Last week Research in Motion reported a less than stellar Q2 Fiscal 2010 and their stock price took pretty big stumble. Just last Wednesday RIM’s stock price (ticker RIMM) was up over $85. This morning it sits at $67.10.
I am not an investment professional nor do I offer any financial advise. I do wonder, however, with all the new BlackBerry devices about to hit the market, with OS 5 seemingly right around the corner, with the reduced prices on the high end prosumer devices and especially the lower end consumer devices, is Research in Motion ready for a run?
A lot of folks are saying that RIMs problems are all due to the iPhone. Although I agree that the iPhone has definitely made it’s mark on RIM, their biggest issue, in my opinion, is that they aren’t getting the new low end sub $150 devices onto the carriers with the most subscribers quickly enough.
What would RIM’s quarter have looked like if the BlackBerry 8520 also came out on AT&T and the 8530 on Verizon and Sprint? The days of dumb phones is all but over. Everyone now wants devices with keyboards that they can get to the web and easily check email on, but, not everyone is willing to shell out $200 – $400 for higher end smartphones.
BlackBerry devices enjoy exceptional user loyalty, so, if RIM is able to capture first time smart-phone buyers in the sub $150 market, they may be able to keep them as they upgrade to higher end devices in the future. There is no doubt that the iPhone is the biggest competitor to the BlackBerry here in the States, but, the iPhone is still exclusive to AT&T and the device is expensive. If RIM can seed all the carriers with inexpensive BlackBerry models by the time the holiday season gets kicked fully into gear, Q3 Fiscal 2010 may be a lot better than Q2.
That’s my opinion… What is yours…