Printed from http://www.electronista.com

RIM may fall short of sales targets post-Storm

updated 12:40 pm EST, Mon November 24, 2008

RIM Falling Short in Q3 08

Research in Motion's heavily promoted BlackBerry Storm launch this Friday may not have been enough to save the company from a poor financial quarter, according to a new research note by Citi analyst Jim Suva. Although the Storm sold out at many Verizon stores since launch, Suva supports claims of a software-based delay and notes that many stores actually received significantly less units than expected, forcing many customers to wait as late as December 15th to get devices they would otherwise have had on launch.

The delay won't immediately affect the number of phones RIM can claim to have shipped but will prevent many of the affected owners from counting themselves as BlackBerry push e-mail subscribers until December, or just after the November 29th end of RIM's third financial quarter for the year.

A lack of new subscribers also pervades other areas of RIM's business, the analyst says. Early data for AT&T's version of the BlackBerry Bold points to most buyers being existing users rather than new customers, while enterprise-class sales are seen cooling across the board and hurting RIM's most reliable market. T-Mobile's new preference for the Android-based G1 as well as the high costs of combo voice and data plans for home users are both characterized as factors.

A sub-par quarter would potentially represent serious damage to RIM, which suffered its first clear setback of recent memory when Apple's iPhone overtook BlackBerries in shipments for the first time during the summer.



By Electronista Staff
toggle

Comments

  1. rexray

    Fresh-Faced Recruit

    Joined: Jul 2002

    -1

    slight grammatical error?

    Shouldn't it read "significantly fewer units than expected," rather than, "significantly less units than expected?"

    It just seems to look wrong with "less."

  1. snork

    Fresh-Faced Recruit

    Joined: Feb 2008

    -1

    Plans too high

    I'd get a Blackberry in a heartbeat if the voice/text/email plan wasn't $99 from Verizon. I know they're pushing corporate customers, but I think they'd sell a bunch more units to non-business customers if the plans were more affordable for those without an expense account and would like an alternative to the iPhone.

  1. chefpastry

    Mac Enthusiast

    Joined: Nov 2005

    -1

    Bad reviews

    There has also been a bunch of poor reviews for the Storm. Since they didn't ship many on the initial run, lots of those potential customers will have more chances to reconsider...

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +1

    Please...

    We're going to trust an analyst? And one from "Please bail us out of our ineptitude!" Citi?

  1. Constable Odo

    Fresh-Faced Recruit

    Joined: Aug 2007

    -1

    What's longer than a

    Storm purchase line? A Storm return line. Haha.
    Like every major tech company, RIM sales will be down this year. Nothing unusual about this in a poor economy. What's to even speculate about?

  1. trevj

    Fresh-Faced Recruit

    Joined: Dec 1999

    -1

    re. slight grammatical

    The reason it "just seems to look wrong" is because it is wrong. Fewer is used as an adjective when the noun can be counted (fewer cars on the road, fewer people buying PCs, etc.). Less is used as an adjective when the noun can't be counted (less water in the sink, less air in the balloon, etc.).

  1. trevj

    Fresh-Faced Recruit

    Joined: Dec 1999

    -1

    re. slight grammatical

    The reason it "just seems to look wrong" is because it is wrong. Fewer is used as an adjective when the noun can be counted (fewer cars on the road, fewer people buying PCs, etc.). Less is used as an adjective when the noun can't be counted (less water in the sink, less air in the balloon, etc.).

  1. trevj

    Fresh-Faced Recruit

    Joined: Dec 1999

    -1

    re. slight grammatical

    The reason it "just seems to look wrong" is because it is wrong. Fewer is used as an adjective when the noun can be counted (fewer cars on the road, fewer people buying PCs, etc.). Less is used as an adjective when the noun can't be counted (less water in the sink, less air in the balloon, etc.).

  1. trevj

    Fresh-Faced Recruit

    Joined: Dec 1999

    -1

    dang

    I should have hit "Submit" fewer times. :-(

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

DoxieGo Portable Scanner

Sometimes, people need to scan things, but having a computer at hand to do so isn't exactly feasible. Maybe it's the home of a relativ ...

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Sponsor

toggle

Most Commented

 
toggle

Popular News