Yesterday, Research In Motion Limited
(USA)(NASDAQ:RIM) stock has been
downgraded to Sell from Hold by Canaccord Genuity which has set a price target
of $10 a share for the handset maker saying that the recent share price
appreciation are not justified by its fundamentals.
"Over the past month, RIM shares have markedly
increased ahead of the January 30 launch of long-awaited high-tier BlackBerry
10 smartphones, Canaccord analyst T. Michael Walkley said.
"While initial sales of higher-ASP BlackBerry 10
smartphones should improve RIM's January and May quarter device sales and ASP
mix, our checks and analysis of the global competitive landscape suggest a very
low probability BlackBerry 10 sales can turn around RIM's long-term business
trends," he added.
He noted that corporate customers, who bring in higher
revenues per user, were dumping Blackberries in favour of iPhones or even
Androids. The shift to BYOD is also lowering revenue from its enterprise
customers while lower-priced Android smartphones in emerging markets were
threatening the company's global sales and subscriber base.
But the thing is nobody really knows what to make of
RIM.
While Walkley is taking a pessimistic view of the
company, at the other end is Wes Worsfold who firmly believes in its resurrection
story.
The president of Motek Mobile and the coordinator of
the local BlackBerry Developer Group, Worsfold is among those people who are
focusing less attention on the ups and downs of RIM's stock but on creating the
kinds of consumer apps and games that will make people want to buy the
next-generation BB10-based devices, a report in Yahoo Finance said.
"Developing apps for RIM is streamlined," he
says. "There are lots of development options and help and support is
always available from the RIM dev relations team. We can submit apps for BB10
in AppsWorld today."
Windows phone, with all it's advertsting and slick interface, is having a difficult time getting traction. BB will have even a tougher time. It's over for RIMM.
ReplyDeletenope it does not have to be over for Rim, if they would only be bold and take so advice from one of their playbook users. i see they are looking for apps,but did not yet get down from their not so high horse,and ask for help. makes me believe they are not interested in surpassing the innovation and creativity of apple and android driven devices. but really why should the exec's really care. if company closes the only ones that will really suffer is the workers, notice how basille and lazaridis(former co ceo) step down but yet collected 7,000,000 each? and as for thorstein(present ceo)wether he tries or not to save the company he also gets to walk with very big payout hmmmm nice retirement package if you ask me, and who is the one that pays its the investors. i have offered countless times to"under contract" come int to their establishment to correct what is ailing the company but still yet to receive an invite. i have found hundreds of mistakes in their OS and design flaws int their handhelds and tablet. If and when they advertise that they have acqiure the Freelance Eng that has a completely alternate approch to smartphone and tablet technology,it is then when stock will rise dramatically and continue when it is learned that next generation smartphone technology has arrived. What is the matter with them, are they not in the position yet when trying anything is better then the money they are presently losing???
DeleteThis is a turnaround and presence which will have qualified returns on investment one, increased revenues on the books,two.RIM will not stop here, the traction will create overperform results, thats where optimism and positive setiment will take us.My price target 23 dollars by the second quarter results.Yes there are many challenges but the company has and is taking the right initiative.Time will tell, see yahs in a few months.The harder they work the better the results will be be, so far I satisfied.
DeleteDedicated Blackberry user along with Millions.
^put your money where your mouth is and short it then.
ReplyDeletewhat do you mean “put your money where your mouth is” i don’t plan on buying Rim stock. from what i saw of Rim they are just copying what is already present in the market place, there is no more people to buy. Rim has presented the feature of not having to use the on button on there tablet “swipe screen to wake tablet out of sleepmode” well i hate it,"why you may ask” on several occasions i have found my playbook out of sleepmode and a few attempts tried in password feature, while in my pocket, so i would rather push the button on the tablet to wake it up. another reason why i hate it is, i don’t like the idea of having touchscreen interface on all the time in sleepmode, i dont mean lit up but on to accommodate the swipe feature, that sucks power. let me tell you a story. i put my playbook in my coat pocket the night before, fully charged but in sleepmode. the next morning it was already just over 10% drained and i think its because of touchscreen in active mode. so now i read my book on my playbook for a hour at the coffee shop,but mind you i was linked to Tim Hortons wifi. so now i am home and have not touched my playbook since then and now its at 62% power"at 3:00 this afternoon” mind you wifi is still on but was is sleepmode, no wonder they dont sell very good. So rim lets work together and make Apple and android driven products look like they came from the stone age. i wish to keep candians working. Freelance Eng.(designer of smartphone tech)
ReplyDeleteNo offense Mr.Engineer, but if you leave a device in "Sleep Mode" it drains the battery. As does my wonderful Macbook Pro. I guess even Crapple has the same problem! Duh! Whata ya know?
ReplyDeleteHe also said put your money where you mouth is about "shorting the stock." It was a sarcastic comment.
And who the hell said you have to be in sleep mode all the time? Turn off your device if you don't like the convenience of having it On and Ready to go at a simple gesture away. Your points/argument is flawed.
That's my "story" lol
i know that sleep mode drains the battery,but why have touch interface active? at least OS should have option of either use swipe feature or on button to bring out of sleep. im sick and tired of seeing my screen on when i did not do the swipe thing. and by the way i was at there presentation in orlando and they did give some hints of what is coming,and well apple already does the things the presented. i have nothing against Rim i would like to see them florish,and would love to be able to help them remedy their demise. anyways have a good day Illmatie and chill dude Freelance eng.
DeleteBeauty of the mobile device market is that devices are subsidised by mobile carriers, giving consumers the option to replace every 12-18 months. What other industry allows people to replace a $800 device every 18m for what they perceive as 'free'? Therefore, refresh rates are high and lagging suppliers have multiple lives. BB10 may not save RIM, but thanks to funding model of the industry, it has a better chance of doing so than the stock price suggests. = BUY.
ReplyDelete