Is Microsoft Dialing A BlackBerry?

Dennis Faas's picture

Is Microsoft going to buy out BlackBerry manufacturer Research in Motion (RIM)?

This purchase may be beneficial for Microsoft since RIM has been going through a period of strong growth in terms of subscribers and profits. However, RIM does have its downsides, the main one being its customers. So far, retail consumers are very few and far between. On the other hand, the company is striving to gain a broader consumer population by equipping its devices with new multimedia features such as cameras and music players. It has also negotiated with carriers in order to reduce consumer prices.

A takeover could bring a substantial amount of business to Microsoft since BlackBerry has been popular among professionals and government officials since its release. As well, if a takeover did occur, Microsoft's share of the smartphone business would increase, giving the company access to both the hardware and software markets.

Microsoft may also want to buy out RIM in order to employ the strategy it used for the Zune. That plan allowed the company to abandon an attempt to create an industry-wide standard in favour of an integrated design which resembled that of the iPod. (Source:

Or maybe the real reason behind the rumors about Microsoft's possible RIM purchase relates to competition from its rivals, specifically Google. An analyst observing the situation believes that "According to speculation, the software giant might be interested in RIM in response to Google's recent announcement that it is interested in making its own mobile phone operating system, which would compete with Windows Mobile."

It seems Microsoft needs to support its products and buying out the BlackBerry company may just be the way to do so. (Source:

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