Global Sources
EE Times-India
Stay in touch with EE Times India
 
EE Times-India > Optoelectronics/Displays
 
 
Optoelectronics/Displays  

RIM fears shrinking market share

Posted: 04 May 2011     Print Version  Bookmark and Share

Keywords:BlackBerry sales  Research in Motion stock rating  RIM international sales  RIM product introductions 

On April 28, RIM said it expects sales of its BlackBerry smartphones "to be at the lower end of the range of 13.5-14.5 million [1.35-1.45 crore] forecasted in March and a shift in the expected mix of devices shipped towards handsets with lower average selling prices. This mix shift is also expected to result in revenue that is slightly below the range of $5.2-5.6 billion [Rs.23,744.29 crore-Rs.25,570.78 crore] guided on March 24," the company said in a statement.

Following Research in Motion's pre-announcement of lower revenues for its current quarter, a financial analyst reduced his rating on the company and predicted that it would see its smartphone market share shrink during a forthcoming risky period.

In a conference call, RIM executives pointed to slower than expected sales of handsets in Latin America. "We are downgrading the stock to neutral due to concerns that the international growth story is slowing and delayed product launches are creating a deeper hole for RIM to emerge from in the future," said Stephen Patel, an analyst with Gleacher & Co. in a research note.

Patel said the downturn in Latin America will depress overall international sales for RIM which were up 94 per cent annually, helping the company balance sales that were down 9 per cent annually in the U.S. In addition, RIM has delayed some new product introductions as much as two months, he added.

"We estimate that a quarter to a third of Blackberry subscribers in the U.S. who came up for contract renewals last quarter switched to other platforms, leading to an estimated net ~1 million [10 lakh] subscriber losses in the U.S.," wrote Patel.

In its current situation, RIM will not be as likely as other competitors to gain share in Europe due to Nokia's current downturn and shift from its Symbian OS to Windows, he added.

"New products look compelling from a hardware perspective and also include substantial OS upgrades, but we do not think RIM can address its ecosystem shortcomings in applications as easily," wrote Patel.

RIM is falling behind the Apple iPhone and Android handsets in offering a broad set of third-party apps, he said. In addition, the Blackberry Playbook, panned by some reviewers for its lack of native email and Android app support, is expected to have a lower profit margin than the company's smartphones.

- Rick Merritt
  EE Times





Comment on "RIM fears shrinking market share"
Comments:  
*  You can enter [0] more charecters.
*Verify code:
 
 
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

 

Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

 
Back to Top