Research in Motion (NASDAQ:RIMM) is clearly not as important to Google (NASDAQ:GOOG) as it was 5 years ago. With the former facing intense competition from other smartphone players, the withdrawal of Blackberry’s Gmail app almost seems like a snub from Google. The move is not that surprising given that Android itself is the biggest contender in the mobile smartphone space.
See our full analysis for Google’s stock
RIMM 2011 is Nowhere Close to RIMM 2006
RIMM has largely downplayed this development by stating that it already provides native support for Gmail in Blackberry, which does not need a separate Gmail app. However, the news itself is a sign of Google’s steep ascent in the smartphone business. RIMM’s share in the U.S. smartphone market has reduced to less than 12% from almost 50% since the last 5 years, [1] and clearly the erstwhile leader is not enjoying the same importance anymore.
Additionally, Google’s focus at the moment seems to be singularly directed towards Apple (NASDAQ:AAPL), with the 2 companies locked in bitter patent disputes at present. Further development for a Blackberry Gmail app would have been a distraction at best, as Google plans on providing an even better Gmail experience on Android-based phones.
We currently have a price estimate near $628 for Google’s stock, which is around 5% above the current market price.
Understand How a Company’s Products Impact its Stock Price at Trefis
Notes:
