Talk of Apple Buying RIM Resurfaces
A familiar headline from the past has reclaimed its position in the news and across the blogosphere today.
Will iDevice maker Apple purchase the once formidable smartphone king Research in Motion? On a day like today, it's hard to deny the basement-bargain price Apple could possibly get for the struggling BlackBerry maker.
On Tuesday, Bloomberg reported that RIM's inventory of BlackBerrys and PlayBooks - that is, unsold product that the company can't get rid of - may now be worth more than $1 billion dollars. Internal numbers and research at Bloomberg show that the value of RIM’s in-house supplies grew 18 percent just in the last quarter.
And the problem is only growing worse for RIM as the BlackBerry maker can't find its once substantive footing against the likes of Apple and Google. Android and iOS-powered devices now account for the overwhelming majority of new smartphone purchases around the world today, with RIM barely registering on the radar in comparison.
“Clearly this stuff isn’t selling,” Neeraj Monga, an analyst at Veritas Investment Research, tells Bloomberg. Nonetheless, Monga is keeping a "buy" recommendation on RIM’s stock. Why? Because now more than ever it appears that RIM will be sold to a big bidder. “Despite all the writedowns they’re taking on the inventory, these inventory levels are not dropping.”
Naturally, Apple isn't commenting on the matter for now.