Blog Post

The Good, The Bad (RIM), The Ugly (Palm)

Sure everyone was obsessing about the whole Google VoIP thing, but we missed some of the big stuff that happened today in the handheld space. For starters, PalmOne CEO Todd Bradley, hightailed it out of the handheld and Treo maker. President Ed Colligan is taking over, for now. The news came after the market close, and the stock promptly sank about 12% in the after hours trading. This is the second major executive departure from PalmOne in less than two weeks. Could this be the beginning of the end? Interesting aside, the guys from Handspring, who were supposedly bought out by PalmOne are now in firm control of the company. But will that save Palm? has a fairly indepth piece on all this, which bring me back to my original thinking… tic toc… Talking about Palm, here is news on another Kleiner Perkins company, Good Technology. (Actually KP backed HandSpring which is now PalmOne)

In other handheld news, a very smart reader, sent me a link to a big story in Wall Street Journal on Good Technology. Apparently, Good upgraded its software which can now do seemingly cool stuff like deliver apps from and Oracle. This and negative mutterings from influential newsletter writer Fred Hickey pummeled Research in Motion. RIM is off 20% year to date so far. Anyway Good’s PR move does make you wonder if anyone is really paying any attention to what’s going, or has everyone reacquired the buy-sell trigger. Good’s new stuff is not all the new because RIM does some of thee things. The guy who sent me the link pointed out:

Plus looking at the numbers, it’s hilarious that Good poses a serious threat to RIMM — NOW or is seriously likely to given RIMM’s incumbent position with carriers globally. Good has 4,000 “customers.” If each customer has 10 users on average, it has 40,000 users paying $330/year (that includes the server, upgrades, maintainence etc). You’re looking at $13.2 million in revenues for 2005. Let’s be generous and say they have 100 users on average (which is in my view absurd), You’re still only looking at $132 mln. These guys want to go public.”

1999 anyone? Actually RIMM is expected to do $2 billion in sales in 2005, and $2.8 billion in 2006, with analysts estimating about over five million subscribers by the end of ‘05. Just putting things in a little perspective