Will RIM Die or Thrive in 2013?

Updated

In the video below, Fool tech and telecom analyst Eric Bleeker discusses the prospects for handset maker Research In Motion in 2013.

The rapid pace of technological innovation can cut both ways for companies involved. A onetime industry leader in mobile, RIM now finds itself struggling. All hope may not be lost, but no company operating in mobile has ever recovered from running negative operating profits, Eric says.

One key concern for RIM is its collection of fees for services like BlackBerry Messenger. The company collects about $5 per handset in these fees, and they are making up an increasingly large percentage of its revenues. It now makes up some 35% of sales.


But with the new BB10 operating system, these fees become variable. That's potentially game-changing. It means many of its users may not have to pay these fees at all. That's reason for concern for Eric, who says he'd either avoid RIM altogether or even consider shorting the stock.

While RIMM has fallen behind in the mobile market, Apple, a longtime pick of Motley Fool superinvestor David Gardner, has soared 219.2% since he recommended it in January of 2008. David specializes in identifying game-changing companies like this long before others are keen to their disruptive potential. He helps like-minded investors profit while Wall Street catches up. I invite you to learn more about how he picks his winners with a free, personal tour of his flagship service: Supernova. Inside you'll discover the science behind his market-trouncing returns. Just click here now for instant access.

The article Will RIM Die or Thrive in 2013? originally appeared on Fool.com.

Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Google. Motley Fool newsletter services recommend Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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