Jaguar Financial.

RIM’s problems are most acute in America, where revenues have slumped more than 70% in three years. The company has been forced to slash prices, hurting its margins.

smartphones_dont_make_jackasses_smart

crapple or microshaite? that would be a riot!!!

HNYK

BB hardware has always been reliable (except for the storm series). It has gotten better and better. The Bold 99xx is near perfect. The PlayBook is a solid full touch device. The Dev Alpha looks solid as well. It sucks if they have to split, but they gotta do what they gotta do.

ferre_kun

@michaelatkinson, is that the real source of this rumor? then the 'source to the story' was jaguar financial? are majority of RIM stockholder have the same opinion like jaguar financial? and what they want is splitting RIM apart so they feed media with negative rumors?

this means RIM is being destroyed from the inside. by it's stockholder. can anyone identify RIM's stockholder who's been feeding off negative rumors to media? just in case there's someone want to shut them up :p

musical1806

Is it just me or does that article not say that RIM is sell RIM. Simply put they will split then sell the hardware side. Once done they would sell the messaging side.

As I am not die hard RIM or CB follower this article le reads like a complete load of sh*te, especially as their source is an investment house looking to influence the market and make money. All i know is that is that i want a keyboard on my phone and BB have the best in the world.

zensen

the problem with selling off their hardware division is a big thing a lot of people dont realise. OPTIMISATION!!!!!

There's a reason why blackberry test their hardware and ultimately have full control what hardware they release and how it reacts to their software. I assume that's how they manage to get such great battery life out of their phones (yes I do realise their hardware is always cutting edge) but I think it will be such a shame if RIM loses this side of their business.

There's still money to be had in hardware as long as the software is up to scratch and that's coming. analyst can say all they want but I just feel they're wrong about this one! Unless they know something we dont about BB10, it's just pathetic that this seems to be a driving force in the media.

I know CRACKBERRY likes to not come across as overly bias but seriously this is the time where we should see editor articles about how important it is for RIM to keep focus and keep the business together.

Do you crackberry people actually believe this is for the best? I'd totally love to see an opinion on this. Do you really believe samsung (blergh) could save rim or an amazon buy out on hardware is the right thing for this company.

Of all the companies out there, I'd much rather see a partnership with Microsoft or Sony at least because they've got a game console that is popular and is somewhat linked to their catalog of games. But to let someone else have direct control of hardware and be weakened for a takeover is BS and short-sightedness.

These investment bankers have it wrong! :S

ferre_kun

to enlight you, symbian is being replaced with winmo. bada lost to android. BB OS? say if we follow the path those who want to burn RIM down, let's split software and hardware. can you imagine any big brand who are willing to put BB OS to their product? apple? Sony Ericksson? Samsung? i don't think so. what they can do is taking what BB OS have, and adapting it into what they have/are using now.

that's what they really want. to separate BB OS from the BB, therefor they can force their OS into BB, while conveniently leaving BB OS to rust and die because no one want to use it (can you imagine Samsung using BB OS instead of android? have you heard the news that samsung is developing security feature for bussiness related thing? do you think samsung will need BB security feature when they are currently developing it themself?).

then what will it leave us BB users? BB without BB OS, and way less security because integrating and adapting with other OS (or BB OS developed/adjusted by other brand). now should i let them burn RIM and choose another platform from now? or should i burn those who want to take my BB away from me?

smartphones_dont_make_jackasses_smart

The story cited new data from Toronto-based Solutions Research Group which showed a rapid erosion in the way Canadians view the BlackBerry. A survey of 1,000 Canadians aged 12-24 found that only 12% said their next phone would likely be a BlackBerry; 71% plan to buy an Apple iPhone or an Android phone. A year ago, a survey from the same firm found 31% of young Canadians planning to buy a BlackBerry. The number of Canadians in the target age range who own a BlackBerry fell to 31% in Q1 2012 from 40% in Q2 2011.

The story quotes a sales associated in a Telus store in Toronto as saying 90% of sales on the floor are iPhones – and about 75% are people switching to iPhones from a BlackBerry. Anecdotal, sure. But telling.

RIMM today fell 14 cents, or 1.5%, to $8.97.

smartphones_dont_make_jackasses_smart

Before I buy someone's hardware, regardless of who's, I want to make sure that the company is around long enough to warrant the guarantee or at least one free OS upgrade! Nokia and RIMM, the prom queens, are blood letting. Ask your self why? They sat on their fat asses and kept delivering the same old SHIT to us to buy, yeah team! What's the fucking difference between most of the devices RIMM puts out, besides the slight number change? THE FUCKING PLASTIC.!

Befair and look at the history or just scroll back up about a mile and see all the BB devices that are being sold a shopblackberry.... lots of shit to choose from.