updated 11:30 am EDT, Tue September 7, 2010
Goldman urges RIM sell in face of Android, iPhone
BlackBerry adoption at work is dropping fast, Goldman Sachs analyst Simona Jankowski warned on Tuesday. In a study tracking corporate plans for the next six months, plans to shrink their BlackBerry use grew from just four percent last October to 21 percent in August. Meanwhile, those who wanted to expand BlackBerry use dropped to 54 percent, down from 68 percent a year earlier.
Much more doubt also exists, the study pointed out: uncertainty about BlackBerry plans reached a new high of 13 percent where it had been just two percent in the previous study.
Jankowski reiterated her call to sell RIM stock and attributed the lack of confidence in the BlackBerry to corporate buyers veering away from the phone for their workers. Many are now at least considering Android or iPhone, either to avoid being overly dependent on one company or to satisfy staff that had been demanding they use their own phones. Some companies have been adding options or, less commonly, switching entirely to another platform.
Some of the objection has been RIM's insistence on conservative devices like the Curve 3G and only reluctantly exploring touchscreens like the Torch.
RIM might not have room to afford such a leap. It has lost smartphone share even as it gained absolute cellphone share, since many smartphone rivals might be smaller but are gaining at much faster rates. [via Barron's]