Apple's iCloud service could spell bad news for RIM, says analyst

Apple is getting ready to officially announce its iCloud streaming music service on Monday but the advent of iTunes users streaming their music instead of downloading music files could spell big trouble for other companies, particularly RIM, at least according to one analyst. AppleInsider reports that today Shaw Wu with Sterne Agee sent a note to clients saying that in his opinion Apple's iCloud service could "change the game" in the wireless phone space.

While other companies such as Microsoft, Google and Amazon (the latter two who already have their own streaming music services) will get hit by the iCloud service, Wu says that it will by RIM, makers of the Blackberry phone, that will be the most affected. RIM has its own "push" service for Blackberry phones and while Apple's service doesn't actually duplicate RIM's feature Wu does say, "... the ability for iCloud to offload data center processing and traffic from carriers is attractive." He adds, " ... And it looks like (Apple) will likely offer some base service for free." As a result, Sterne Agee has decided to downgrade its estimates on RIM's future revenues and stock price.

As we reported on Thursday, news sources are now claiming that Apple now has the support of all four major record labels in the US for the iCloud service but it is still working to make deals with other music publishers. Meanwhile banners are being put in place at the Moscone Center in San Francisco for Monday's start of Apple's Worldwide Developers Conference and they seem to show the symbol for the iCloud service. Not surprisingly, its a image of a cloud.

Report a problem with article
Previous Story

Microsoft gives update on Xbox 360 sales

Next Story

Rumor: Windows 8 video service to be called "Chatter"

22 Comments

Commenting is disabled on this article.

I dont get how iCloud is any worse for RIM than everyone else's cloud drives? Heck, why not include Dropbox, Evernote...

after careful analysis I believe that RIM's new tablet could spell bad news for the firm of Sterne Agee. the new tablet's usb ports will allow the addition of a bull**** filter which would render the alabama company pretty much useless.

ok, now someone give me some $! I R ANALIZING THINGS!

homeboyrocketshoulders said,
Apple does X so Y is going to die. Fill in the variables with completely unrelated things, and voila, you're now an analyst. What a piece of trash article.

Of course but the faulty logic of so-called analysts who have no real world experience has been known for years - regardless of which company they're evaluating. Remember claims by some that Itanium would be a $30 billion market by now? The same folks who claimed Apple would die? The same who said that vertically integrated business model was dead? The same ones that said Microsoft was a take over target? Do what I do and ignore these self appointed experts.

Mr Nom Nom's said,

Of course but the faulty logic of so-called analysts who have no real world experience has been known for years - regardless of which company they're evaluating. Remember claims by some that Itanium would be a $30 billion market by now? The same folks who claimed Apple would die? The same who said that vertically integrated business model was dead? The same ones that said Microsoft was a take over target? Do what I do and ignore these self appointed experts.


Apple will die, eventually.

RIM is already getting hit and will continue to do so but for reasons besides these. This is just...jargon.

The dude is an analyst. He doesn't need to make sense as long as he's justifying his existence by spouting off ridiculous non-sense that generates page hits.

This analyst or the article does not make sense. Sure iCloud is a threat to all its competitor, but this offering, in its present/proposed form, is not comparable to what RIM has.

Can someone help me understand what I'm missing here?

As far as I can tell he's comparing a push email/notification system (hosted by RIM, not the carrier) to a cloud sync service. There's a mention of alleviating traffic from carriers but if traffic doesn't go through the cell network, where does it go?

I've read this and the original article a couple of times now and still don't see his point.

what said,
Can someone help me understand what I'm missing here?

As far as I can tell he's comparing a push email/notification system (hosted by RIM, not the carrier) to a cloud sync service. There's a mention of alleviating traffic from carriers but if traffic doesn't go through the cell network, where does it go?

I've read this and the original article a couple of times now and still don't see his point.


+1... I totally don't get it.

GS:mac

what said,
Can someone help me understand what I'm missing here?

As far as I can tell he's comparing a push email/notification system (hosted by RIM, not the carrier) to a cloud sync service. There's a mention of alleviating traffic from carriers but if traffic doesn't go through the cell network, where does it go?

I've read this and the original article a couple of times now and still don't see his point.

I really don't think there is a point. lol. This comparison makes no sense and how is offering a streaming service going to offload processing power from data centers? Blackberry doesn't have a streaming music service, except for their parties which the iPhone already has and more of. So this service potentially uses significantly more traffic because when people get to work, they will still connect to the works wifi

what said,
Can someone help me understand what I'm missing here?

As far as I can tell he's comparing a push email/notification system (hosted by RIM, not the carrier) to a cloud sync service. There's a mention of alleviating traffic from carriers but if traffic doesn't go through the cell network, where does it go?

I've read this and the original article a couple of times now and still don't see his point.

The only thing I can think is he believes that Apple is getting into the corporate email space with iCloud. Apple is moving fast, but they are no where near taking over corporate email(do they even offer a mail product at the enterprise level?).

schubb2003 said,
The only thing I can think is he believes that Apple is getting into the corporate email space with iCloud. Apple is moving fast, but they are no where near taking over corporate email(do they even offer a mail product at the enterprise level?).

In terms of a windows client? Nope, and I don't see one arriving soon but with that being said the client can interact with the mobileme service already using open standards such as webdav, imap etc. Hence one can keep using outlook without any problems assuming it supports those said technologies.