RIM is looking to license out BlackBerry 10 after all.
Looks as though RIM has decided to take the licensing route after all, allowing manufacturers to create their own BlackBerry 10 devices. Bloomberg reports that the new platform is in the final stages of testing, and that the company is currently trying to determine how other smartphone makers will be able to use RIM's range of products.
On Monday, RIM CEO Thorsten Heins said that the BlackBerry 10 platform is based on QNX, software that's already licensed out to be used in cars, nuclear plants and military drones. "QNX is already licensed across the automotive sector -- we could do that with BB10 if we chose to," Heins admitted. "The platform can be licensed."
Heins said that he wants RIM to expand beyond smartphones and tablets, moving into other areas of mobile computing and what he describes as "machine-to-machine" communications. Still, for now the smartphone sector is the company's bread and butter, and BlackBerry 10, which is essentially a fresh start for the fledgeling company, will be the make-it-or-break-it factor come 1Q13.
Licensing out the new OS has been a topic of discussion within RIM's offices for some time as the company weighs its future. Previously there have been reports that Samsung had an interest in licensing the new BlackBerry platform, and IBM has even talked about acquiring the enterprise aspect if BlackBerry 10 actually tanks next year.
Presently RIM produces its own products, but thanks to the success of Apple's iPhone and iPad, and Google's saturation of the smartphone sector using Android, RIM is looking beyond serving as a sole Blackberry device maker by licensing out BlackBerry 10 so that the new platform can saturate the market more quickly. Currently Google's Android dominates the market, a place RIM could arrive if it in fact takes the licensing route as indicated.
"We’re here to win,” he said, referring to how BlackBerry 10 will change its position in the smartphone market. "We’re not here to fight for third or fourth place."
RIM is seemingly riding on fumes as it works to bring BlackBerry 10 devices to the market in 1Q13. The company has placed its bets and is depending on the platform's upcoming success. Until then, investors are riding a stock roller coaster as prices rise and fall due to various reports. Company shares fell 2.1-percent to $8.12 at 2:47 p.m. today in New York after six straight days of gains. Overall the stock has lost 95-percent of its value since its mid-2008 high.
As an example, for years the PC market was dominated by Microsoft's Windows OS platform. Consumers were forced to accept a lacklustre product with poor stability, but had no viable alternative to switch to (not that there were not options, just none that were viable for the majority of users). Windows users complained and Microsoft placated everyone with occasional fixes, but until a viable alternative appeared the status quo was maintained.
In the smartphone market now, there are the Apple fanatics (iSheep) that believe every product released is manna from heaven, and the Android supporters (fAndroids) that are content to accept a fragmented OS stream with a lengthy update time line on various hardware platforms. These two groups, along with possible WP8 supporters, believe with vehemence, that RIM should be driven from the market and the option removed from consumers. Fewer options and less competition does not lead to improved products and innovation, it leads to stagnation.
Both IBM and Apple were early innovators in their markets, both stagnated and were marginalized, and both were revitalized to become market leaders. RIM is attempting to revitalize itself and should be given that opportunity, before all the detractors rush in to sign the death certificate. Should RIM succeed, the market and consumers will benefit. Should RIM fail, then so be it.
Why would they sell anything? They don't need the money, they have tons of it. What they need is a compelling new product.