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"RIM cannot compete on cost, it cannot compete on user experience, it does not have the range of...

"RIM cannot compete on cost, it cannot compete on user experience, it does not have the range of devices offered on other ecosystems, it cannot compete on content and to date it has not been able to compete on development talent," says Pac Crest's James Faucette, outlining his bear case on Research In Motion (RIMM). Pac Crest's checks indicate RIM's channel inventories are "still way too high," and that retailers are cutting down on BlackBerry shelf space.
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Comments (20)
  • Energysystems
    , contributor
    Comments (1582) | Send Message
     
    Thanks for telling us whatever everyone realized years ago lol
    10 Sep 2012, 05:33 PM Reply Like
  • LoganSix
    , contributor
    Comments (641) | Send Message
     
    "RIM cannot compete on cost"

     

    How hard is it not to over charge your customers by $200, like Apple does?
    10 Sep 2012, 05:43 PM Reply Like
  • GSlusher
    , contributor
    Comments (1279) | Send Message
     
    @LoganSix:

     

    A few points:

     

    1. When I checked last week, there were a lot of Android phones selling for the same as the iPhone 4S, much less the iPhone 4.

     

    2. Apparently, a lot of people don't agree that they are "over charged" for iPhones. In the last reported quarter, Apple sold "only" 26M iPhones. In about the same time, RIM shipped 7.8M Blackberries. That's more than 3-to-1.

     

    3. What something is worth is judged by the market. Perhaps you don't believe in the market. (See point 2)
    10 Sep 2012, 06:10 PM Reply Like
  • LoganSix
    , contributor
    Comments (641) | Send Message
     
    It doesn't matter if people don't believe they are being over charged. The point was, Apple has a high margin on their phones. If RIM were to build the exact same phone, they could compete on cost by offering it at a lower price. See Apple lawsuit against Samsung.

     

    Do you understand? RIM can compete on cost, IF they built the exact same phone. They currently do not build a phone with the same features (or hype) as Apple. When the BB10 phone comes out with the same (or more) features as the iPhone, RIM doesn't have to mark them up like Apple in order to compete on cost.
    11 Sep 2012, 08:38 AM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    Remember Apple is selling more than just a device it's the complete experience whether it's iTunes or iCloud. RIM relies on third parties for most of its content.
    How RIM differentiate itself from its competitors is critical for long term success.
    11 Sep 2012, 10:43 AM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    R I P RIM
    10 Sep 2012, 05:44 PM Reply Like
  • kherman
    , contributor
    Comments (836) | Send Message
     
    With the profit margins of companies like apple, I hardly think there os going to be a procing war.

     

    Oh, cutting down on shelf space. Another person that doesn't know what BB10 is.
    10 Sep 2012, 05:46 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    if you remove not you get the following:

     

    RIM can compete on cost, it can compete on user experience, it does have the range of devices offered on other ecosystems, it can compete on content and to date it has been able to compete on development talent,"
    10 Sep 2012, 05:53 PM Reply Like
  • GSlusher
    , contributor
    Comments (1279) | Send Message
     
    @bedrock65:

     

    Yes, if you remove "not," you get all those. If you remove "not" from the following sentence, "I am not a multi-billionaire," then I must be in the same league as Bill Gates. Saying so doesn't make it so.
    10 Sep 2012, 06:11 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    got to admit James Faucette is hilarious.
    10 Sep 2012, 07:21 PM Reply Like
  • Bouchart
    , contributor
    Comments (824) | Send Message
     
    http://bit.ly/QzvV88
    10 Sep 2012, 06:07 PM Reply Like
  • bedrock65
    , contributor
    Comments (637) | Send Message
     
    Priceless!
    10 Sep 2012, 07:24 PM Reply Like
  • alexwalker
    , contributor
    Comments (37) | Send Message
     
    Can't compete on user experience...Quite the statement before the release of a completely different system.
    10 Sep 2012, 06:22 PM Reply Like
  • Yokyok
    , contributor
    Comments (330) | Send Message
     
    ditto nokia
    10 Sep 2012, 10:15 PM Reply Like
  • retired and happy
    , contributor
    Comments (4) | Send Message
     
    Keep developing those useless Apps, so our youth can become stagnated and useless. Apple is up today, who knows tomorrow. At least Rimm provides something useful to man kind!
    Roman K
    10 Sep 2012, 11:11 PM Reply Like
  • newportironman
    , contributor
    Comments (5) | Send Message
     
    thank you! a bit of sanity in the "Kardashian"world as I'm prone to call it for want of a better explanation. BB10!
    11 Sep 2012, 04:13 PM Reply Like
  • Superfly_FR
    , contributor
    Comments (431) | Send Message
     
    BB10 OS will compete (and win), in particular on the "usability" front with any OS. Take it as the "next step OS", but you won't realize it until you get what paradigm resides behind the "flow" and "glance" concepts (Google is your friend). Verizon's Mc Adam stated it was too soon to count RIM out of the game and that it was not yet clear which system will win third place going forward. BB10 devices being distributed at launch by Vierzon (official) denotes he was serious.

     

    As for device prices and range, we do know that there will be six devices (name another manufacturer with a widest range ?). Presumingly, as RIM has done before, firsts will be flagships (London, Nevada) then medium and low price will show. Also, it is very likely we'll see a slider range (Milan ?) in addition to announced full touch and physical KWERTY. Again, name another manufacturer with such form factor choice ... (and don't forget to add BB6/7 devices that will continue to be distributed for years)

     

    Now for "talents" ... well, just try to register to any developer event worldwide ... you'll get a hint. It "sells" (it's free) like hotcakes.

     

    Yet, another piece of paper to encourage shorts. I call it blah or market manipulation.
    11 Sep 2012, 02:47 AM Reply Like
  • slickvguy
    , contributor
    Comments (498) | Send Message
     
    This site would be more accurately called SeekingBeta. It is a collection of viewpoints that represent the status quo. Rearview investing.

     

    Can somebody please publish the record on RIM of Pac Crest's James Faucette? Otherwise, his opinions are worthless. Show me that this analyst correctly called RIM et al over the past few years. Show me that he has made a few correct predictions, e.g. that he called Nokia's collapse, over the past few years and maybe I'll pay attention to what he has to say.

     

    This guy uses the word "cannot" in place of "has not". With BB10 being released, while it's true it's highly unlikely to dramatically change the current situation in NA, it is significant. His opinions are a)based on yesterday, and b)NA-centric. RIM is doing quite well in other areas of the world. Sure, margins are lower there, and they would be far better off if they were the darling of NA, but they still make money off of sales in those locations, and they still have many faithful and loyal customers that generate servicing fees each month. Thus, RIM certainly can and does compete in various ways and in various markets. No, they cannot bang heads directly with Apple and Google in their strongest markets. Duh. We all know that. So what?

     

    Also, this space is going to change dramatically over the next year or so. RIM will partner up or sell itself. This Apple/Android duopoly will not last for much longer. There will be big, important moves made by the global titans of tech. RIM will likely sell itself sometime next year, after a successful BB10 refresh. The bashing and negativity is meaningless. The question is: at $7/share, is RIM a good investment? I think the answer is: yes.
    11 Sep 2012, 04:02 AM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1877) | Send Message
     
    Sounds like somebody has a huge short position on Rimm and wants it less than 6.50$.
    Whether you like it or not some speculators are going to run the price up before the release of BB10. Why? Because they can.
    11 Sep 2012, 07:37 AM Reply Like
  • scott trader
    , contributor
    Comments (5719) | Send Message
     
    imo opinion rimm doesn;t want to release bb10 because it has viewed all other devices and know after the long waining release it knows it can't compete...
    13 Sep 2012, 12:37 PM Reply Like
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