Printed from http://www.electronista.com

Barclays: RIM's BBX phones likely delayed past early 2012

updated 04:45 pm EST, Tue November 8, 2011

Barclays does not believe RIM on time with new OS

Barclays Capital analyst Jeff Kvaal on Tuesday cut his share price target for RIM by almost half from $40 to $23 after casting doubt on promises that its first phone based on BBX would ship around early 2012. He believed that the hardware had been quietly delayed based on the typical carrier certification process. As it usually takes half a year to get a phone fully approved, any phone would ship in late winter at best and more likely sometime in mid-year, Kvaal said.

He also pointed to "checks" in the distribution chain that reportedly backed his view, although it wasn't possible to verify the accuracy of the claims.

Kvaal's view of the company's future was mixed. Subscribers were a positive for RIM, with a 40 percent year-over-year spike to 70 million in total. International sales, including in the unusually loyal UK, were also helping shore up results. Regardless, the analyst saw RIM shipping fewer phones in its current fiscal year at 56.5 million instead of 60 million.

Estimates for the BlackBerry PlayBook were also cut in half from an already low number, down to one million. RIM officially shipped 700,000 PlayBooks in the tablet's first six months on sale and, even with significantly reduced shipments in its spring quarter, had to make numerous steep discounts to keep stock moving.

The Barclays researcher warned that RIM's problems could become more glaring if BBX and the repeatedly delayed PlayBook 2.0 didn't arrive quickly enough. RIM was strong in e-mail, but it was ceding ground to Apple's iPhone and Google's Android that could see them negate remaining advantages, Kvaal said. Apple has already eliminated most of the advantage of BlackBerry Messenger with iMessage, which replicates much of real-time, secure chat but isn't limited to smartphones or to one device like RIM's feature.



By Electronista Staff
toggle

Comments

  1. rvhernandez

    Fresh-Faced Recruit

    Joined: Apr 2005

    +2

    Real Artists Ship

    Time for the Dynamic Duo to resign, don't cha think?

Login Here

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

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

IDrive cloud backup and sync service

There are a lot of cloud services out there, and nearly all of them can be used for backing up key files and folders. A few dedicated ...

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Sponsor

toggle

Most Commented

 
toggle

Popular News