This Day On The Street
Continue to site
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

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 - Get Report) announced plans to purchase Intellisync (SYNC - Get Report), 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 - Get Report), 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MSFT $53.93 0.00%
NOK $7.19 0.00%
SYNC $1.73 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs