This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

RIM Rivals Gear Up

The case against Research In Motion (RIMM) focuses on two threats to the company: competition and a long-running patent dispute.

While the BlackBerry maker has suffered a string of setbacks on the legal front , the competitive threat hasn't amounted to much so far. But that might be changing.

On Wednesday, Nokia (NOK) announced plans to purchase Intellisync (SYNC), a wireless software company. The move unites the world's biggest handset maker with one of the leading second-tier players in the market to deliver email, applications and other data to mobile devices.

But the acquisition is only the latest in a series of moves by RIM's rivals that could call into question the company's continued dominance in wireless email, all of which signal that RIM's business will soon be commoditized, says Dave Schamens, a partner at Invictus Funds.

"There's no question that RIM has got a great product, but these other guys are chomping at the bit to bypass RIM's monopoly," he says. Whether Microsoft (MSFT), Palm (PALM), Intellisync, Nokia or someone else is the winner is unclear, but "RIM is going down no matter what," adds Schamens, whose firm is long Microsoft but has no other positions in the space.

Investors as a whole seemed to express similar feelings doubts after Nokia's announcement. RIM's shares closed Wednesday off $2.82, or 4%, to $64.68.

The deal is targeted at enterprise and other business customers, Nokia said in a statement, and the acquisition will potentially allow it to deliver email and other data to a range of devices -- both those made by the company and those made by rivals such as Palm or Motorola (MOT).

Intellisync is just one company that's been trying to edge into RIM's turf. On the software side, giants such as Microsoft and Novell (NOVL) and smaller companies such as privately held Good Technology and Seven offer wireless email services. On the hardware side, most of the major vendors -- in addition to Nokia -- have come out with devices that can tap into corporate email servers.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,040.92 -12.79 -0.07%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs