Research in Motion will no longer be an independent company by the end of the first quarter of 2013, according to Eric Jackson, manager of Ironfire Capital.
Jackson did not mince his words during a podcast interview with Business Insider. “It’s a bad software company,” he said, adding that he didn’t believe RIM was capable of changing quickly enough to save itself.
Part of the problem, he said, is that it has “bad cofounders, and they’re going to drive this company straight into the ground.” Jackson does not hold any shares of RIM, although he had previously shorted the stock.
RIM just announced that the first device using its new BlackBerry OS 7, the Torch 9810, will be available by the end of August. It hopes to prevent current users from migrating to other, more popular smartphones by including a 3.2-inch touch screen with a slide out keyboard, 1.2-gigahertz processor, 5-megapixel camera and 8 gigabytes of built-in storage. The Torch 9860 and Bold 9900, will follow later in 2011, with an update of the operating system and software expected during 2012.
No matter how sophisticated and excellent the new BlackBerrys are, however, Jackson does not believe the parent company will survive. RIM now has slightly less than 10 percent of market share, a drop Jackson said may well be impossible to turn around.
Business Insider post and podcast – http://tinyurl.com/44u3twf