Wednesday, August 8, 2012

Research In Motion Limited (NASDAQ:RIMM ) and Samsung – Will They, Won’t They - NOK

The rumour-mongers are at it again, linking Research In Motion Limited (USA)(NASDAQ:RIMM) and Samsung Electronics.

Can RIMM Continue To Bounce Back? Get Free Trend Analysis

The Canadian company, which makes the Blackberry devices, may decide to offer the license to its Blackberry 10 operating system to Samsung, website 24/7 Wall Street reported on Wednesday, quoting an analyst at Jefferies.

"Among RIM’s problems is a lack of scale to manufacture millions of handsets with dozens of variations. That is not a problem for Samsung, the global leader in smartphone sales,' the report said.

"RIM desperately needs a white knight to carry its Blackberry 10 OS to market, and there is no better candidate than Samsung. But Samsung doesn’t need RIM, unless the Korean firm wants to get its hands on RIM’s subscriber base and lower its dependence on Google. At least that’s what the Jefferies analyst sees as Samsung’s motivation," the report said.

However the report also raised some pertinent points. Why should Samsung pay a license fee for RIM's operating system when it has free access to Google's operating system?

Paying a license fee will not boost Samsung's sales margins, where Apple Inc.(NASDAQ:AAPL) has a definitive edge over its rival, with whom it is locked in about a dozen legal court cases across several geographies over patent issues.

Find Our Recent report On The Smartphone Market

Getting a license from RIM at this juncture also will not do the Korean handset maker any good since it has already committed to Microsoft to launch a smartphone in the near future with its Windows operating software.

Again, RIM is no longer the force it was earlier in the smartphone segment and has seen declining sales over the months.

Shares in RIM were trading up 6.3 percent at $7.77 on the Nasdaq on Wednesday.

No comments:

Post a Comment

Privacy Policy | Legal Disclaimer