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RIM now worth less than Apple's App Store alone

post #1 of 65
Thread Starter 
Research in Motion's struggles in the smartphone market have driven its stock price so low that the company is worth less than the estimated value of just Apple's App Store.

At a price of $13.44, RIMM stock finished last week at a total value of just $7.04 billion. That's less than the $7.08 billion that Apple's App Store is estimated to be worth, as noted by author Brian S. Hall.

An analysis from Trefis places the value of the App Store at 2 percent of Apple's market cap. AAPL stock has a market cap of $354 billion, or more than 50 times greater than RIMM, and 2 percent of that means the App Store contributes $7.08 billion to Apple's market cap.

"The App Store is probably worth more than BlackBerry," Hall wrote. "All of BlackBerry. Just the App Store. Nothing else. Not the iPhone or iPod. Not Mac. Just the App Store."

RIM's stock has plummeted since the company announced last week that BlackBerry shipments saw a slight decline year over year while the company managed to ship just 150,000 PlayBook tablets last quarter. Meanwhile, Apple's iPad is likely to soon eclipse RIM's BlackBerry in total sales, with RIM guiding shipments of between 11 million and 12 million BlackBerry units next quarter, while Apple sold more than 11 million iPads last quarter.



RIM also announced last week that its forthcoming next-generation smartphone operating system, BlackBerry 10, has been delayed until the second half of 2012. That has prompted some analysts to wonder if the new platform will be too little, too late to the high-end smartphone market.

Apple's iOS App Store has been a key component in the company's continued success for the iPhone and iPad. One report last week indicated that iOS applications bring in 300 percent more revenue than their Android counterparts.

Apple's iTunes Store and App Store reportedly cost as much as $1.3 billion a year to operate. The company has maintained for years that makes little profit from the storefronts. Developers have received $2.5 billion in payments as a result of the App Store.
post #2 of 65
LOL. First one here, first one here.
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post #3 of 65
Quote:
Originally Posted by AppleInsider View Post

...That's less than the $7.08 billion that Apple's App Store is estimated to be worth, as noted by author Brian S. Hall.

"Author" Brian is gonna love this attribution. Seriously.
post #4 of 65
Dust in the wind...
post #5 of 65
It took TWO CEOs to make RIM what it is today..... An also ran company with no direction, or plan of action.......
post #6 of 65
Is this the part where someone suggest buying up RIM for the patents and removing a weakened competitor from the market?
post #7 of 65
I read 'worth less' as 'worthless' at first glance ....
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post #8 of 65
I tell you what does Canada have left, another Canadian companies up in flames. I am not sure if RIM lost their way or Wall street killed them like they killed Nortel.
post #9 of 65
Research in motion?

More like Retards without any notion.
post #10 of 65
Quote:
Originally Posted by AppleInsider View Post

....as noted by author Brian S. Hall.

An analysis from Trefis places the value of the App Store at 2 percent of Apple's market cap. AAPL stock has a market cap of $354 billion, or more than 50 times greater than RIMM, and 2 percent of that means the App Store contributes $7.08 billion to Apple's market cap.......

No. My analysis unambiguously shows that it's 1.63%. The App Store is still worth less.
post #11 of 65
I can't wait for the article when RIM's worth less than the price of an unlocked iPhone 4S.
post #12 of 65
Quote:
Originally Posted by Maestro64 View Post

I tell you what does Canada have left, another Canadian companies up in flames. I am not sure if RIM lost their way or Wall street killed them like they killed Nortel.

RIM lost its way. The two-headed monster of CEO put RIM in the position it's in. They were caught with their pants down when the iPhone was announced and did not have (and still doesn't have) a viable competitor. They were caught with the pants down again when the iPad was announced and rushed out an incomplete system only to watch it die. Meanwhile, Android rode on the iPhone's coattails and Microsoft is implementing it's umpteenth mobile OS.
post #13 of 65
RIM now worthless

Fixed it for ya ....
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post #14 of 65
Quote:
Originally Posted by jungmark View Post

RIM lost its way. The two-headed monster of CEO put RIM in the position it's in. They were caught with their pants down when the iPhone was announced and did not have (and still doesn't have) a viable competitor. They were caught with the pants down again when the iPad was announced and rushed out an incomplete system only to watch it die. Meanwhile, Android rode on the iPhone's coattails and Microsoft is implementing it's umpteenth mobile OS.

As a Canadian I have to say I agree the above . At one time I thought they could give Apple a rough time bytoellebills
post #15 of 65
Quote:
Originally Posted by jungmark View Post

RIM lost its way. The two-headed monster of CEO put RIM in the position it's in. They were caught with their pants down when the iPhone was announced and did not have (and still doesn't have) a viable competitor. They were caught with the pants down again when the iPad was announced and rushed out an incomplete system only to watch it die. Meanwhile, Android rode on the iPhone's coattails and Microsoft is implementing it's umpteenth mobile OS.

As a Canadian I have to say I agree the above . At one time I thought they could give Apple a rough time, but as each quarter goes by we have now reached the point. RIM is dying .
post #16 of 65
RIM's management is to blame. They have showed their investors and their consumers that they can't hang tough when serious competition enters the game.
post #17 of 65
Quote:
Originally Posted by jungmark View Post

RIM lost its way. The two-headed monster of CEO put RIM in the position it's in. They were caught with their pants down when the iPhone was announced and did not have (and still doesn't have) a viable competitor. They were caught with the pants down again when the iPad was announced and rushed out an incomplete system only to watch it die. Meanwhile, Android rode on the iPhone's coattails and Microsoft is implementing it's umpteenth mobile OS.

I'd have given the PlayBook a little more respect if RIM hadn't announced that "Amateur Hour is Over" when they released it. There's still a chance for it if they're willing to sell it at cost to buy market share. A $300 PlayBook with the 2.0 update coming early next year might be semi-compelling.
post #18 of 65
Quote:
Originally Posted by Curmudgeon View Post

There's still a chance for it if they're willing to sell it at cost to buy market share.

I don't think so.

Blackberry Sales Slowing Despite Lower Prices

RIM lowered the prices for the Blackberry Playbook for the holidays taking $300 off the price of each of their 7 inch tablet versions in an effort to move additional inventory.

http://www.techieinsider.com/news/13594
post #19 of 65
Quote:
Originally Posted by Curmudgeon View Post

A $300 PlayBook with the 2.0 update coming early next year might be semi-compelling.

A recent fire sale at $200 (RIM employees around town are getting them and reselling them for $99) says the Playbook is dead. I wouldn't hold my breath for a 2.0 update.
post #20 of 65
it used to be thiz was a verry insitful place.to get apple news. wtf has happened. we all get excited reading about a competitor to apple having issues? wow, too much for me. everyone here can take this childish fanboy attitude and enjoy it. ill be leaving to get news from more grown up sorces.
post #21 of 65
Quote:
Originally Posted by jungmark View Post

RIM lost its way. The two-headed monster of CEO put RIM in the position it's in. They were caught with their pants down when the iPhone was announced and did not have (and still doesn't have) a viable competitor. They were caught with the pants down again when the iPad was announced and rushed out an incomplete system only to watch it die. Meanwhile, Android rode on the iPhone's coattails and Microsoft is implementing it's umpteenth mobile OS.

I remember thinking back in 2003 (when everyone was going gaga over their Blackberry) how it was essentially just a phone with email. I didn't get what all of the fuss was about.

I guess the backend server lock-in was smart for the corporate market (and that's what's keeping them alive now). But from a consumer standpoint (or, I guess, a consumer who works in technology), I was unimpressed.

At the time I was looking for a convergence device (phone, email, music, camera), and the Blackberry wasn't it. Not to mention it didn't work with Mac, which was a deal breaker for me. Being ugly didn't help it either.

So yeah, as someone who has always had a keen interest in truly innovative technology, I'm not really all that surprised that RIM is where they are now.
 
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post #22 of 65
Quote:
Originally Posted by CanadianThomas View Post

it used to be thiz was a verry insitful place.to get apple news. wtf has happened. we all get excited reading about a competitor to apple having issues? wow, too much for me. everyone here can take this childish fanboy attitude and enjoy it. ill be leaving to get news from more grown up sorces.

No the joke is what RIM has become thru mismanagement and a lack of adaptation to the market. Feel free to go elsewhere, but that won't change RIM being a complete fuck up. Sorry you can't watch a Canadian company get reamed, but they brought it on themselves
post #23 of 65
Quote:
Originally Posted by CanadianThomas View Post

it used to be thiz was a verry insitful place.to get apple news. wtf has happened. we all get excited reading about a competitor to apple having issues? wow, too much for me. everyone here can take this childish fanboy attitude and enjoy it. ill be leaving to get news from more grown up sorces.

You sound like a butthurt Canadian.

Don't blame Apple fans because RIM sucks.

And amateur hour is over indeed, with RIM being a prime example of that.
post #24 of 65
EIther some crooks are sorely disappointed or RiM found a way to make a profit on the PlayBook by filing an insurance claim.
Seriously though, is there any viable avenue for RiM to pull itself out of this nosedive? I can see Nokia and MS holding on for years and then finding a way to crawl back with decent innovations but I can't see how RiM will make it work.

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post #25 of 65
Quote:
Originally Posted by Tallest Skil View Post

I can't wait for the article when RIM's worth less than the price of an unlocked iPhone 4S.

It's when they announce that you get two extra BlackBerry's if you take at least one free PlayBook.
post #26 of 65
Quote:
Originally Posted by Tallest Skil View Post

I can't wait for the article when RIM's worth less than the price of an unlocked iPhone 4S.

Why, does it make your life better to see that the choice in phone you made is justified by the masses?
post #27 of 65
You've got to be kidding...

I could have shown you what RIM is worth, but I just pushed the handle and flushed.
post #28 of 65
Quote:
Originally Posted by CanadianThomas View Post

Why, does it make your life better to see that the choice in phone you made is justified by the masses?

post #29 of 65
Quote:
Originally Posted by SSquirrel View Post

No the joke is what RIM has become thru mismanagement and a lack of adaptation to the market. Feel free to go elsewhere, but that won't change RIM being a complete fuck up. Sorry you can't watch a Canadian company get reamed, but they brought it on themselves

No, thats not it at all. I don't care if Rim dies. Dont care at all. I'm just wondering why t makes the Apple fans here so happy? I just don't get it.
post #30 of 65
Quote:
Originally Posted by Apple ][ View Post

You sound like a butthurt Canadian.

Don't blame Apple fans because RIM sucks.

And amateur hour is over indeed, with RIM being a prime example of that.

Dude, nothing in my post defends Rim, I do not care at all what happens to them. Just don't understand why you feel so good about it?
post #31 of 65
Quote:
Originally Posted by Tallest Skil View Post


I don't get it?

Just so you all know. I'm an Apple tech for a living and have been an Apple computer user since day 1. I still have my original Apple ][. I just do not see why the Apple fans get so excited by bad news to others. This place has almost become as bad as Mac Daily News.

Before the intel switch the comments here were of a much higher calibre.
post #32 of 65
Quote:
Originally Posted by CanadianThomas View Post

I don't get it?

Just so you all know. I'm an Apple tech for a living and have been an Apple computer user since day 1. I still have my original Apple ][. I just do not see why the Apple fans get so excited by bad news to others. This place has almost become as bad as Mac Daily News.

Before the intel switch the comments here were of a much higher calibre.

Maybe it's not about the demise but the correct prediction of a demise made many years ago. People tend to feel good when they are proven correct.

Not that anything is proof yet as Apple's market cap was below RiM's (though when you adjust for 15 years of inflation RiM is worse off) at one point and they pulled themselves up and out of the bog. I don't see how RiM won't be another Palm getting subsumed into another company like fetal resorption but I welcome such a comeback. People tend to feel good about underdog stories, too.

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post #33 of 65
Quote:
Originally Posted by CanadianThomas View Post

Dude, nothing in my post defends Rim, I do not care at all what happens to them. Just don't understand why you feel so good about it?

Well, I will explain it to you.

I love to see morons fail, it gives me many LOL's.

Especially loudmouthed, clueless companies who release poor products and declare that "Amateur hour is over"

They all deserve to go bankrupt. And it also gives me pleasure, because it makes many Apple haters even madder.
post #34 of 65
Quote:
Originally Posted by CanadianThomas View Post

it used to be thiz was a verry insitful place.to get apple news. wtf has happened. we all get excited reading about a competitor to apple having issues? wow, too much for me. everyone here can take this childish fanboy attitude and enjoy it. ill be leaving to get news from more grown up sorces.

Bad Link
post #35 of 65
Quote:
Originally Posted by CanadianThomas View Post

it used to be thiz was a verry insitful place.to get apple news. wtf has happened. we all get excited reading about a competitor to apple having issues? wow, too much for me. everyone here can take this childish fanboy attitude and enjoy it. ill be leaving to get news from more grown up sorces.

Bye Bye
post #36 of 65
Quote:
Originally Posted by CanadianThomas View Post

it used to be thiz was a verry insitful place.to get apple news. wtf has happened. we all get excited reading about a competitor to apple having issues? wow, too much for me. everyone here can take this childish fanboy attitude and enjoy it. ill be leaving to get news from more grown up sorces.

Get some grammar and spelling lessons while you're there.


Quote:
Originally Posted by CanadianThomas View Post

No, thats not it at all. I don't care if Rim dies. Dont care at all. I'm just wondering why t makes the Apple fans here so happy? I just don't get it.

After that "Amateur Hours is Over" quip, it's nice to see such arrogance leading to failure. RIM talked the talk, then released a half-baked product missing the most rudimentary of functions. They DESERVE their failure.
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post #37 of 65
Quote:
Originally Posted by CanadianThomas View Post

Dude, nothing in my post defends Rim, I do not care at all what happens to them. Just don't understand why you feel so good about it?

At one point RIM was the company to beat. It really isn't that long ago. I don't feel good about them going down. I pity their management - it must be unbelievably hard to get up in the morning to face ever more doom and gloom.

Maybe RIM can scale right back and become a strong niche player, and build from there, like Apple did upon the return of SJ. The problem is that the mobile phone space has become MUCH more competitive with some MAJOR players vying for position. With RIM still so far off coming out with a new OS it is hard to see how they can re-take lost ground. They are a one trick company and have been beaten at their own game.
post #38 of 65
Apple should just buy them to get all of the patents.
post #39 of 65
Quote:
Originally Posted by old-wiz View Post

Apple should just buy them to get all of the patents.

If any decent rumour leaked that Apple was going to buy RiM TW stock would jump and the buy would likely be around what Google paid for Moto. Plus, does Apple really need pager patents?

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post #40 of 65
Quote:
Originally Posted by CanadianThomas View Post

No, thats not it at all. I don't care if Rim dies. Dont care at all. I'm just wondering why t makes the Apple fans here so happy? I just don't get it.

Perhaps a lot of it has to do with RIM's original comments about the arrival of the iPhone. Sort of like Michael Dell's comments these things get filed away for the day they get to eat their words. Remember Microsoft held a funeral for the iPhone ... they are on my list to smile at when they crash and burn with their iPhone challenge.
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