10 ways Research In Motion could fall further

One analyst says the company is losing share opportunities to Apple and Google's Android platform.

By Kim Peterson Dec 9, 2011 1:33PM
Think Research In Motion (RIMM) has it bad now? Just wait.

Citigroup analyst Jim Suva lists 10 reasons the company could get even worse. Suva, who understandably has a "sell" rating on the stock, says he thinks RIM will probably start to guide more conservatively after missing expectations for the past few quarters. In fact, he added, he wouldn't be surprised if the company stopped giving full-year guidance completely.

Shares of the company have fallen more than 70% this year.

Here, courtesy of Forbes, is Suva's list of 10 reasons RIM could fall further:
  • RIMM is missing the Christmas shopping season, setting up risk of additional loss of consumer mind share.
  • There is potential for delays in the launch, initially scheduled for early 2012, of products with the company's new QNX operating system. Problems with QNX tablet security and native email lead to QNX phone delays.
  • RIMM cannot cancel its PlayBook tablet as the QNX language is the future of the company.
  • RIMM is missing much of the Nokia (NOK) share opportunity, while Apple (AAPL) and Android are grabbing this share.
  • Apple's iPhone 4S could pressure RIMM’s North America business. The phone is an improvement from Verizon's CDMA iPhone 4, which was not suited for traveling business users.
  • RIMM is losing carrier support in shelf space, promotion and eagerness for product certification.
  • Highly profitable monthly carrier subscriber fees to drop as North America for RIMM continues to go lower and network outages cause carriers to push back on these fees.
  • RIMM is going through a business restructuring and will reduce employee count at a time when we believe the company should be hiring to get product out on time.
  • Profit growth will decline year over year and RIMM’s sales growth will be less than half of the industry’s smartphone growth.
  • BYOD (bring your own device) and corporate sandboxing are only beginning and could severely impact RIMM’s subscriber base as many large corporations reassess their carrier data subscription plans on a annual basis. So this could start to be become a material challenge for RIMM in calendar 2012.


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