Commenting on RIM’s quarterly earnings announcement, Victor Basta, director of Magister Advisors said:
“Under their new leadership, RIM are focused on operational improvements but the real issue is fundamentally strategic: why should RIM exist when all other smartphone makers are developing better products faster?
RIM spends billions on R&D, but they consistently deliver me-too products and are outpaced in a market that demands innovation.
RIM has already lost the consumer battle and its main asset is its enterprise customer base, so retrenching to a corporate-only focus makes sense.
In our view they should sell the company while that corporate customer base remains intact.
There would no shortage of logical potential buyers – from those focused on enterprise mobility (e.g., SAP/Sybase) to those with a strong interest in the device marketplace (e.g., HP, Huawei). Valuations in the mobile space are currently strong, which favour a transaction for RIM.”
