“The rollout of Apple Inc.’s 3G iPhone was seen as a direct shot at the dominance of Research In Motion Ltd. in the smart-phone market. Now at least one analyst is saying the BlackBerry’s already taking some hits,” Rex Crum reports for MarketWatch.
“Needham & Co. analyst Charlie Wolf cut his rating Wednesday on RIM’s stock to underperform — the equivalent of sell — from his previous rating of hold, saying that the company’s strength in the consumer market ‘is bound to come under siege because of the iPhone,'” Crum reports. “Wolf also lowered his 2008 earnings estimate for RIM to $3.70 a share from $4.05, and cut his 2009 outlook to a profit of $4.80 a share from $6.25.”
“Wolf said the introduction of the 3G iPhone means that “the days of no competition are over,'” Crum reports.
“Credit Suisse analyst Kulbinder Garcha had some of the same thoughts on RIM when he initiated his coverage of the company with an underperform rating. Garcha, who issued his rating before the new iPhone was released, wrote in a research note that RIM’s earnings are likely to slow down due to losing some market share in North America, along with pressures on its gross margins over the next 12 months,” Crum reports.
“The Needham analyst said that RIM is attempting to fight back. The company launched its BlackBerry Bold in the spring and is said to be releasing a new BlackBerry Thunder model in late summer. But he added that those efforts might be a little too late, as the system software in the iPhone ‘makes the device one of a kind,'” Crum reports. “‘Research In Motion has no hope of catching up on the software front, which promises to be the next battleground in the smart phone market,’ according to Wolf.”
More in the full article here.
[Thanks to MacDailyNews Reader “bc” for the heads up.]