Saturday, June 30, 2012

Microsoft Should Use RIM’s Likely RIP to Position Itself to Corporations

by Holly Shoemaker

Microsoft should take advantage of the continuing decline of Research in Motion (RIM). Amidst layoffs, and numbers that again fell below expectations, RIM's stock hit an all-time low yesterday. The latest developments and the continued delay of the BlackBerry 10 provide an opportunity for Microsoft to position its Windows Phones and the Surface.

RIM's Q1 2013 Figures at a Glance

The company reported the following:
  • Revenue of $2.8 billion, down 33 percent from $4.2 billion the previous quarter.
  • That it shipped 7.8 million BlackBerrys and 260,000 PlayBook tablets.
  • A workforce reduction of 5,000 employees.
  • That its revenue fell by 42.7 percent
The company also announced that the chipset it needs for its BlackBerry 10 phones will not be available until 2013. Initially, RIM said the smartphone would come out late in 2012.

I am not going to discuss the possible sale scenarios or the rumors that Microsoft or Nokia could buy RIM. They have already been discussed and while Microsoft could use some components, mainly related to email infrastructure, Microsoft should take independent action related to rebranding and advertising. Microsoft does not have to purchase RIM to do that.

Concluding Thoughts

I see the latest bad news from RIM as an opportunity for Microsoft to keep in line with what it said when it announced the Surface. That it wanted hardware to complement its software. This is a prime opportunity to promote its new Windows Phones coming in the fall, Windows 8 and the Surface, but this time, on a B2B scale. 

As previously stated, I associate Microsoft with business and I see Apple as the company that appeals largely to individual consumers. However, Apple has said that almost all Fortune 500 companies approve of the iPhone for their networks. Therefore, Microsoft should focus some attention on advertising and even talking to BlackBerry developers to see how RIM's likely RIP, could actually help Microsoft.

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