Piper Jaffray is out somewhat cautious on Research in Motion (NASDAQ:RIMM) saying their checks indicated BlackBerry sales declined in June at AT&T and Sprint due to increasing smartphone competition, as BlackBerry sales appeared to lose share to the Palm Pre at Sprint and the new 3GS iPhone and older $99 iPhone at AT&T. BlackBerry sales at T-Mobile remained solid, but Verizon sales were slightly weaker following the termination of the BOGO promotion.
Increasing Competition – Remain Neutral: Firm believes the Palm Pre and iPhone products will remain popular with consumers and we anticipate increasing smartphone competition with additional launches in 2H09 such as the G2 at T-Mobile in August, and several mid-range smartphones from LG, Nokia, Motorola and Samsung in the upcoming months. As such, they anticipate increasing smartphone competition in 2HCY09 could result in RIM struggling to maintain its current market share and margin levels.
Notablecalls: While it shouldn't come as a surprise that the Pre and 3GS iPhone launches dented BBerry sales, the chart of RIMM looks broken.
On the other hand some of this has been discounted by the recent slide from $85 to $66. This makes the scenario of down-bounce-and further down most likely in my book.
Not making a call here but thought you should know.
Increasing Competition – Remain Neutral: Firm believes the Palm Pre and iPhone products will remain popular with consumers and we anticipate increasing smartphone competition with additional launches in 2H09 such as the G2 at T-Mobile in August, and several mid-range smartphones from LG, Nokia, Motorola and Samsung in the upcoming months. As such, they anticipate increasing smartphone competition in 2HCY09 could result in RIM struggling to maintain its current market share and margin levels.
Notablecalls: While it shouldn't come as a surprise that the Pre and 3GS iPhone launches dented BBerry sales, the chart of RIMM looks broken.
On the other hand some of this has been discounted by the recent slide from $85 to $66. This makes the scenario of down-bounce-and further down most likely in my book.
Not making a call here but thought you should know.
2 comments:
no surprise in anything you said. the real story is the 2nd half of the year as rimm has plenty of new ammunition left in it's chest.
yeah, bring it on RIMM fanboys.
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