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WHY I STILL HAVE A BLACKBERRY

In Uncategorized on September 27, 2012 at 1:48 pm

Markets await RIM results
I love my BlackBerry Bold, but I’d be oh, so tempted to at least look at the iPhone if I had to pay for the thing myself.

And therein lie some of RIM’s troubles.

I have a BlackBerry through The Globe and Mail – Note to bosses: I really appreciate it and I’m not asking for a new iPhone 5 – but some companies aren’t wedded to Research In Motion Ltd. any longer. And not everyone’s a journalist who needs a tiny keyboard.

A wounded RIM is expected today to report another brutal quarter, though it buoyed some optimism earlier this week, sending its shares higher, when it disclosed that its subscriber base has climbed to 80 million and reiterated that its new BlackBerry smartphones, BB10, were still on track for early next year.

RIM shares have collapsed amid disappointing results and loss of market share to the likes of Apple Inc.’s iPhone and the Google Inc. Android system.

Analysts expect RIM to post a drop in revenue to about $2.5-billion (U.S.), and a loss in adjusted earnings per share of 47 cents, when it reports second-quarter results after markets close today.

And while the fatter subscriber base, up from 78 million at last report, is certainly good news, there are questions surrounding the “quality” of the increase.

Many new subscribers would be in the emerging markets, where RIM sells cheaper devices, said Raymond James analyst Steven Li.

“With an aging BB7 portfolio and intensifying competition at the lower end of the market, we believe RIM’s fundamentals likely continued to deteriorate in 2Q,” Mr. Li said in his projections for today’s results.

Analyst Todd Coupland of CIBC World Markets said he expects the “typical seasonal increase” to be tempered by people delaying a new BlackBerry until BB10 models are available.

“We believe the share price will continue to stagnate in the mid- to upper single digits until after the BB10 launch,” he said in a research note. “… We believe the risk is too high for investors until BB10’s popularity worldwide is better understood.”

Michael Babad, The Globe and Mail

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