Lenovo Could Take Over RIM 114
judgecorp writes "China's Lenovo could take over RIM, according to Lenovo chief financial officer Wong Mai Ming, speaking at the World Economic Forum in Davos Switzerland. The Canadian authorities might object, and so might BlackBerry users, after what ultimately happened to the ThinkPad brand under Lenovo's guidance. Canadian Finance Minister Jim Flaherty said, 'It’s something that we would look carefully at. We always look at foreign investment in Canada as a cause for reflection. We have to look at intelligence concerns.'"
What happened? (Score:4, Insightful)
You mean, they would object if RIM devices kept working as before?
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I was wondering that as well.
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The question in my mind is why lenovo would want to acquire RIM at all. It's like adopting the mangiest, sickliest animal at the shelter.
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Uh, China + secure (other) government email = large subsidy from China govt.
Re:What happened? (Score:4, Interesting)
The question in my mind is why lenovo would want to acquire RIM at all
"Traditional" computing platform sales continue to flatline (Notebooks / Desktops). Lenovo's attempts at a tablet have, to date, flopped. RIM is currently undervalued and still sells millions of handsets. It's a quick jumpstart into the mobile business for Lenovo.
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By "flatline", do you mean that no one buys these items anymore?
Or, by "flatline", do you mean that the market is no longer growing?
See, "flatline" is a medical term, to me, implying someone is dead, dead, dead. Obviously, laptop and desktops aren't "dead, dead, dead" because millions of us use them. Newegg and other retailers still offer and sell them.
Using the term to describe markets that no longer enjoy astronomical growth is misleading at best, and probably dishonest.
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Flatline is used commonly in business speak to refer to a market that no longer sees growth. It isn't misleading, you're just using a different context.
However, the connotation you've brought from the medical field is purposely intended. Under the current Commandments of United States Capitalism, failure to grow over last year is a precursor to a long drawn out death spiral that will cost investors a lot. Whether this should be the way of things or not, is beyond the scope of whether or not this term i
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I think the death spiral is due to the fact that fewer and fewer people buy these items each year, items which were sold on razor-thin margins anyway.
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Maybe flat but not flatlining. That's RIM. Some facts.
Lenovo’s market share is growing in the beige box market.
The market for beige boxes is flat - i.e. with little to low growth. Partly due to market saturation in the developing market, partly because the emerging market is jumping straight to tables & smartphones.
The market for beige boxes is a commodity market. Sure, there is some difference – particularly in the lap top side, but not much. Mainly it about competing by being more efficien
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The question in my mind is why lenovo would want to acquire RIM at all. It's like adopting the mangiest, sickliest animal at the shelter.
Patents?
Re:What happened? (Score:5, Informative)
Yeah, I'm a bit curious about this too. I've had two Thinkpads since the purchase and both have been as good of quality as when it was IBM.
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There were a lot of lemon thinkpads in IBM's history. The iSeries was spectacularly crappy. The 570 was flimsy, the 760 line would burn your legs if you used it as a laptop. The crap coming out of Lenovo these days isn't much worse than the worst of IBM's history, so I'm still reserving judgement.
Thinkpads were never a sure thing. You had to know that the line was good before you bought.
Before Lenovo though, the thinkpad X and T models were a rare run of excellence. After Lenovo, they were merely o
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The ThinkPad T30 also had the "burn your legs if you put it on your lap" issue. The Pentium 4 M processor in that thing ran really hot, and sucked down a fully charged battery in under 90 minutes under load.
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That's because they were fully outsourced by IBM to Lenovo. The only thing that changed was the label. The Canadian Finance Minister needs to think before he speaks, or at least have staff people who can think for him.
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Yeah... I was under the impression that Lenovo was doing very well. I personally feel that they made some of the best quality devices...even if they happen to be a little more on the "utilitarian" and "ugly" side of things.
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Let's see... chiclet keyboard, move to 6-row keyboard layout (no more grouped F-keys, no Del/Home/End/PgUp/PgDn grouping), and this abomination (coming soon!):
http://forums.lenovo.com/t5/T400-T500-and-newer-T-series/ThinkPad-T431s-User-Guide-amp-Pictures/m-p/993279/highlight/true#M73300 [lenovo.com]
Non-removable battery, trackpoint buttons nixed (they're now integrated in the top of the trackpad), an even bigger trackpad (aka space-waster)...
Two more generations and we'll be looking at black MacBook clones.
Ummm, it's an ultrabook. How many ultrabooks have removable batteries? As for the bigger trackpad, well, they could have used a smaller screen, which would have allowed a smaller case or used this screen with a lot of plastic around the trackpad instead. I do agree, though, I don't like trackpad buttons at the top of the trackpad instead of the bottom (where my thumb can hit them). However, if using the trackpoint, having them at the top of the trackpad works out pretty well.
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Does it really matter that it's an Ultrabook? Call it whatever you want, it's still a T Series Thinkpad... :(
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Yes it matters. An iPad isn't a Powerbook and an ultrabook isn't a full laptop either. All of those devices are designed for different needs and using the wrong one based on one's need is sure to be frustrating.
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Yeah, I have a collection of ThinkPad laptops that date back to the early 90's and their overall look has not changed very much, but they're damn solid machines. Even the oldest one can still run its OS. If it ain't broke, don't break it.
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While Thinkpads have essentially stayed the same (some would disagree, but I still find them to be of good quality), the services associated with the purchase, such as support and warranty, have become way worse than they used to be.
This was to be expected though.
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With what remains of the laptop computer market, we probably won't see decent customer service again. Prices and costs are cut to the bone because it's an industry that is in its final years. There's no incentive to premium-price becuase that market is so small. Cheap componentry and minimal support are the new normal in this industry. If you want more, the answer regrettably is probably Apple.
Re:What happened? (Score:4, Informative)
I work at an ASP for Lenovo, and if you're talking about their 'Think' branded stuff... the part fulfillment is still handled by IBM. The same ASPs are providing support. There are the same if not more warranty options as before. Perhaps you are talking about call centers? I've talked to them and they don't seem any worse or better than any other big brand OEM call center. Not sure how anything is 'way worse' - sounds like your perspective.
I expected things to get worse, and was somewhat surprised when they didn't.
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and they don't seem any worse or better than any other big brand OEM call center.
This is not the yardstick of customer support. IBM Thinkpad support used to be miles ahead of everyone else.
In general, the customer support in the PC industry is stupendously bad. Now Lenovo's support is also horrible.
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Try a T530, with the 6-row tictac keyboard... and then look here:
http://forums.lenovo.com/t5/T400-T500-and-newer-T-series/ThinkPad-T431s-User-Guide-amp-Pictures/m-p/993279/highlight/true#M73300 [lenovo.com]
THAT is where Lenovo is taking Thinkpads.
As a fellow T520i user (btw, swap out the display for the 1080p one... it's AWESOME!), let me be the first to say: We're fucked!
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The typing feel really is pretty decent, I like it too - but the layout is pretty atrocious :(
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It's not like RIM is doing a sterling job with the Blackberry brand anyway. Their new OS has been coming along for how long now?
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And its basically ready, gold, good to go, with the public launch this coming Wednesday.
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Unlike IBM and thinkpad, where the company wasn't in any risk of bankruptcy, it was just not part of the new strategic plan, RIM is a whole other ballgame. They could well be completely bankrupt and liquidated in a couple of years and if someone is dumb enough to pay billions for it we (as in canada) should probably happily take their money. A change in direction might save the company, and failing that billions of dollars is better than not billions of dollars.
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You must not have heard the latest news... Lenovo is nixing the trackpoint buttons in favor of a bigger touchpad (seriously!):
http://forums.lenovo.com/t5/T400-T500-and-newer-T-series/ThinkPad-T431s-User-Guide-amp-Pictures/m-p/993279/highlight/true#M73300 [lenovo.com]
I'm typing this from a (freakin awesome!) Thinkpad right now, but if these changes are implemented into the main T/X/W series lines, I'm gonna be typing from a MacBook Pro pretty soon...
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So if they remove the trackpoint buttons, then you'll switch to a laptop that also does not have trackpoint buttons?
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Yes, if only out of spite.
If I don't have a working trackpoint, I might as well get a retina display in exchange...
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This, my dear kids, is called FUD.
Unfortunate Name (Score:2)
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Let's see, might China have an incentive to make some changes so they could listen in on all communications with BlackBerry phones in use by the US government?
Gosh, I suppose the might.
As BlackBerry is the only certified secure phone presently, having the company in the hands of a pretty much hostile trading partner might just be a bad idea for both US and Canada.
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If security depends on who owns the company (rather than baked into the device and supporting equipment), then it wasn't secure in the first place.
You can't trust anybody.
thinkpad (Score:1)
So what is alleged here that happened to the ThinkPad brand under Lenovo?
It seems to me ThinkPads continue to be solid laptops under Lenovo, as they were under IBM.
Nothing wrong with ThinkPads (Score:1)
While there's been some backsliding on customer service -- IBM set an unequalled standard in this area -- the ThinkPads are still at the top of the class in the PC space. Since moving to Linux I've run only ThinkPads, which are solid and (except for their new ultrabook) easily user-upgradable. Even the help, when I've needed it, has been fine. The customer service issue I had was a very late delivery with poor communications from Lenovo while I was waiting for my most recent model (T430s).
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How do you define "easily user-upgradable"? Of the major notebook brands, only HP joins them in BIOS locking their mini PCIE slot so that third party wireless cards cause the machine not to boot. That's hardly customer friendly.
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Goddamnit, I feel like an idiot posting this 10 times, but everyone keeps saying Thinkpads are fine... they're not:
http://forums.lenovo.com/t5/T400-T500-and-newer-T-series/ThinkPad-T431s-User-Guide-amp-Pictures/m-p/993279/highlight/true#M73300 [lenovo.com]
I for one am freakin terrified (I love my Thinkpads)...
This would probably kill all US Federal contracts (Score:4, Insightful)
After examining how the United States treats Huawei networking gear, I'm sure this would kill all the US (and State/Local) government contracts with RIM.
US Government contracts are one of the few highlights of RIM's business right now.
Re:This would probably kill all US Federal contrac (Score:5, Interesting)
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I know RIM will give the government its encryption keys at the drop of a hat, but I figure Apple'd do the same too. Unless Apple was actually refusing to not give it to the U.S. government at the drop of a hat.
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If you have your own BES, RIM absolutely does not have your encryption keys, and therefore cannot hand them over to anyone. In that situation RIM can't read your email, period.
Spoiler: I work for RIM.
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Huawei is an opaque company. We are not sure who owns. We know there is a relationship with the Chinese military but we are not sure exactly what it is.
Lenovo, on the other hand, operators much more like a standard international company that just happens to be located in China. It has offices, engineers and factors in the US. I would assume a good chunk of RIMs offices would remain in Canada.
In short, it would be easier to establish that security was being done right with Lenovo then Huawei. I have concerns
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Maybe, but the US State Department banned Lenovo computers from being used for Classified work back in 2006.
http://www.engadget.com/2006/05/19/state-dpartment-bans-lenovo-pcs-from-classified-work/ [engadget.com]
No... you don't do that !!! (Score:1)
Encrypted communications? (Score:1)
The Blackberry devices have been a favorite among lawyers and government workers for a long time because they were inherently more secure than similar portable email/telephony devices. Considering the Chinese government's position on encrypted devices and communications I seriously doubt the Blackberry as we know it would continue to exist. And even if it did...would you trust it?
Blackberry & Thinkpad? (Score:5, Funny)
Does China have some sort of late-1990s nostalgia thing going on that I haven't heard of?
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Companies with a lot of solid technology that aren't particularly trendy taking a big slump in the market and thus can be had for a fairly cheap? Sure. The value at Wall Street is pretty well measuring customer appeal, but China isn't interested in buying customers they're interested in buying technology which makes their valuation quite different.
concerns (Score:1)
I think what concerns the educated public the most is RIM's lack of intelligence
Just because an industry is based on your home turf is no excuse to allow embarrassing performance to continue to drag itself out. If Lenovo thinks they can "fix" RIM, I say let them try. They can't really do much worse at this point. Any business that's not totally dominate by a PHB should have by now at least started diversifying critical resources away from reliance on RIM.
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I think what concerns the educated public the most is RIM's lack of intelligence
Awww, you beat me to it!
Any business that's not totally dominate by a PHB should have by now at least started diversifying critical resources away from reliance on RIM.
Sadly true. And even more sadly...BB is the only device authorized for 'business' use for many companies in Canada. Is it because of too many PHB's, or too much IT inertia? I'm not sure. All I hear when I ask is that 'BB is the only secure platform', and they simply don't trust anyone else. That may have been true 10, or even 5 years ago, but now?
Anyhow, *picks up the popcorn*, let's sit back and enjoy the show! :)
I have a lenovo thinkpad... (Score:4, Informative)
I don't really see the difference between IBM thinkpad and Lenovo thinkpad as being significant.
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T430 (Score:5, Informative)
So what happened to Thinkpads after Lenovo purchased it?
I have a Lenovo Thinkpad T430. I find it to be a very good laptop.
I have only 1 problem with it.
There are tons of programs it comes preinstalled with
- Evernote
- Intel AppUp(SM) center
- Intel WiDi
- Intel Control Center
- Intel Management Engine Components
- Intel OpenCL SDK
- ThinkVantage Communication Utlity
and lot more stuff. But I think lot of extra software shipped even when this was from IBM.
If someone could publish a list of stuff which could be uninstalled, it would be great.
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If someone could publish a list of stuff which could be uninstalled, it would be great.
I'm guessing:
- Evernote
- Intel AppUp(SM) center
- Intel WiDi
- Intel Control Center
- Intel Management Engine Components
- Intel OpenCL SDK
- ThinkVantage Communication Utlity
We just rolled out 190 of the L series and started with a clean image; the only thing Lenovo support were keen to see put back was the battery saver tool.
More love for Lenevo here, never had such a positive response to a laptop roll out!
Stuff that can be uninstalled. (Score:2)
I just cleaned up a new Gateway laptop. The amount of pre-installed stuff I wasn't interested in is comparable to what was on a ThinkPad I setup last week. From the Gateway, I removed:
Adobe Air
Bing Bar
E-Bay Worldwide
Evernote
Foozkids
Foozkids Platform
Gateway Games
Gateway MyBackup
Gateway Registration
Gateway Recovery Management
Gateway ScreenSaver
Gateway Updater
Identity Card
Kobo
Microsoft Silverlight
Microsoft SQL Server 2005 Compact Edition
Nero DiscSpeed 10
Nero SmartStart 10
Nero Update
Norton I
Another desperate attempt to sink RIM? (Score:1)
I don't think RIM needs to be rescued and as you can see, RIM have no comment on this "news". It is probably another attempt orchestrated by Apple, Google, and the gang to sink RIM. Obviously, if RIM is to become a Chinese company then the US should consider staying away RIM devices and services due to potential national security issues. Just FUD, is what it is.
Since when? (Score:3)
Burn (Score:2)
"The Canadian authorities might object,"? (Score:1)
Jim Flaherty ..... Intelligence Concerns (Score:2)
Hmmmm.....intelligence concerns......
The party that sells out citizens info to foreign powers at every turn,
or worse loses everyones data on a portable hard disk, or just looks the other way
while personal information is bled and leaked from government databases by
public employees (ex, bored, or otherwise).
I think I'll just move to China. It's safer.
The Chinese govt owning all that security (Score:2)
I can hear thousands of corporate and government accounts bailing when China and by definition the Chinese government and army get their hand on all the secure data and transmissions that RIM has. BB's are in fact the only handset allowed in many US Federal agencies because of the security. Not anymore.
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Other possible suitors: (Score:1)
Re:Taking over RIM is not making any difference (Score:4, Interesting)
You are incorrect. RIM has positive cash flow, no debt, and significant capital assets and cash. RIM is far from dead and with their new offerings have continued opportunity to grow.
Another thing to consider - RIM is still has the only FIPS compliant smart phone on the market. That means that any government agency that needs to send "secret" data to remote agents will almost certainly use this device set.
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Not if Lenovo buys it.
[John]
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You are incorrect. RIM has positive cash flow, no debt, and significant capital assets and cash. RIM is far from dead and with their new offerings have continued opportunity to grow
I think your key word here is “opportunity”, because right now they are in a tail spin.
All of the keys stats you quote are declining in the past 2 years. They are selling fewer phones at a lower cost. Yes, they have secure phones. They could survive as a small niche player selling only to a select few – until somebody else decides to make one. Remember when Apple had 5% market share vs. WinTel? It struggled financially.
It doesn’t mean they can’t turn it around – but I ca
Too little cash and unattractive products (Score:5, Insightful)
RIM has positive cash flow, no debt, and significant capital assets and cash
RIM has had an operating loss for the last 4 straight quarters [google.com]. While you are correct that the company isn't on financial life support (yet), their prospects are not looking especially cheery. Their cash hoard is around $3 billion which while substantial is tiny compared to Google, Apple, Microsoft and Samsung. All their major competitors have extremely strong balance sheets, far stronger than RIM. It's a bit like playing poker when everyone at the table has a much larger pile of chips. You still can win but the odds are not in your favor.
RIM is far from dead and with their new offerings have continued opportunity to grow.
The sales numbers for RIM's products are do not back you up. Competing products from Apple and Android makers are in far higher demand. RIM's product line is pretty widely considered to be not competitive. While RIM might succeed yet with some brilliant new products, there is little evidence so far that we should expect anything that will put them ahead of the curve.
Another thing to consider - RIM is still has the only FIPS compliant smart phone on the market.
Which is something that the majority of the market could not care less about. At best it gives them some breathing room for a little while. But the number of people who really need that level of security is a pretty small fraction of the overall market. RIM needs a product offering with much broader appeal and significant advantages over the competition. Right now this is a battle they are losing and losing badly.
Re:Taking over RIM is not making any difference (Score:5, Insightful)
The way I understand it is that while RIM is struggling in North America, they're still pretty dominant in the rest of the world. And the rest of the world is still a pretty big market.
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The way I understand it is that while RIM is struggling in North America, they're still pretty dominant in the rest of the world. And the rest of the world is still a pretty big market.
I think you need to look at real numbers instead of antedotes... RIM is struggling nearly everywhere...
http://graphics8.nytimes.com/packages/pdf/technology/20121128_RIM.pdf
Here's a smattering of numbers for new phone sales (for Oct 2011 -> Oct 2012) those that don't want to read the link....
USA: 8.5% -> 1.6% (expected)
UK: 19% -> 7.9%
France: 16% -> 7%
Spain: 23.7% -> 3.4%
Brazil: 8.7% -> 2.7%
Only in germany they increased share from 1.6% to 2.5%
Even if their installed base is large (which it