“Investors are much more aggressive in shorting RIM shares than those of its rivals, including Apple, Motorola Inc. and Nokia Corp.,” Avery reports. “One measurement traders use to assess sentiment on a stock is the short interest ratio, calculated by dividing shares sold short on expectation of lower prices by the average daily volume of a stock. For RIM this ratio is 8.2, for Nokia it’s 5.5, for Motorola 1.9 and for Apple, just 0.96.”
“Yesterday, Pierre Ferragu, a senior analyst with Sanford C. Bernstein & Co., published a detailed assessment of RIM’s future. In the short-term, he sees some upside for the stock, in part because of RIM’s international growth, and he raised his share profit estimate for the last quarter by a few cents (RIM reports March 31). But longer term, he says the company is overly attached to technical successes of the past as it designs its future products, and therefore likely to lose the advantage it’s held over rivals for the last decade,” Avery reports. “‘The breakthrough innovation of 10 years ago rarely makes the breakthrough innovation of today, and the company’s current strategy is too centred on leveraging in today’s changing environment what made BlackBerry so strong in the past,’ he wrote.”
Avery reports, “For RIM, the challenge is not just about building a browser and interface that matches Apple’s. As wireless traffic explodes by an expected 25-fold in the next four years, RIM will face significant increases in costs associated with running its NOC, Mr. Ferragu says, adding that RIM has not appreciated how much Apple has revolutionized mobile data with its iPhone.”
Full article here.
[Thanks to MacDailyNews Reader “cptnkirk” for the heads up.]
The dinosaur will fail to evolve and become extinct.
Oh, Apple changed the face of mobile phones? You mean besides the cosmetics?!
Is that a first? LOL
@NCG598
If you truly are serious in what you say, one of two things are true.
1. You have never even touched an iPhone.
2. You have no idea what has been happening the last few years.
One other possibility.
You are a troll.
Clinton says he doesn’t get as much stuff on the RIM
@nomoremsbs: ROTFLMAO…almost made the water come out of my nose…
@ JanisOne
“The dinosaur will fail to evolve and become extinct.”
That, or they will evolve into the birds flying who fly all over the planet.
Watch out for those talons
I have an iPhone since day one. Stood in line just to tick off that idioit Steve Ballmer. I was as red as he was when he seen the sales results. Although, I was sun burned my the Manhattan Beach sun!
No troll!
Research In Motion should study the demise of Word Perfect and Lotus 1-2-3. They are about to follow in their footsteps.
Maybe they should change their name to “Research in Stasis.” Or something.
I think RIM are caught square in the middle of The Innovator’s Dilemma. From the summary:
It was as if the leading firms were held captive by their customers, enabling attacking entrant firms to topple the incumbent industry leaders each time a disruptive technology emerged.
Interesting and intelligent analysis that seems to attract inane comments.
It must be some kind of inverse attraction law.
A better metaphor is that the iPhone is the METEOR smashing into the planet of the Dinosaur Blackberries and there will be no evolution happening at all – you can’t evolve when you’re ON FIRE and being smashed to pieces…
They aren’t called “RIM” for nothin’
this guy’s track record is terrible on RIM. i read the entire report. despite being an apple fan, i find his work lacking. only mdn fanboys would believe this crap.
I agree. They only understand the aesthetics are shiny just like every other Apple product… Go RIM gooo!
RIM should by Palm.