Research in Motion: Strange Brew…

If Research In Motion’s annual BlackBerry World developers conference was to be the company’s attempt at a comeback, well, better luck next year. The company’s pre-announcement of a May quarter miss coupled with its exuberant guidance–some would say irrationally exuberant–for full-year profits of $7.50 per share had many observers and analysts expecting a slick new smartphone lineup and some decent insight into the evolution of its much-anticipated QNX “superphones.”

Instead, they were given the unveiling of the BlackBerry Bold 9900 and 9930, largely incremental upgrades to RIM’s dusty handset lineup, an update to the PlayBook OS that added features that really should have shipped with the device when it launched a few weeks ago, and QNX transition guidance that was at best hazy.

That was hardly what financial analysts were looking for.

“There were no clear indications of when QNX would finally arrive, and we believe the new moniker signals a longer-than-expected commitment to OS 7 before transitioning to a QNX-based platform,” said Jeffries analyst Peter Misek.

Over at UBS, Phillip Huang said he saw little to ease concerns about the company’s ability to regain the traction it’s lost in the smartphone market.

“Nothing we saw…gives us incremental conviction that anything changes fundamentally in the balance of power against Android and iOS,” Huang said. “In general, we believe, RIM’s fundamental challenge over the next few quarters will be executing flawlessly on the hardware, platform, and ecosystem shifts occurring.”

A daunting challenge, considering RIM’s execution has been so lacking recently. Apologizing for being late to the tablet market and acknowledging that the strategy that finally brought the company there could be improved doesn’t exactly bolster confidence in RIM’s ability to execute at all, let alone flawlessly.

At this point RIM management has very little credibility left. If it misses that $7.50 per-share full-year profit forecast–or is forced to step back from it before it does–it will have none at all.

Anonymous

“At this point RIM management has very little credibility left. If it misses that $7.50 per-share full-year profit forecast–or is forced to step back from it before it does–it will have none at all.”

Rimm will still have lots of INCREDIBILITY left if it misses $7.50.

Incredible that you you go from #1 in smart phones in 2008 to here in only 3 years.

Ayuh
Anonymous

it’s important to remember that the co-CEOs are not stupid people. They have built a very successful company. The problem is that they have become too successful to hear. Or rather that they only hear things which reinforce their own inclinations. A failure to evolve will result in their undoing. Competition is a good thing. I hope that they can turn things around.
http://profiles.google.com/bourdainster Anthony Bourdain

Rim has sold a 150 million phones and 15 million just in the last quater and they revenue is growing at 36% a year. I dont call that that bad. I will buy RIM all day long at $45 a share with the same PE ratio that Apple sells at RIM should trade at over $120 a share
http://profiles.google.com/pfezziwig Charlie Fezziwig

Seems the more money RIMM makes the worse their stock does. Is anyone in New York and the mainatream media capable of mentioning RIMM without Apple in the same sentence, as if Apple is an Enterprise level smart phone, give me a break?
http://profiles.google.com/pfezziwig Charlie Fezziwig

Seems the more money RIMM makes the worse their stock does. Is anyone in New York and the mainatream media capable of mentioning RIMM without Apple in the same sentence, as if Apple is an Enterprise level smart phone, give me a break?
http://pulse.yahoo.com/_TEH4ECJTUDPXN7EOZH24ZX5ZTM Peas4$

I understand the criticisms towards RIM, but what people find hard to understand is this transition to a different OS. RIM is known for its security features on the BB smartphone. I have even heard some say give up and jump to the Android OS. What a huge downgrade that would be IMO. This security is ingrained in the current OS. The Apple OS can be hacked into in less than 30 seconds and to the average consumer who cares right? So the Playbook operating as a completely separate device can run the NEW QNX OS which I would say is not as secure as the original BB OS. All data is stored on the BB smartphone and as a tethered device it allows for some of the bells a whistles the players would like to have. Playbook APPs are being added to daily and easily accessable by any that want them. Until the QNX software is proven to be as secure and as reliable as the original BB OS I think these upgrades have been tremendous achievment for BB OS creators and programers with no compromise to the security features. These new phones look great IMO and for some number crunching analyst to critisize what is happening have no idea what they are talking about. One thing RIM has ALWAYS said they will never sacrifice the quality and security of the BB smartphone and for that I believe them. Is RIM dead….Far from it.

Research in Motion: Strange Brew…

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