BlackBerry subs drop, hinge on Bold & Storm
updated 03:10 pm EDT, Fri October 24, 2008
BBerry Subs Drop Fast
BlackBerry subscription rates have dropped significantly and now leave Research in Motion dependent on its new devices to avoid a potentially damaging level of fall sales, a research note from AmTech Research analyst Rob Sanderson says today. He notes that weekly subscription rates have fallen by 20 percent from September to October and that forecasts of 2.9 million new BlackBerry users by the end of its current quarter, which ends in November, are currently "at risk."
Investors are already taking this drop into account and have contributed to the steep drop in RIM's shares, the analyst says. The company's stock was trading at nearly $148 in the spring but as of Friday afternoon is worth less than $45.
Sanderson doesn't see any immediate evidence of a turnaround but notes that the release of upcoming models will be important to bolstering the company's performance, particularly in 2009. The company has been hurt by multiple delays for the BlackBerry Bold but will finally release the 3G smartphone in the US on November 4th, roughly half a year after its original announcement.
The company is also dependent on the BlackBerry Storm launches at Bell, Telus, Verizon and Vodafone, all of which will give those carriers and RIM itself one of the most direct alternatives to the iPhone.
good day
10/24, 07:38pm reply
"The company has been hurt by multiple delays for the BlackBerry Bold but will finally release the 3G smartphone in the US on November 4th, roughly half a year after its original announcement."
They need to have a big release party and get a lot of national exposure. I'm sure all the news outlets will cover it in great detail. What? You say there's something else going on in the U.S. on November 4th?
elroth
Fresh-Faced Recruit
Joined: Jul 2006
Like every other stock...
10/24, 11:52pm reply
RIM has been oversold. The economy has put a damper on all spending. The Bold should sell rather well to loyal BB users.
Constable Odo
Fresh-Faced Recruit
Joined: Aug 2007
Short Seller
10/25, 12:33am reply
I shorter RIMM at $113 which it was at only 3 weeks ago. I'll give it a few more days to bleed then cover.
RIM was slow to react to the iPhone not seeing it as a threat. They have also failed to innovate or improve as quickly as their rivals.
Their only advantage has been the Push services which are not available on other phones without the RIM service interruptions.
ClevelandAdv
Fresh-Faced Recruit
Joined: Jul 2004
ClevelandAdv.
10/26, 11:15pm reply
You're an idiot. If you were telling the truth you'd know that their ticker symbol on the TSX wasn't RIMM (which is the exchange your obviously referring as RIMM hasn't been trading above $110 on the NASDAQ since the first week of September.)
Not to mention, with the Bold coming out in a week, you'd be looking to trade and not sitting their with your d*** in your hand after making over $50 a share.
luckyday
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Joined: Apr 2008