“Can Palm turn itself around by raising more cash and tweaking its strategy? I say no,” Fazil writes. “The only promise for Palm’s future is a buyout. And the only buyer that makes sense is BlackBerry maker Research In Motion.”
“RIM was the undisputed leader in the smartphone market a couple of years ago. It now faces significant threats from iPhone and Android. Its touchscreen models like the Storm paled in comparison to Apple’s iPhone and Google’s Nexus One. Despite being an integrated solution, RIM has allowed its devices and OS to become fragmented. Developers not only have to account for several different versions of hardware (keyboard, touchscreen, different sizes etc.), but they also face the challenge of making sure their apps run on most or all different OS versions,” Fazil writes. “As a result, BlackBerry’s applications marketplace is struggling to compete with Apple’s App Store or Google’s Android Market. And RIM’s hopes of modernizing its OS are weakening day by day.”
Fazil writes, “Despite its weaknesses, RIM is still in a strong position, and it’s not too late to stop the downward trend.”
Full article here.
MacDailyNews Take: Over 14 months ago we wrote: “Palm’s Pre dog and pony show is nothing more than takeover bait. They simply do not have the resources necessary to create another mobile platform, especially one that is superfluous. If Palm’s Pre is not a ruse, then those responsible are kidding themselves.” – MacDailyNews Take, January 21, 2009, just after beleaguered Palm unveiled their Palm Pre and webOS.
So RIM can buy Palm and assume it’s future legal headaches?
Makes no sense. Palm’s OS is completely different and incompatible with RIMM’s. What would be the point?
” What would be the point?” It’s just speculative garbage from to fill some space on some site.
It’s funny that they point out that they have to support tons of different devices with different features and multiple versions of operating systems. Seems like the exact same problem Android has.
Kind of reminds me of two turds circling the toilet bowl on their way down the drain… the bigger turd is going to buyout the smaller turd? There both going to end up in the sewer eventually anyway… who cares!!
The PalmOS is apparently good, but the hardware was only half-baked and not powerful enough. Also, Palm’s Intellectual Property portfolio is fairly extensive and can could protect RIM from IP litigation in the future.
So, he’s saying to solve RIM’s fragmented problem they should introduce webOS (yet another format) into the mix?
Or is he saying dump everything RIM has and go webOS?
RIMM is not going to buy PALM, dumbasses. Some Chinese company is going to buy it.
Duck here come the bigots
I’d welcome other opinions, but I’m having a hard time valuing Palm’s assets at anything above a quarter billion, or $1.50 per share… and I think that’s optimistic.
Is RIM circling the bowl or touring the rim?
Why not, Rimm’s owner has money burning a hole in his pocket after the NHL decided not to let him buy my beloved Arizona Coyotes.
Besides, picking up Palm for a fraction of what he was willing to pay for our hockey team, is the smarter move, at least Palm has some intellectual property.
No, Blackberry will continue on its current path for a while, since sales are still very strong, and they are addressing their biggest weakness, their browser by incorporating a WebKit based one. So, no change for BB, until it’s too late.
From what I know (which ain’t much), WebOS is a much more modern OS than what RIM currently has, yet switching to a brand new OS is never something to be taken lightly.
If they would provide free WebOS app replacements to current RIM customers, that might help, but they would still have to rejigger their entire server setup to work with the Palm OS.
Quick the ship is sinking grab the anchor!!!
What do you get when you add a beleagured to a has been????
It makes no sense for RIM. Why not just watch Palm wither on the vine? What assets will RIM get out of taking over Palm? The WebOS is likely the only thing.
RIM buys Palm and immediately trades it for the Carolina Hurricanes.
Gary Bettman reminds Balsillie that the trading deadline is over and all hell breaks lose again.
@Splat
HAHAHAHAHAHAHAHA
“…paled in comparison to Apple’s iPhone and Google’s Nexus One…struggling to compete with Apple’s App Store or Google’s Android Market.”
Classic example of begging the question. The writer tells us Google’s phone and market are successful by just saying so, as if those were established facts. The Nexus is a quantifiable flop and their store is a meaningless speck.
In other news, Chinese car manufacturer Geely has purchased Volvo from Ford. The industrial torch has been passed – first Europe, then America, now China. The only difference between cars and electronics is that cars have longer useable lifespans if cared for.
If RIM wastes its money on Palm, throwing away perfectly good money and crippling its own ability to fix its own messes, then expect some Chinese company in a year or two to swoop in and buy struggling PalmRIM on the cheap.
RIMM does have an old OS and if they are smart they would be doing something about it soon. It will prevent them from keeping up with the new devices that the Apples of this world are selling.
Palm sank because they took too long to develop a new OS. Remember the same thing almost happened to Apple. Thank Jobs that he came along and brought in the frame work for OSX.
By all accounts the new Palm OS has what it needs for next generation devices but Palm lack the ability to make decent hardware. RIM or someone else (M$, Nokia?) could snap up Palm, get a new OS for cheap and maybe have a platform to compete with Apple.
If RIM bought out Palm and released a WebOS phone, it would alienate current customers. While RIM may be losing market share, they are still in a strong position. Buying Palm to use WebOS would seem like a desperate move.
Sounds like a rimjob if there ever was one.
@ken
RIMs OS is limited in what it can do. They need something else to keep up with the market. Buying a fully functional OS for cheap is no desperate move.
Would you say Apple buying Next was desperation? Maybe it was but look where Apple are now!