“Research In Motion is losing market share much faster than expected to rivals Apple and Google, amid mounting concerns over its cash flow and ability to meet its outlook, analysts warned on Friday,” Tenzin Pema reports for Reuters.
MacDailyNews Take: ‘Twas completely expected here, thanks.
“Shares of RIM tumbled 22 percent in Frankfurt trading. In the United States, the BlackBerry maker’s shares were down 20 percent in thin early pre-market trading,” Pema reports. “On Thursday, the company posted a sharp drop in quarterly profit, painted a dismal picture for the current quarter and said it now expects to reach only the lower end of an already reduced full-year outlook.”
Pema reports, “The weak performance showed how much BlackBerry — once a byword for corporate communication — has lost favor as Apple’s iPhone and devices running Google’s Android software take greater market share, especially in the United States.”
MacDailyNews Take: They always mention Android, but what kind of company standardizes on an insecure, fragmented clone (Android) that’s subject to tens of patent infringement lawsuits around the world instead of the real thing? A company with a flawed decision-making process, that’s what kind.
“RIM’s management remains in ‘blatant denial,’ said Sanford C. Bernstein analyst Pierre Ferragu, who believes the company’s outlook for the third quarter and the full year appears ‘unrealistic,'” Pema reports. “Co-Chief Executive Mike Lazaridis, in a conference call after the results, said he was confident that RIM was on track to return to growth in the third quarter, while co-CEO Jim Balsillie promised a software upgrade he dubbed PlayBook 2.0.”
MacDailyNews Take: As we just wrote yesterday, DCW Research In Motion’s half-CEOs and other “management” are delusional, lying, or both, or perhaps something else entirely.
Pema reports, “National Bank Financial analyst Kris Thompson called the PlayBook ‘nothing short of a disaster’ and said RIM now needs to spend money to promote the PlayBook in order to move inventory… He downgraded RIM to ‘underperform’ from ‘sector perform.’ Citigroup analysts Jim Suva and Kevin Dennean… reiterated their ‘sell’ rating on the stock. Brokerages Susquehanna, CIBC and Raymond James also cut their price targets on the stock.”
MacDailyNews Take: Amateur hour’s end is nigh.
Read more in the full article here.
MacDailyNews Take: We give RIM a “Fsck the ambulance, call a hearse” rating.
Related article:
Beleaguered RIM reports precipitous drop in quarterly profit, weak sales; stock plummets – September 15, 2011