This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

RIM Rivals Gear Up

To date, RIM has dominated the industry, both in software and hardware. But the competition seems to have stepped up in recent months with a string of moves by its rivals.

In September, for instance, Nokia debuted a new wireless email service targeted at business customers. Microsoft recently rolled out an update to its popular Exchange email server that allows the software to "push" email to customers' wireless devices. And in September, Palm, maker of the trendy Treo smartphone, announced a new version of the device that will run Microsoft's mobile operating system and tie into software giant's email service.

RIM, however, hasn't been sitting still. The company has moved to blunt the competitive threat in part by promoting its growing ties with other handset makers. Last month, for instance, it announced its own deal to allow Palm's Treo to connect with RIM's BlackBerry email servers. And both Nokia and Sony Ericsson have rolled out new devices in recent months that will connect to RIM's service.

But the problem for RIM in the marketplace is that its dominance may be challenged by a closing technology gap, says Schamens, who says he doubts that Intellisync's technology is the future, but that one of RIM's competitors clearly is.

"I think somebody is going to come out with a better mousetrap, and it will work just as well as RIM's," he says. "With the way technology moves the BlackBerry system is not going be special anymore."

A RIM representative did not return a call seeking comment.

But others see a more limited threat. Nokia's deal with Intellisync could definitely increase the competition for RIM with consumer and smaller and medium-sized business customers, says one buy-side analyst who asked not to be named. But it's unlikely to supplant RIM in the enterprise market, he says.

RIM is fairly entrenched with those enterprise-class customers, and for now, the BlackBerry service is generally easier for those customers than those of its competitors, because they typically have to deal with fewer vendors, says the analyst, whose firm is long Microsoft and Nokia.

Other analysts saw even less risk from the Intellisync deal. The company has had some traction with consumer and "prosumer" customers and has a relationship with Nokia, noted Rob Sanderson, an analyst with American Technology Research. But the company seems to have little presence in the enterprise sphere, particularly in delivering wireless email, he said.

"Bears are almost certain to call this a 'landscape changing' event and that RIM's days are numbered, although we could not disagree more," says Sanderson, a longtime bull on RIM, whose firm does not do investment banking. "We believe the selloff in RIMM shares is a misread by the market and would be buyers of weakness."

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • 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