1. sleepngbear's Avatar
    Is RIM Turning Into Nokia 2.0?

    The article is not as bad as the title might indicate. It's a pretty balanced bit with a few interesting comparisons with Nokia and Moto. All is not doom and gloom.

    One thing to remember when you see the topic heading 'A Very Tough Year on the Way', we're not talking about RIM going in the red. Investors think more in terms of revenue growth than just revenue. Specifically, RIM's guidance for their next fiscal year is projecting profits in every quarter; but the fact that they see lower profits in some quarters than last year is almost as bad as swinging to a loss, which is why their stock is taking a beating the last two days.

    One particularly interesting comparison:
    "RIM is seeing better performance on the low end of its product range, while losing share on the top end. Unfortunately, that is eerily similar to what ended up being the Nokia 'model' - a failure to innovate and lead the market led to share loss on the high end, after which the company focused more on its lower-end offerings and never got back in the high-end game."

    I don't think there's any question about the bolded bits. But I do think that RIM is in a better position now to get back into the high-end game than Nokia was, in that they are just a few months from releasing significantly improved higher-end phones, to be followed next year by QNX-based devices that have the potential to raise the bar again on their own. True, they may be reacting later than they should have, but it's not too late.

    I found it an interesting little read that does provide a little insight into what makes the stock price do what it does.
    03-28-11 07:17 PM