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Analyst warns Droid will hurt BlackBerry, Palm

updated 12:15 pm EST, Mon November 2, 2009

Citi urges selling Palm, RIM stock

Citigroup analyst Jim Suva today signaled a major rethink of its approach to cellphone shares by downgrading both Palm and Research in Motion stock to a "sell" recommendation. The about-face comes as a direct result of the Motorola Droid and a belief that the Android phone is a dark horse which will upset phones like the BlackBerry range or the Pre by upstaging them both at work and through sheer publicity.

"Motorola is launching of one of the most compelling offerings at [a] time when many investors have given up on the company's handsets," Suva says, adding that it should "crack open the enterprise door" and create a "promotion commotion."

The phone as an Android 2.0 device is more directly suited to work with built-in Microsoft Exchange support and should be receiving one of the largest ad campaigns in Verizon's recent history, including a Times Square billboard. Rumors have circulated that Verizon deliberately snubbed the BlackBerry Storm2 by announcing the Droid the same day as the Storm2 shipped, guaranteeing that RIM's phone would be downplayed for the rest of the year.

Apple's valuation is untouched at Citigroup, indicating the firm doesn't believe iPhone sales will be significantly affected by the Droid's appearance.



By Electronista Staff
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Comments

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +3

    and then...

    They'll come back and tell us Blackberry and Palm are buys because some new product they don't know about will come in and crush the droid. Then they'll come in and tell you to sell Blackberry and Palm and Motorola because HTC will debut some new phone that will crush them all. Until Blackberry releases their new phone that crushes everyone else.

    Mr. Analyst, if you were really good at your job, you would have told us about RIM and Palm were sells BEFORE we knew why.

  1. jpellino

    Fresh-Faced Recruit

    Joined: Oct 1999

    -1

    RSS Headline....

    Motorola Froid? I'd expect that from the frozen Finns at Nokia, but Moto?

  1. Salty

    Professional Poster

    Joined: Jul 2005

    +1

    Oi

    Weren't these same analysts clamouring about the storm? Is Android cool? Yes. Is it an iPhone killer? No. It's an iPhone knock off more than anything. It's what people who can't have iPhones or don't want iPhones get. It's a really good solution, but it's not the IT platform. It's great to have on the market, and I don't know about hurting palm too much but I'm sure it will hurt RIM. Hopefully RIM will get the clue and realize that people want more than email and txting on their phones.

  1. icewing

    Fresh-Faced Recruit

    Joined: May 2008

    +5

    yer droids...

    ...we don't serve droids in here...

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    +5

    Knowing Motorola...

    They'll s**** up their Droid project somehow. It's claimed that they're going to introduce about 20 new handsets. Not sure if they're all running Android, but that's really flooding the market with devices when they should just be concentrating on one or two at most. These companies always think that if one is good, more is much better. They really just need to focus on perfecting those one or two devices.

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