UBS Analyst: T-Mobile's Trial Promotion for RIMM's Javelin a Real Surprise

News that Research In Motion Ltd.'s (RIMM) BlackBerry Curve 8900, otherwise known as the Javelin, has launched with T-Mobile Germany comes as little surprise given what has been circulating around the blogosphere. But what is a surprise to UBS analyst Jeffrey Fan, is that T-Mobile will offer a free six-month trial promotion for those who buy the smartphone and subscribe to or extend a BlackBerry Internet Service [BIS] plan that go for as little as €4.95 per month. The promotion will initially be limited until December 31, 2008.

Mr. Fan told clients:

The trial essentially lowers the total cost of ownership and could help stimulate interest as the BIS monthly add-on may be difficult for consumers in tougher economic times. However, it’s unclear whether RIM is providing any promotional funds or if their monthly service fees will be impacted, though may already be reflected in guidance.

He rates RIM shares at “neutral” with a $71 price target.

Comments

[m goode:]

I wonder if that thing does streaming video? If it did I would use it to check out the behind the scenes footage of the new Criss Angel and Cirque Du Soleil collaboration entitled "Believe." Ever since I started working with Cirque I've heard nothing but awesome things about the show. One of my associates got to see the show and wouldn't stop talking about the costumes. Has anyone else seen the show? If not, check out some of the behind the scenes footage on youtube.com/cirquelasv...

2008 Nov 13 07:06 PM