Increased Competition Threatens Research in Motion

Citigroup analyst Jim Suva isn't happy about Research In Motion Ltd. (RIMM), and on Monday he downgraded the stock to "sell."

Investors dumped the shares Monday in response to Mr. Suva's bearish report. The Nasdaq listing is down $3.55, or 6%, at $55.18, while the stock in Toronto fell $4.33 (Canadian), or nearly 7%, to $59.49. That represents a seven-month low for RIM's stock, which has been in a freefall since trading above $90 as recently as late September.

Mr. Suva's big worry? New gadgets from RIM's competitors, most notably Motorola's (MOT) Android handheld device, look set to steal the limelight away from RIM's famed Blackberry - and just as consumers start sniffing around for cool new toys for Christmas, to boot.

"Increased competition with more attractive devices and applications pressures RIMM’s growth," Mr. Suva wrote.

He added that some big spending by telecom carriers to promote Blackberry products is winding down, while big carriers Verizon (VZ) and T Mobile are stepping up their own promotions of the Android with major launches this week.

By contrast, he said, RIM's own new innovations, including its new Blackberry Storm 2 device and improved applications, "are minor evolutions at a time when the industry and competition is seeing major revolutions of applications and improved customer mobile experiences."

For similar competitive reasons, Mr. Suva also downgraded another device maker, Palm Inc. (PALM) to sell" from "hold." Palm's stock was down 4.5% in afternoon trading on Monday.

He upgraded Motorola to "buy" from "hold", raising his target price to $10.50 (U.S.) from $8.57. The stock was up 35 cents, or 4.2%, at $8.93.

Comments

[JamesApple:]

Rim has long neglected the needs of enterprise specializations that differentiate their product and service offerings to compete for businesses profitably. Rim provides email and messaging capabilities only. Google on the other hand offers the Android, providing a lot more enterprise features and capabilities most notably in Android's customizable layer offering every phone maker in the world to differentiate their offerings specific to their hardware and software advantages tailored in meeting multitudes of enterprise business needs with ambient opportunities. Rim cannot match such Android superiorities. Android is much more the natural choice for enterprises with Google much more capable and flexible than Rim in supporting the enterprises.

Nov 02 05:13 PM

[Wireless Wiz:]

320 out of James' 331 comments show hatred towards RIM. This is the only thing he knows. Check it out. Can't be credible with that track record.


On Nov 02 05:13 PM JamesApple wrote:

> Rim has long neglected the needs of enterprise specializations that
> differentiate their product and service offerings to compete for
> businesses profitably. Rim provides email and messaging capabilities
> only. Google on the other hand offers the Android, providing a lot
> more enterprise features and capabilities most notably in Android's
> customizable layer offering every phone maker in the world to differentiate
> their offerings specific to their hardware and software advantages
> tailored in meeting multitudes of enterprise business needs with
> ambient opportunities. Rim cannot match such Android superiorities.
> Android is much more the natural choice for enterprises with Google
> much more capable and flexible than Rim in supporting the enterprises.

Nov 02 05:16 PM

[Charles Colaco:]

I think RIMM is big on there enterprise email and messaging capabilities and used it for long time, until last year, when I switched to iPhone. iPhone device is a piece of crap, iPhone is for kids so like to play games.

I own rimm stock and i'm losing big time, but I know, it will come back within a month. i'm going to buy more in next few days.

Nov 02 05:34 PM

[JamesApple:]

Some people have different opinions than the number 1 iPhone consumer and business user satisfaction ratings reported by JD Power most recently. I had witnessed many kiddy fights between iPhone owners and blackberry owners.

I have 2 iPhones. Carrying my GS doing everything I want on it. I have 7 blackberrys including the newer models. These blackberrys are all sitting in my drawers collecting dust.

Nov 02 05:46 PM

[Nextel Acce...:]

Google Android may crush everyone!

Nov 02 07:56 PM

[Roger Knights:]

"Google Android may crush everyone!"

No, only the second-raters.

Nov 02 10:34 PM

[JamesApple:]

Google on 'blackberry for a penny' and you will find Amazon had been selling blackberry curves for $0.01 for quite a while.

First Verizon had been flooding America with Buy1 blackberry Get1 blackberry free since 2007. That means of the 22 millions blackberrys sold since 2007, a full 11 blackberrys were dead giveaways. Isn't that called dumping?

The deadpan BOGOberrys are giving ways to the Moto Droids. You don't see BOGO deals on Moto Droids because Moto Droid is a class act that would never be given away like the junky BOGOberrys or sold on Amazon for $0.01

Nov 03 01:15 AM

[RIMMSTER:]

I dont know what I am more suprised at. Ur hate of Blackberry or the fact that u have 2 iPhones. I have one, and cannot stand the Piece Of Sh!t. Can't wait till my contract expires.


On Nov 02 05:46 PM JamesApple wrote:

> Some people have different opinions than the number 1 iPhone consumer
> and business user satisfaction ratings reported by JD Power most
> recently. I had witnessed many kiddy fights between iPhone owners
> and blackberry owners.
>
> I have 2 iPhones. Carrying my GS doing everything I want on it. I
> have 7 blackberrys including the newer models. These blackberrys
> are all sitting in my drawers collecting dust.

Nov 03 02:22 AM

[JamesApple:]

4 of the 7 blackberrys had trackball problems spending more time at Rim being fixed than being of use. 2 of the 7 blackberrys had all kinds of problems with the pre-installed programs that never worked, one had a crashed screen, and a malfunctioning battery. Antenna problems, phone ceasures, terrible receptions and all. Only the old 8800 had few problems and I liked the side wheel much better than those blackberry trackballs.

I have not had one single issue or problem with iPhone. Upgraded from 3G to the 3GS with many people wanting to buy the 3G from me but I am keeping the 3G for iPhone development test machine.

JD Power rates iPhone number 1 for both consumer and business user satisfaction. I am going to use my old blackberry 8800 as a hockey puck.

Nov 03 02:38 AM

[directcommu...:]

maybe even a carrier can buy out rimm...verizon?

Nov 08 03:49 PM