“Don’t say you weren’t warned. When Research In Motion failed to impress a jaded Street gang last night, the BlackBerry maker’s stock was taken behind the woodshed for a good old-fashioned beating,” Anders Bylund reports for The Motley Fool.
“The company appears to be gearing up for war. The next-generation Apple iPhone will hit store shelves in a couple of weeks, and Google has handset partners like Motorola and Samsung lined up for the launch of its Android platform a couple of months later,” Bylund reports. “Nokia is nibbling at the BlackBerry’s traditional home field with new models of a corporate-use slant, and Sony Ericsson might jump aboard that Android bandwagon, too. The competition looks ready to launch a massive onslaught…”
“So I don’t think that RIM’s increased [marketing] spending is the real reason for the price drop today, nor do I think the lowered earnings guidance is to blame. Instead, these items were taken as confirmation that the company is readying for a fight — and it’s a battle it might not win. Today’s drop was steep, but the stock still trades at 55 times trailing earnings at prices not seen since late April,” Bylund writes. “It can still fall a lot further…”
Full article here.
“It’s kind of one more entrant into an already very busy space with lots of choice for consumers,” RIM Co-CEO Jim Balsillie said of Apple’s iPhone on February 12, 2007. “But in terms of a sort of a sea-change for BlackBerry, I would think that’s overstating it.”
RIMM is currently trading down $18.83 (-13.23%) at $123.51 per share.
Time to short it.
what exactly IS this iPhone I keep hearing about?
I love my iPhone, I wouldn’t trade it for one million crackberry’s
A RIMM job is indeed what you’ll get if you buy their stock right now. The next year is going to be quite rough for them.
I feel sorry for RIM. I dont know what they are going to do now=)
My company forced me to use a Blackberry. It is utter crap. I still have my iPhone and continue to use it for personal purposes, but hopefully one day they’ll let me use it with Exchange. I’ll never buy a Blackberry – ever.
I would not want to be in RIM management right now….
Eeek!
During the call yesterday, Balsillie did not mention the iPhone directly. When an analyst asked if the company thought its customer base would overlap with the new iPhone, the CEO simply said “Nah.”
http://www.marketwatch.com/news/story/research-motion-shares-fall-disappointing/story.aspx?guid={D774B5D5-E004-4B0F-A9D4-CE14F449782F}&siteid=yhoof
Seems that the investors do not agreed with you.
By not saying the iPhone is a big and real competitor, Balsillie is acting like Motorola’s CEO, Zander. And you know what happened to him.
Comment from the Legs Must Be Crazy in 3. . .2 . .
The Blackberry has the WORST user interface in the world. It is COMPLETELY UNUSABLE and HORRIBLY ILLOGICAL.
…1. RIM is dead. The funeral is July 11th.
Is that what you wanted Ampar?
Meanwhile…. as Nokia scared and extremely worried about loosing its market it is calling all .Net CF developers for a conference on Thursday July 10th 2008…
“Calling Windows Mobile .NET developers! S60 on Symbian is the #1 smartphone platform in the world with over 165 million devices shipped as of March 2008. For Windows Mobile .NET application developers, this is a new market made available by utilizing Red Five Labs (a Symbian Platinum Partner) Net60 SDK and Runtime, which enables existing Windows Mobile .NET CF applications to run on S60 3rd Edition devices. This webinar will summarize the market opportunity available and provide a detailed technical overview of Red Five’s Net60 tools and a case study/example of taking an app from Windows Mobile .NET CF and enabling it on a Nokia S60 3rd Edition device.
Speakers: Eero Kukko, Head of S60 Platform Marketing, Nokia Mike Welham, co-founder & CTO, Red Five Labs
Presentation Time: 60 minutes including Q&A;The webinar will be presented at 9AM Pacific time / 12 noon”
Nice, Crazylegs!
(FWIW, I don’t have a problem with RIM or decent competition.)
…and like a Phoenix out of the ashes will arise a Bold new beginning for RIM…on July 12th when they introduce the unannounced iBerry with a 3.5 inch touchscreen, 3G, GPS, integration with Exchange, MobileMoi, and Mike Lazaridis in a sexy black turtleneck (without questions about his health ’cause he’s got plenty of girth). Oh it’s gonna be sweet!
@Jim Balsillie
Funny how one more entrant from someone who cares…
can turn lots of choice in a crowded market…
into lots of really bad choices in a crowded niche market.
Hope those stock options the Board gave you were to buy High!
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