After all, we're getting to a point where you have to wonder 1) how long RIM can continue to lose money and lay off staff before going the way of Nortel, and 2) whether RIM has assets worth enough to any potential buyer.
Eric Savitz at Forbes wrote about this on Tuesday, quoting a note to clients from Wedge Partners analyst Brian Blair:
“We don’t see an M&A opportunity near term, mainly because we don’t believe RIM has much to offer. If there was value in the Network Operating Center back in the day, it seems to have faded. If we have learned one thing from the iPhone, it’s that the device’s security is ‘good enough’ for the government and ‘good enough’ for the enterprise. We have seen every type of company replace BlackBerry with the iPhone over the last 3 years. If there is value in RIM’s Blackberry servers placed around the world in large numbers, that value is in decline, as those same servers continue to get ripped out on what seems like a monthly basis.”
Meanwhile, in the face of this grim reality that the entire technology world can see, RIM clings to the truly silly and ridiculous, stating in response to the latest rumors that it intends to regain its former glory under the bold and awesome turnaround plan forged by new CEO Thorsten Heins. Now there's a fantasy.
RIM will report earnings on Thursday. Expect more stonewalling, denial and delusion about the company's future.
Shares (NASDAQ: RIMM) were up 1.1% to 9.20 in early Tuesday afternoon trading after dipping to 8.83, their lowest point since 2003.