What’s going to happen to RIM?

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With the recent news surrounding RIM, one has to wonder what’s in store for the company. Despite overwhelming support from Standard & Poor, this hasn’t been a good couple of weeks for RIM.

First and foremost is the new patent lawsuit they find themselves mired in. No matter what legal lessons RIM may have learned in their previous patent with NTP, no matter how strong their patents are, and no matter how suspicious Visto’s suit looks, fighting another legal battle so soon after finishing their previous one hurts RIM’s public image and therefore affects consumer and investor confidence.

It is also a continuing distraction that comes at a time when RIM needs all of its focus placed on the increase in competition for its market share. Although there are somewhat conflicting reports as to how well RIM is doing in the PDA market place right now, this much is sure: they’re being attacked from all sides. In terms of smartphones, Treo sales are neck and neck with RIM’s 71xx line. The coming weeks will also see the release of two strong competitors for RIM’s throne with Nokia’s E61 and Motorola’s Q (aka the ‘RAZRberry’). Both are impressive for different reasons. With their strong market presence and years of handset experience, Nokia knows how to build a device that can compete. Motorola is hoping to parlay their huge success with the RAZR line into a PDA that will ignite the consumer market in a similar fashion. Will it succeed? Let’s put it this way: have you ever seen a RIM product that looks as sleek and sexy as this?

RIM is also facing less, shall we say, ‘legitimate’ competition with China’s RedBerry knockoff. RIM just announced today that they’ve partnered with China Mobile to combat this, but one has to wonder: are they biting off more than they can chew right now?

What do you think? Can RIM survive the onslaught? Post a comment and let us know.

  • Andrew Allan

    The closer RIM wants to get to the consumer market (Moto Q, Treo, Nokia etc) the hotter it’s going to get in the kitchen for them. RIM established itself with a business-oriented product, and if they wish to remain a force they need to continue to focus on this more lucrative market. None of the other products offer the security and reliability of the BB line. I don’t see the CIA using Treos or extremely buggy Qs to communicate with Langley HQ!

  • Andrew Allan

    The closer RIM wants to get to the consumer market (Moto Q, Treo, Nokia etc) the hotter it’s going to get in the kitchen for them. RIM established itself with a business-oriented product, and if they wish to remain a force they need to continue to focus on this more lucrative market. None of the other products offer the security and reliability of the BB line. I don’t see the CIA using Treos or extremely buggy Qs to communicate with Langley HQ!