As Apple goes up, Research In Motion goes down

Coincidence or scientific proof that people are trading in their BlackBerry's for iPhones?

By Benzinga Oct 14, 2011 4:22PM
By Louis Bedigian, Benzinga Staff Writer

Over the last six months, Apple's (AAPL) success has had an inverse affect on Research in Motion (RIMM). While this might not come as a surprise to the million people who have pre-ordered the iPhone 4S, there was a time -- not too long ago, in fact -- when Research in Motion was a thriving company.


But as you can see by comparing the stock price performance over the past year, the BlackBerry maker has been dropping much faster than Apple is growing. This suggests that Apple isn't the sole cause of RIM's problems. Google (GOOG) Android could be a significant factor as well.


However, I suspect it's even worse than that. I'm betting that, in addition to the customers Apple and Google took from RIM, there are several customers who were going to leave the brand anyway. This is essentially what has happened to Nokia (NOK). When is the last time you met someone that had a Nokia phone? Soon, you'll be asking yourself that question about RIM.


While RIM execs may have lost confidence in the brand (all the while making foolish announcements that won't carry the firm to victory), BlackBerry is still a fairly strong brand. Not even a worldwide outage will kill off the ailing phones. Not yet, at least.


Going forward, however, things aren't looking good for RIM. When Google chose to acquire one of its dying competitors, it could have easily looked for a company with a strong brand of phones. Instead, Google chose Motorola (MMI), the once-great phone, cable box and random device manufacturer. Granted, RIM wouldn't come packaged with the same quality of patents that Motorola provided. RIM wouldn't have come with a way for Google to enter the cable box market. It does, however, currently manufacture a more popular line of phones.


But we know how fickle popularity can be, right?


More from Benzinga:

2Comments
Oct 17, 2011 9:10AM
avatar
Well of course Apple and Research in Motion's success/failure are connected. Windows and Mac OS' success/failure are related as well.
Oct 14, 2011 5:46PM
avatar
Glad to see someone comparing AAPL and RIM. Seems like the majority of news revolves around RIM or AAPL in general, typically not together, so it's nice to see a comparison between the two.

I'm glad you mentioned Nokia, since very few think to mention the company at all. 

Solid points. 

I wonder if RIM will stay alive simply because it would be too much of a challenge to switch.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

109
109 rated 1
276
276 rated 2
421
421 rated 3
629
629 rated 4
511
511 rated 5
538
538 rated 6
686
686 rated 7
507
507 rated 8
331
331 rated 9
109
109 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
KOGKODIAK OIL & GAS Corp10
UPLULTRA PETROLEUM Corp10
TAT&T Inc9
COPCONOCOPHILLIPS9
DVNDEVON ENERGY CORPORATION9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.