Research In Motion's Blackberry Bold Launch Should Calm Investors

The announced launch of Research in Motion Ltd's (RIMM) BlackBerry Bold in Germany should calm anxious investors, says Jim Suva, Citigroup Global Markets analyst. 

On Wednesday, the company said it has begun selling its new BlackBerry Bold 3G handset in Germany through T-Mobile, as part of a much anticipated international launch that will target high end consumers and enterprise in the next few weeks. 

Mr. Suva wrote:

Research in Motion had said Bold would be released during summer, but investor angst increased with each passing week without a launch, leading to fears of Sept launch. 

We believe actual launch removes significant sentiment overhang from the shares and should counter fears of rampant ad spending that has served as additional stock overhang.

Mr. Suva said he is impressed with the Bold, noting the browsing is far superior to existing BlackBerry devices. He told clients that he expects Bold to have strong appeal with international business travelers not that the device is allowed for usage in Korea and Japan.

In addition to the Bold launch, the analyst added that investors can expect two more positive catalysts before the end of the year, with the expected release of touchscreen Thunder and clamshell Kickstart in time for the holiday season.

Mr. Suva maintained his "buy" rating and  $160 price target.

Comments

[Anonymous W...:]

Yeah, will really calm Apple investors because it's not going to do that well over time. Just not going to be that impressive to consumer or enterprise other than maybe if a natural replacement for existing RIMM models. Once all 3 models are out and time tells the real story, the RIMM gloom will set in pretty firmly eliminating it as a growth story. The future is going to be more of a pocket PC communicator for both enterprise and consumer markets and even more so for enterprise. Apple's strengths will make it so attractive real soon in the enterprise markets and RIMM can't hold onto the majority of the consumer market for sure. Can't see investing in RIMM at these levels at all.

2008 Aug 08 07:02 AM

[Hayweed:]

No lines formed to get the bold. That is the big story.

2008 Aug 08 08:34 AM

[Tecanalyst:]

Large corporates don't tend to form lines... they just put in huge orders that tend to go under the radar. Remember Bold is not a consumer device like the iPhone; it's a high end enterprise device.

2008 Aug 08 08:48 AM

[Hayweed:]

50% of Rimm's business is to the consumer. That is why they need the lines. No lines gives the perception that the phone is not that great. Just wait until at&t sells it next to the iphone. The bold will look like an old car.

2008 Aug 08 09:36 AM

[Tecanalyst:]

The Bold is not aimed at consumers - high end corporate as I said - so there were never going to be lines. Javelin, Thunder and Kickstart are the upcoming consumer products.

2008 Aug 08 10:52 AM

[Hayweed:]

The kickstart is an edge phone with no 3g so how will it compete with the iphone. The thunder soon to be the blunder is a first try at a touchscreen which will most likely not compare well but will be pushed hard. Check out the instinct which while a big deal for sprint has seen mediocre reviews by almost everyone. Try out their browser which while functional is no iphone.

Face it, email is great but the web is where everything is going. iPhone is light years ahead of Rimm on this.

2008 Aug 08 12:55 PM

[jenny:]

At least RIMM is recongnizing the need to expand market share. I think calling the Bold an iPhone killer is purely for dramatics. In fact, there doesn't even need to be a winner. Both of these phones appeal to distinct demographics. The Bold is definitely a good competitor for iPhone. Sentiment may be down for RIMM right now (www.predictwallstreet....), but I think we'll see a rise soon.

2008 Aug 12 04:02 PM

[.crazylegs..:]

been watching you a long time hasn't been watching the mobile space for a long time. simply doesn't understand how economics and elasticity of demand works. just keep believing there will only be one platform that thrives in a billion plus annual unit market. even though the iphone is an amazing device, it just won't hurt the blackberry. what's funny is it actually helps blackberry sales due to more attention to smartphones and more folks wanting more than just a voice capable handset.

carriers could never do with iphone what they are doing with blackberry - offering cheap data/email plans. why? because iphone has such a great browser. the owners use them so much that they eat up network capacity/bandwidth. so they'll have to keep the price of data high to justify necessary upgrades over time. RIM compresses all data through their network so the data intensity/bandwidth usage is much lower.

RIM gives the carrier greater incentive to offer their product because 1. they subsidize them less (i.e. lose less money on the handset = quicker time to profitable sub) and 2. they get a high value customer (data upsell) that respects the use of the network.

the average person doesn't understand this, but the carriers sure do, and in time, you'll see more cheap and/or pre-pay bb plans that drive huge amounts of adoption.

2008 Aug 13 02:02 PM

[Caltorguy:]

I tend to agree with last comment. The iPhone has a great browser but I question whether most big companies would even see that as a benefit - hell a lot of companies actually block webmail because they want the security of having all email go through their (and RIM) servers. There is also the cost of data which the other poster alludes to - it aint free so why give give staff devices that encourage people to use it like crazy? RIM certainly won't beat Apple on any consumer smartphone but it has establihed itself as the business smartphone brand, and businesses being conservative, that could pay big dividends for a long time to come.

2008 Aug 13 06:34 PM

[Yemmi:]

Calturguy,

Every journey starts with a single step.


www.portfolio.com/view...


"We are actually reviewing iPhones from a HSBC Group perspective ... and when I say that, I mean globally"


200,000 iPhones is a big order, but if this signifies a trend, the ripples could spread much farther. Phones are cheaper and replaced more often than computers. With Vista widely perceived as junk, and many companies holding off upgrading from XP, could a good corporate experience with the iPhone trigger the famous Apple 'halo-effect' and bring Macs into the office?

2008 Aug 15 09:54 AM