Monday, March 28, 2011

Lukewarm Reaction To Playbook Could Force Drastic Measures For RIM

Is Research in Motion (NSDQ: RIMM) turning into Palm (NSDQ: PALM), the next big prize in the mobile industry’s consolidation?

Two of the most important companies in the prehistoric era of the mobile computer (late 90s to mid 2000s) were Palm, inventor of the Palm Pilot and nurturer of the Treo, and RIM, which introduced a generation of business professionals to the value (and burden) of constant access to the office through the BlackBerry. But then came the iPhone, and Android. After a pretty hard fall and then a solid-but-unsustainable comeback with the Pre and WebOS, Palm was rescued by Hewlett-Packard (NYSE: HPQ) at the expense of a storied brand. RIM?s efforts to do something similar—bet the farm on a new operating system as well as a new form factor—are being treated with the worst of all reactions: indifference.

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