Tuesday, September 28, 2010

Morgan: Great Headwinds for RIM (RIMM)

With the launch of the 'PlayBook' today i thought it would be appropriate for me to bring up some Morgan research form August 25th highlighting many headwinds Research in Motion is facing in the near future. Specifically the impact of mid east regulations, which could see a .30 per share impact on earnings.

Morgan See's Rim's global smartphone market share dropping to 13% in 2013. Rim is betting heavily on their BBM service, a lot of pressure on one tiny app. I do use the BBM application but it is not something i must have or cant live without..

Morgan's concerns are based on the following 4 items:

1) The ongoing chorus of international countries threatening to shut down Blackberry service;

2) The drumbeat of enterprises starting to explore “bring your own phone” devices such as iPhone for corporate email;
3) The recent success of Android;
4) The not-unexpected, but disheartening nonetheless,lukewarm initial sales of the new Torch.'

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