<![CDATA[Gawker: valleywag, rim]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, rim]]> http://gawker.com/tag/valleywag/rim http://gawker.com/tag/valleywag/rim <![CDATA[RIM the next takeover target?]]> Shares of Research In Motion have declined from $148 to $60 in four months, falling along with most tech stocks. The difference between RIM and, say, Yahoo? Microsoft still wants to buy RIM, say some analysts cited by Reuters. Forget Google's still-not-on-the-market Android phones; RIM's BlackBerry is the only real competition for Apple's iPhone.

Like Apple, RIM offers not just the hardware but the software and services that run on top of it; RIM does Apple one better by also selling back-end servers that companies install to manage their workers' email. Microsoft is in that same business, but it's not as good as tying everything together as RIM is. The speculation is that RIM shares would have to drop to $40 or so, at which point Microsoft might bid $50 a share, or $28 billion for the company. This much is not speculation: RIM would be a better buy than Yahoo.

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<![CDATA[Microsoft to Congress: Please get it together, you're making us nervous]]> Turns out the tech industry is not immune from the Wall Street meltdown. Apple stock dropped 16 percent yesterday. RIM, Google, Nokia and Yahoo share prices also saw double-digit drops. Yahoo shares hit a five-year low, down 10.8 percent to $16.88. Microsoft shares stayed less than five percent below the markets open until Congress failed to pass a bailout plan. The closed at $25.01, down 8.7 percent. The drop seems to have panicked Microsoft a bit, which did the only thing it could do when there was nothing for it to do: issue a statement. "Microsoft strongly urges members of the U.S. House of Representatives to reconsider and to support legislation that will re-instill confidence and stability in the financial markets," said Brad Smith, Microsoft's top lawyer. "This legislation is vitally important to the health and preservation of jobs in all sectors of the economy of Washington State and the nation, and we urge Congress to act swiftly." If it would help, we're certain Mr. Smith is willing to promise a cherry on top.

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<![CDATA[Demand waning? Apple cuts iPhone inventory 20 percent]]> Apple had planned to build 18 million iPhones in 2008. Pacific Crest Securities, an analyst which closely watches Apple's supply chain, says Apple has cut that number to between 14 million and 15 million. BlackBerry maker RIM announced lower-than-expected quarterly sales last week, so perhaps Apple is seeing a similar softening in demand. Another possibility: Apple plans to quit selling its iPhone with 8GB of storage and sell its 16GB model for $199 instead. The news is not helping Apple shares, which are already down 13 percent on analysts' predictions that strapped consumers will buy fewer Macs.

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<![CDATA[5 tech companies getting soaked by Wall Street's meltdown]]> If Silicon Valley is mentally disconnected from this week's Wall Street mess, it's because ad-supported companies dominate the Valley these days. High-net-worth investors aren't reeled in with cheap banners, so the demise of Lehman Brothers or Merrill Lynch hardly pinches budgets. Lehman spent just $501,900 on ads, both online and off, in the first half of 2008. Merrill Lynch, which has a much larger consumer business, still only spent $38 million on advertising last year. Still, some 150,000 people will lose their jobs in this week's fallout. That's a lot of tech infrastructure no one will want to pay for anymore. Lehman, for example, spent $309 million on IT last quarter alone. What's more, Lehman's investment banking connections run deep in the Valley's world of startups, VCs and big company buyers. Below, five tech companies that find themselves wishing they could unleash themselves from Wall Street's fate.

The New York Times reports that between shots of hard liquor at the office yesterday, one Lehman employee shouted: “Are they going to take my BlackBerry? Come on, come get it.” Oh, they will. Research in Motion's BlackBerry sales were already disappointing in August. With Lehman expected to lay off most of its 29,000 Lehman employees, Merill Lynch and Bank of America expected to cut some 20,000, and plenty of Bear Stearns bankers still unemployed, September could be worse. Their ex-employers may not repossess the hardware, but RIM makes its steadiest profits from the recurring monthly service fees paid by businesses to push corporate email to the devices.

New York's most successful tech company is financial information provider Bloomberg, which somehow manages to charge companies thousands of dollars a year per subscription for access to the terminals that every Wall Street trader has on his or her desk. But with Lehman cutting 29,000 and Bank of America cutting another 20,000, Bloomberg's already low-volume business just got smaller at a time when it is facing redoubled competition from Thomson Reuters.

The benefit of a merger between the likes of Bank of America and Merrill Lynch is that the new company can combine their infrastructures and cut redundant costs. Unfortunately for IP telephony provider Cisco, it's one of those redundant costs. After flirting with Avaya for a couple of years, Merrill Lynch returned as a Cisco client in 2005. Last May, Cisco announced it would deploy 100,000 phones to Bank of America. When clients combine, vendors lose.

On February 27, 2007, Salesforce.com announced its largest deal ever, signing Merrill Lynch as a client and adding 25,000 new subscribers. How will Salesforce.com fare now Merrill and those 25,000 accounts are moving to Bank of America? At worst, Bank of America will insist Merill's brokers and their assistants use the Soffront CRM software the bank signed up for in March. At best, Salesforce.com will lose several thousand accounts as the new company seeks to reduce reduncancies and lays off as many as 20,000.

Investment bank Marlin and Associates helped Rupert Murdoch and News Corp's subsidiary Fox Interactive find MySpace, but otherwise it's been Lehman Brothers advisers bringing their favorite startup clients to the Murdoch empire. IGN Entertainment hired Lehman in the summer of 2005 and sold to Fox Interactive in the fall. Then in April 2007, photo-sharing site Photobucket hired the investment bank only to sell to Fox in May of the same year. Without Lehman Brothers, how will News Corp. grow on the Web?

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<![CDATA[iPhone 3G vs. Blackberry — if you switch, are you screwed?]]> "BlackBerry is the only way to go ... the rest are for kids," says one of the 400 comments to Web Worker Daily's thorough comparison of iPhone 3G's pros and cons versus a BlackBerry for use on the job. iPhone crazies are everywhere, so in response I've summarized Web Worker's pro-BlackBerry argument for those of us who pay the mortgage with a road-battered 8703e.

If the main reason you have a BlackBerry is to check your email across multiple accounts (let’s say work & personal), don’t even think about switching. You will be disappointed.

The iPhone is clearly a 2-handed device. I got pretty good at getting around my BlackBerry with one hand…don’t see that happening any time soon on the iPhone.

Long time BlackBerry users know you can also hold down on a letter to capitalize it and configure multiple dictionaries and shortcuts (so if you type a word or phrase often you can enter it into the dictionary to autocomplete). Someone please come up with a way to port TextExpander to the iPhone and you can name your price.

The BlackBerry will always have better battery management simply because said battery can be removed. Afraid of losing juice? Just carry an extra battery.

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<![CDATA[Yahoo's top technology news: My CrackBerry is died!]]> Yahoo News has a lot of stories on its tech page. There's a link to the Microsoft-Yahoo "standoff" and a story about Nokia adding Google to its mobile phones, but Yahoo's top-of-the-fold most-important tech story of the day? Yesterday's BlackBerry outage. We wonder if a producer at Yahoo News was still peeved, a day later, that he couldn't see if Elise Vanderhof had emailed him back yet.

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<![CDATA[Service outage strikes BlackBerry users]]> Poor Research in Motion. First the iPhone shows up and makes its BlackBerry look old and busted. Now, it really is old and busted. RIM is experiencing a "disruption of service" affecting all wireless carriers in North America. BlackBerry users could "experience difficulty" using data capabilities like email and web connectivity on their phones. RIM has called the event a "critical severity outage" which started this afternoon and affects enterprise clients and "users of the Americas network." The company has no estimate for when service will be restored. Quick, call a meeting — people will pay attention for lack of anything else to do. (Photo by decaf)

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<![CDATA[iPhone Greedily Eats North American Market Share]]> Canalys has produced a report showing the iPhone has grown massively in North America. The study looked specifically at smartphone market share statistics in Q3, and the iPhone, in a surprisingly short time span, has managed to grab second position. A 27% market share is nothing to scoff at; what Apple has done in a few months, others have failed to do in years.

Smartphones running Symbian, Linux and Palm OS all fall behind Apple's iPhone. This is ever more stunning because the iPhone is only available via one carrier, in contrast, the other platforms can be procured from various cellular networks. This dramatically increases their market penetration. From the perspective of a business model, these figures are simply astronomical. Who's running scared? Apparently, Symbian is:

Every year, Symbian publishes detailed figures demonstrating how they are the biggest, baddest platform in the world. Guess what? This year, they didn't release the detailed figures on their Symbian Fast Facts webpage. Why not? Take a look at the image—the numbers are no longer working in their favor.

All in all, things aren't looking too perky for Apple's competitors. Sure, RIM may be flying high at the moment, but if this growth continues even at a fraction of the rate it is currently, RIM won't be high and dry for long. Android, in you we trust. For a fantastic run through the figures, and a more detailed look at the likely ramifications of Apple's impending dominance, checkout the full report by hitting the link. [Roughly Drafted Magazine]


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<![CDATA[Jon Rubinstein inherits a fistful of fun]]> RubinsteinFormer Apple exec Jon Rubinstein, who ushered in the iMac and iBook, was recruited by Palm in mid-July to help pull the company out from under Apple's Birkenstocks and RIM's wingtips. The flailing smartphone maker certainly needs someone to inject something into its product lineup that is, as CEO Ed Colligan concedes, perceived as stale. (Treo, Treo, Treo!) Too bad it didn't happen sooner. Yesterday it was confirmed Palm will have a wave of layoffs, rumored to be in the hundreds, in the next few weeks. Why?

Because an unspecified product didn't meet with a carrier's approval. Palm blames the misstep for a $30 million hit to this quarter's projected revenues). Rubinstein's influence may take years to find its way into actual phones. No consolation for those without jobs in the short term.

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<![CDATA[Tech bellwethers are dragging the Nasdaq...]]> Tech bellwethers are dragging the Nasdaq composite down. So much for tech's immunity to Wall Street's subprime crisis. The Nasdaq suffered its largest two-day decline in more than five years. Cisco's cautious outlook is blamed as the trigger for the broad selloff. The network equipment manufacturer has fallen more than 12 percent in two days since its announcement. Research In Motion has also fallen more than 12 percent. Apple declined 10 percent. IBM has tumbled nearly 5 percent. And even Google is down nearly 3 percent. Do I hear a bubble starting to hiss air? [WSJ]

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<![CDATA[BlackBerry users happier than you]]> Happiness is a warm BlackBerryA speedy operating system and long-lasting batteries top the reasons BlackBerry business users are more satisfied than working stiffs who lug Treo, Samsung and other smartphone brands. You say you and your iPhone weren't included in this J.D. Power survey of real businesspeople? Exactly.

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<![CDATA[You're late, phonetard]]> Fall backOver the weekend, a large number of so-called smart phones set their clocks back an hour a week too soon, observing the old end of Daylight Saving Time. And you thought you were 55 minutes early today! I used the extra hour last spring to hunt down instructions for the most popular computers and phones. Summary for BlackBerry users: Set your phone to Mountain Time for the next week. To save you more time today, I've preposted the first three comments to this item from software engineers.

  • First post: "Everyone knows the POSIX standard for time_t leaves timezone translation to the application developer. Therefore it is not surprising to me that I missed my Monday status meeting by an hour and have been demoted to desktop support."
  • Second post: "You fail to mention that the BlackBerry can be easily upgraded to handle the new DST rules correctly. Simply download patch 08MAR424.7 from RIM's FTP server. Then, using a #12 Torx wrench and a standard size 000 sprotchel, replace the JPROM chip with an unlocked black-market model readily available on eBay despite the fascists at the FCC. The entire process takes less than three hours."
  • Third: "My iPhone works just fine. Valleywag ignores the Apple community at its own peril."
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<![CDATA[Research In Motion beat Wall Street analysts'...]]> Research In Motion beat Wall Street analysts' expectations, reporting a profit of $287.7 million in the second quarter as revenue rose 108 percent. RIM shipped more than 3 million BlackBerry smartphones. Guess the iPhone release didn't slow them down at all. [Canadian Press]

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<![CDATA[We don't need no stinking iPhone!]]> While the mainstream media and blogosphere remain fixated on the iPhone hype, Research In Motion (RIMM), makers of the addictive Blackberry, is content with measurable success — a 20% stock surge on "unbelievable" first quarter results: 73% earnings growth, substantial subscriber acquisitions, solid expectations going forward, and a 3 for 1 stock split. [Reuters]

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<![CDATA[BlackBerry Outage Update: It's Kinda Up]]> If you're a BlackBerry user, you probably noticed that you haven't been able to contact anyone since last night. Bummer. The good news is, RIM's imagineers have gotten the system online. The bad news is, there's a large backlog of messages from all the "Subject: Test, Body: Test Test Test can you see this" messages you jerkfaces were sending last night.

So expect delays as RIM sends out your messages in batches so the whole system doesn't collapse again. Which means you should probably get on GMail or something else to get your emailing done. Fun.

Exclusive: Massive System Failure Affects Blackberry Users [WNBC]

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<![CDATA[Paris is back on the Black]]> Attention, VCs, engineers, and product managers of the Valley: You are now using the same phone as Paris Hilton.

The little heiress who said "The Sidekick is way better than the BlackBerry" in 2004 is now back on the crackberry. Maybe she needed the bluetooth support to sync her business e-mail; maybe she needed to read Gawker blogs on Mobileplay.

New game: Party like Paris Hilton on cell phones [Yahoo News]
Paris Hilton says: "The Sidekick is way better than the BlackBerry" [Engadget]

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