logo
  Join        Login             Stock Quote

RIM Unveils Blackberry 10 Prototype, But Investor Skepticism Remains High

 May 03, 2012 09:55 AM
 


(By Mani) Research in Motion (NASDAQ: RIMM) (TSX:RIM) unveiled its prototype BlackBerry 10 (BB10) device at its annual user conference in Orlando. However, investors remained skeptical as shares dropped 6 percent and 5 percent on the first two days of the conference on May 1 and May 2, respectively. The conference ends on May 3.

The prototype device with 4.2-inch screen and 1280x768 touchscreen sans QWERTY keyboard resembles a smaller version of the PlayBook and appears similar to many of the available Android touchscreen devices.

CEO Thorsten Heins appeared confident that RIM is meeting milestones to launch the device in the second half of 2012, while carriers may be targeting an October launch.

[Related -Google (GOOG) Gives A Lesson On The Importance Of Viewing Multiple Timeframes]

RIM received applause from the friendly audience for new BlackBerry 10 features that address its core productivity/message-centric customer base. The BlackBerry 10 UI appears similar to Microsoft Metro with quick to view notifications and seamless multi-tasking as one can view a PDF attachment, email, and list of messages all at the same time.

RIM's new on-screen keyboard appears innovative offering predictive, next word suggestions, as opposed to just word completion, and may offer the productivity that BlackBerry users look for in a touchscreen. RIM appears that it will have BBM available for BB10 smartphones.

Several developers including Gameloft, Citrix, and others showed off some competitive apps on BB10. Many indicate that BB10 is easy to develop for, and a big improvement from legacy BlackBerry.

[Related -Analysts' Upgrades And Downgrades: ENDP, FB, JDSU, LVS, HES, RIMM, QCOM]

"While RIM is addressing prior shortcomings that limited developer momentum, it is still playing catch-up vs. Apple's 600k apps and Android's 400k. We believe beyond core BlackBerry fans, RIM's smaller app/content ecosystem could constrain BlackBerry's traction among the broader consumer market," RBC Capital Markets analyst Mark Sue wrote in a note to clients.

Sue, who has a " sector perform" rating and $13 price target on RIM shares, continues to see near-term results below street expectations, as RIM sheds market share during its transition from legacy BlackBerry to BlackBerry 10. However, the good news is that RIM has cash and no debt.

Waterloo-based RIM, which was once the uncrowned king of smartphone world, is betting big on BB10 to revive its fortunes in the smartphone market, which has been dominated by Apple Inc. (NASDAQ:AAPL) and devices running Google's Android operating system.

For the fourth quarter ended March 3, 2012, Canadian -based RIM reported a net loss of $125 million or 24 cents a share, compared to a profit of $934 million or $1.78 a share for the year-ago quarter. Excluding items, net income was $418 million or 80 cents a share. Revenue for the fourth quarter fell 25 percent to $4.19 billion.

During the quarter, RIM shipped about 11.1 million BlackBerry smartphones and over 500,000 BlackBerry PlayBook tablets. On the other hand, Apple said its iPhone sales jumped 88 percent in the first three months of 2012 to 35.1 million units, while iPad sales surged 151 percent to 11.8 million units.

Shares of RIM plummeted 72 percent in the last year, and they have traded between $12.45 and $48.65 during the past 52-weeks.
"We see shares trading sideways and volatile as fundamentals remain challenging and visibility remains limited to BlackBerry 10 as a silver bullet. Licensing and partnerships may be a near-term catalyst, but the risk of becoming a sub 5% share player is a threat to a turnaround," Sue added.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageCrude Rebound

Since the price of crude oil broke below $90 per barrel in September, the Brent global benchmark has been read on...

article imageShould You Invest In The Hottest New Trend In Finance?

Thanks to major changes in regulation, social media and technology, the business of banking has undergone read on...

article imageStrong Attractor in Action Pulling S&P 500 Down

The attractor is formed by the 200-day moving average and the 50% Fibonacci retracement of the up move from read on...

article imageIs The Weak Housing Market A Warning Sign For The US Economy?

Today’s US economic releases – housing starts and business survey data for the manufacturing sector – read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.