Samsung Licenses RIM Technology

RIM makes another big licensing agreement with Samsung wherein Samsung wireless devices will use the Blackberry connectivity solution for e-mail and other PIM services. RIM struck a similar deal with SonyEricsson in December, as it shifts its business towards more licensing deals and de-emphasizes its dependence on hardware revenues. This is a wise move, as the hardware business usually moves towards commoditization, while the software side, RIM is in a good position to become the dominant standard for mobile, real-time, enterprise e-mail connectivity. This is exactly the strategy that we thought RIM was taking a year and a half ago, though it seems to have taken a little while for it to come together. Lately, sales, profits, and stock prices have all been up at RIM, indicating the market is responding to the strategy. (Meanwhile, lurking in the wings remains NTP, with their frivilous lawsuit against RIM.)

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