Citigroup Analyst: Rimm Needs to Launch Storm by Holidays

The next 30 days or so will be critical to shares of Research in Motion (RIMM), with its new Storm smartphone being the key driver, says Citigroup analyst Jim Suva, pointing out the hazards of any potential delays to its launch.

“Simply put, we think RIM needs a timely and successful launch of the Storm in time for the holidays,” Mr. Suva said in a note to clients. The Storm, RIM’s first touchscreen smartphone, is initially to be marked through Verizon (VZ) Wireless.

Mr. Suva’s note also points that RIM’s other new smartphone – the “much-anticipated, long-delayed” Bold - is finally available through AT&T (T), RIM’s largest carrier partner in the U.S. It was launched on Tuesday. “Checks at AT&T stores show strong initial demand with many stores having sold out before noon,” he says, reflecting pent-up demand thanks to launch delays and replacement sales rather than new subscriptions.

As well, in his view, the enterprise/business focus of the Bold is likely to limit its mass appeal, and that RIM recognizes “its ambitions are in the consumer space,” a niche which the Storm smartphone and the clamshell Kickstart is meant to fill.

If the Storm model “only reaches Verizon/Vodaphone in late November, we believe that results will be mixed.”

Comments

[provengers666:]

ummm, what do they mean by this: "If the Storm model “only reaches Verizon/Vodaphone in late November, we believe that results will be mixed.” Did I miss something? Didn't Vod announce they were launching it on 11-11-08?? And they were basically going to be giving it away for FREE witha minimum 18 month contract?

And VZ is scheduled to release it by the 17th. So why would this make RIMMs results "mixed"??? They will sell thru all of the BOLDS and STORMS they can make. How is that "mixed"???

2008 Nov 05 04:22 PM

[Java User:]

Storm won't get anywhere mainly because Verizon blocks 3rd party free apps and services. iPhone has a lot of free or cheap 3rd party apps, other phones have powerful free app such as LifeInPocket and Google Map.

What Free Apps Storm has?

2008 Nov 05 05:37 PM