1. rollingrock1988's Avatar
    RIM: BB Delays, Carrier Pressure Could Hurt, Says Jefferies - Tech Trader Daily - Barrons.com

    Shares of Research in Motion (RIMM) are down 24 cents, or half a point, at $43.33, after Jefferies & Co. analyst Peter Misek this morning wrote that further bad news may be on the way for RIM following its cut in forecast last month. He reiterated an Underperform rating and a $35 price target.

    RIM’s forthcoming BlackBerry models, announced earlier this month at the company’s capital markets day, are running behind schedule, he warns, probably not shipping until October, rather than in August, as expected, given the need for further “integration, polishing, and carrier certification.” Misek doesn’t cite any particular sources, but notes that remarks by France Telecom’s management recently indicated there were “bugs” in some of RIM’s forthcoming products.

    He notes, too, remarks by Marvell Technology Group (MRVL) last night, which gets 80% of its wireless chip business from RIM, he estimates.

    “All of mgmt’s RIM comments were focused on a hopeful ramp in H2:CY11 and not on FQ2,” he writes.

    Management is going to have to either give up sales or give up margins as carriers balk at some aging product that’s in inventory currently, and that could cause an “earnings reset,” he thinks.

    Misek in fact is maintaining his existing forecast for $5.50 per share in earnings this year, even though RIM management has stuck to a $7.50 forecast.

    The pressure is increasing on RIM at carriers, he thinks: “Based on our checks, RIM is being forced to increase handset bounties and co-marketing payments in order to retain carriers and slots. We believe carriers want to support three main ecosystems: iOS, Android, and one TBD. Unfortunately for RIM, Windows is now being considered, but Windows 8 may be a H2:CY12 or even 2013 event.”

    Misek’s $35 price target represents the bottom of a two-year historical P/E range of 7 times to 18 times foreword earnings, he notes.

    I really, really hope that there is no delay.
    05-27-11 12:46 PM
  2. UrbanGlowCam's Avatar
    What does Marvell know? Didn't RIM stop using them after the Torch? They had their chance with the Playbook too IIRC but couldn't meet the deadline. Then they went with TI. Handsets are now primarily Qualcomm.

    I highly doubt were waiting until October when were seeing .100 builds popping up for just about every device. Internally I'm sure they're even higher. The Torch launched for AT&T with .1xx if that is any indication. I say July/Aug latest.

    Posted from my CrackBerry at wapforums.crackberry.com
    05-27-11 01:08 PM
  3. habicht's Avatar
    I've seen people using 9900 as their primary device, so there are no big bugs...

    Posted from my CrackBerry at wapforums.crackberry.com
    05-27-11 01:19 PM
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