$80 bil to $5bil... Painful (ouch!)

Source: Yahoo Finance

They pioneered the smartphone market. They made it ubiquitous. They nearly ruled it for a decade. They made people addicted to the phones. They sustained the barriers to entry for competitors for years... And as per ECON 101, barriers were supposed to be broken. Players were supposed to enter... They felt possible long-term threat. But they didn't innovate. They saw their market share shrinking slowly. But they didn't innovate. They saw continuous decline in market share and customer base. They thought about innovation. They considered their R&D lightly. They suffered. They launched something exceptional. And they realized it was too late. They, the pioneer of the booming smartphone market, started considering strategic alternatives yesterday. Who are they? They are Research in Motion, Waterloo, ON, Canada based company, who pioneered BlackBerry, aka Crackberry (This name has nothing to do with their demise, but it was given when BlackBerry was the only smartphone option).

When I was young, I always wanted to own BlackBerry. And that's why I had BlackBerry as my first smartphone in mid 2009. Since then, I have had BlackBerry only. Currently, I am using BlackBerry Z10, runs on BB's new OS, BB10. I neither own any BBRY stock nor sit on their Board. I just want to writ what I feel. These should be enough disclosures for any conflict of interests!

BB 10, is by far the best RIMM has developed. I will not use word "innovate", because it may attract some critics. Apple's iPhones and Google's Android devices have become so "generic" these days, which is the prime factor for BBRY's dwindling customer base. The way BB 10 works, consider fast & smooth, if it was launched 2 years ago, the results could have been different. Only, the only, problem it has, is lack of apps. They have lost developers' interests as well along with customers. Recently, they announced to offer BBM, their premier messaging service, to other platforms. I am not really sure how useful it can be. But one thing I am absolutely sure about is BB 10 is all they can offer. There is nothing beyond that.

I have no vision for their future. They may be out of the business in 2015 when I will be hunting for a new phone. There is a huge possibility that I will not be able to get BBRY phone in the market in 2015. But I strongly believe that I will have good solid time with current Z 10 I have until 2015.

From one corner of my heart, I thank Apple and Google for bringing smartphone market to this level in such a short span. And that is the premier reason why BlackBerry developed their best product. And I could get a chance to use that!

As I heard and expected, Apple has delivered finally...

$40, $50, $60, $70, $80, $90, $100 billion and counting. This is how the world's most valuable company has increased its cash over the last 3 years. Whenever companies sit on huge cash piles, there are always 2 possibilities. First, companies become conservative, especially post-recession years, in capital investments and hiring, and reports plethora of cash to combat another economic stress. Second, companies face controversial times from the investors. We strongly believe that Apple falls in to second choice.

When do companies pay dividends and when do they repurchase shares? Simple answers and simple signals. When a company believes that there are no more opportunities to invest money, acquire assets or there is a shrinking room for current above average growth, they pay dividends to reward investors. And when a company believes that their equity is undervalued, they repurchase some shares in the market. I have not performed any equity fundamentals on $AAPL and this is why I cannot say if its equity market value is undervalued or overvalued. But I can somehow convince myself that there is some decrease in growth is forecast by the management after a dream post-recession run and paying dividends is the best way to keep investors tagged along.

As I heard and expected over the last few months, Apple has finally announced to pay dividends and $10 billion worth of share repurchase today. Though its dividend yield is less than its peers, it is going to be interesting new chapter for Apple, being considered mature in the market.