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Education Insider

Should Research in Motion needs to ditch its BlackBerry handset business to survive?

With disappointing quarterly results, dismal outlook for Blackberry sales and word on streets Research in Motion would delay the introduction of new devices, technology experts and investors are asking Should Research in Motion (NASDAQ: RIMM) needs to ditch its BlackBerry handset business to survive?

RIM should sell its handset business and monetize its patent portfolio while retaining the high-margin services business. This is a easy way out for the company. Research in Motion’s spidery, data-crunching network, unique among handset makers, has been a great cornerstone of the BlackBerry’s growth – with email and IM routed through Research in Motion’s own enterprise servers and data centers, where it is encrypted and pushed out to subscribers.

Shares in the Canadian smartphone maker fell another 4 percent, gives RIM a market capitalization of less than $7 billion. That does not include long-term investments, property and intangible assets such as patents. RIM values those additional assets at about $7 billion.

Why should Research in Motion needs to ditch its BlackBerry handset business to survive? If you’re a BlackBerry customer — tell me the difference between the Blackberry Torch 9850, 9860, 9800 and 9810? There are so many models and features, nobody can clearly tell them apart. RIM itself, in a statement to the New York Times, acknowledged that it didn’t even know how many models were on the market!

Dr. Amarendra Bhushan Dhiraj

Dr. Amarendra Bhushan Dhiraj

CEO and editorial director at CEOWORLD Magazine
Dr. Amarendra Bhushan Dhiraj is the CEO and editorial director at CEOWORLD magazine, the leading global business magazine written strictly for CEOs, CFOs, top managers, company directors, investors, senior executives, business leaders, high net worth individuals, and the most globally powerful men and women.
Dr. Amarendra Bhushan Dhiraj

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