1. the_sleuth's Avatar
    Eye on Equities
    RIMs new Blackberry off to a promising start: UBS


    Darcy Keith | Columnist profile | E-mail
    Globe and Mail Update
    Published Friday, Aug. 19, 2011 1:06PM EDT
    Last updated Friday, Aug. 19, 2011 3:56PM EDT

    Its not often these days that one comes upon an analyst report with something positive to say about Research In Motion Ltd. (RIMM-Q 26.69). But UBSs Phillip Huang did just that today - albeit its pretty lukewarm praise.

    UBS analysts visited 17 stores in Canada following the recent launch of RIMs Blackberry 7.0 phones and found them to be selling reasonably well. While certainly not comparable to the iPhone launch, and still lagging Androids, sales appeared decent with several reps eager to point us to the new Blackberries, Mr. Huang wrote. The 99xx Bold phones, in particular, appear to be selling fairly well, he said
    Given that the 7.0 products came to market a couple weeks earlier than expected, this could add up to RIM sales coming in modestly stronger than anticipated for August, Mr. Huang suggests.

    Of course, Canada is only a small market for RIM, accounting for about 8 per cent of global sales. But these early signals could hint at a reasonably successful launch in larger global markets.

    Mr. Huang is still cautious about RIMs long-term future, expecting a tough transition ahead of its move to the new QNX core operating system in 2012. While RIMs new products close the gap with competitors on feeds and speeds, RIMs ecosystem and apps continue to lag. Further, its main pillars of growth enterprise and international - are under attack and with 80 per cent plus of its net adds being non-enterprise, RIM is fighting an uphill battle for consumer mind share versus competitors.

    As for speculation that RIM could be a takeover candidate in the wake of Googles planned acquisition of Motorola announced earlier this week, Mr. Huang is doubtful. All indications are that RIM intends to go it alone for now and theres little evidence management would even contemplate an alternative unless at a significant premium, he said, pointing out such an acquisition would have to be worth the hefty sum of at least $15-billion, net of cash.

    RIM’s new Blackberry off to a promising start: UBS - The Globe and Mail
    southlander likes this.
    08-20-11 09:48 PM
  2. lnichols's Avatar
    The US rollout is going slowly. Sprint will be selling in a couple hours, Verizon is selling the 9930 but don't think they have them in stores. T-Mobile wont be out till end of month and AT&T who knows. I think the market perception will start turning around soon and people realize that RIM doesn't need to have $70 billion in cash or 550,000 activations per day to be a very successful company.
    08-20-11 09:55 PM
  3. pattste's Avatar
    I'm always amazed that so called industry analysts don't have a better way of gauging sales than by visiting a few stores (probably all in the same vicinity) and asking the reps. I mean, that's how I do it, but I don't refer to myself as an analyst.
    chiefbroski likes this.
    08-20-11 11:16 PM
  4. MarketRide's Avatar
    I'm always amazed that so called industry analysts don't have a better way of gauging sales than by visiting a few stores (probably all in the same vicinity) and asking the reps. I mean, that's how I do it, but I don't refer to myself as an analyst.
    and you probably know more than 80% of the analysts
    08-20-11 11:32 PM
  5. Economist101's Avatar
    I'm always amazed that so called industry analysts don't have a better way of gauging sales than by visiting a few stores (probably all in the same vicinity) and asking the reps. I mean, that's how I do it, but I don't refer to myself as an analyst.
    I'm curious. . .how would you do it? RIM only releases devices "shipped" during its earnings calls, but those figures tell us little about sell through. Analysts could get this information from the corporate offices of the carriers if the carriers were willing to share it, but we all know they're not. I understand that you aren't necessarily satisfied by this particular method, but I'm not sure there's a better way to reach a conclusion short of RIM or its partners providing the kind of data they normally only provide at specific quarterly intervals.
    08-21-11 01:46 AM
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