RIM now worth less than Apple's App Store alone

Posted:
in iPhone edited January 2014
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.
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Comments

  • Reply 1 of 64
    sdw2001sdw2001 Posts: 16,928member
    LOL. First one here, first one here.
  • Reply 2 of 64
    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.
  • Reply 3 of 64
    Dust in the wind...
  • Reply 4 of 64
    maecvsmaecvs Posts: 129member
    It took TWO CEOs to make RIM what it is today..... An also ran company with no direction, or plan of action.......
  • Reply 5 of 64
    ssquirrelssquirrel Posts: 1,196member
    Is this the part where someone suggest buying up RIM for the patents and removing a weakened competitor from the market?
  • Reply 6 of 64
    MacProMacPro Posts: 17,995member
    I read 'worth less' as 'worthless' at first glance ....
  • Reply 7 of 64
    maestro64maestro64 Posts: 4,453member
    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.
  • Reply 8 of 64
    apple ][apple ][ Posts: 8,360member
    Research in motion?



    More like Retards without any notion.
  • Reply 9 of 64
    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.

  • Reply 10 of 64
    I can't wait for the article when RIM's worth less than the price of an unlocked iPhone 4S.
  • Reply 11 of 64
    jungmarkjungmark Posts: 6,647member
    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.
  • Reply 12 of 64
    RIM now worthless



    Fixed it for ya ....
  • Reply 13 of 64
    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
  • Reply 14 of 64
    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 .
  • Reply 15 of 64
    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.
  • Reply 16 of 64
    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.
  • Reply 17 of 64
    apple ][apple ][ Posts: 8,360member
    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
  • Reply 18 of 64
    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.
  • Reply 19 of 64
    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.
  • Reply 20 of 64
    auxioauxio Posts: 1,959member
    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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