RIM is fast fading due to complacency and lack of innovation. Apple has the biggest market share for smart phones and is still growing, this paired with the highest consumer satisfaction rating at 82% (as of 2011), RIM at 51% and fading. RIM WAS well positioned in the institutional and corporate arena, but the iPhone is taking over, as well as the more cost efficient and powerful Android platform. RIM cannot compete with Samsung APPL and MOT. (nor can NOK)
Research in Motion is a great company that offers a great product. The BlackBerry is one of the best wireless e-mail devices on the market, the product of years of fine-tuning and tweaking based on the feedback of a very demanding group of customers. Despite this, of all the smartphones shipped in Q3 2006, just 2.8% ran the BlackBerry operating system (which, as the name implies, is the standard operating system for all new BlackBerry handsets). RIM leads the competition in some markets, but the overall picture shows that it controls a relatively small portion of the total smartphone market. The situation is somewhat reminiscent of the Windows/Macintosh dichotomy. Much like Apple's fiercely loyal customer base in the PC market, RIM's BlackBerry devices have developed a devoted following in the smartphone industry. The case could be made that the BlackBerry is a better product and that quality will win out when all's said and done. Mac enthusiasts have been making the same car for years, but Apple's share of the PC market, though it has been rising recently, still comes in at around 3% worldwide, with Windows accounting for the vast majority of the remaining 97%.
Is RIMM forming the pattern of death?
Research in Motion appears to be forming the “pattern of death” and it could get especially ugly for this stock if the overall market doesn’t break out of its downtrend soon. Chart patterns like the one RIMM is forming are reminiscent of August/September 2008 just before the slide.
Why does the RIMM chart look so bad?
The old support levels broke severely and those levels have now turned into a wall of resistance. RIMM not only gapped through its old support but after giving us a weak, dead cat bounce, it was smacked right back down without much of a struggle. When the sellers are lined up at old support levels turning them into new resistance levels, this tells us the bears have a firm grip on this stock.
RIMM will most likely test its old lows again at $47 and doesn’t really have much support again until it reaches the $37 level again.
For those interested in shorting RIMM our first profit target would be at $47 with a stop around the $58 level. The overall market is hitting even heavier resistance and if it continues its expected slide and tests the July lows, stocks with bearish patterns like RIMM will get the worst of it and should easily slice through their near term lows.
"Ahead of the bell this morning, the shares of Research In Motion Limited (RIMM: View sentiment for RIMMsentiment, chart, options) were slapped with a spell of skepticism from analysts. More specifically, Societe Generale started the stock with a "sell" rating and a price target of $34, citing a potential slowdown in the handset market."
Increasing competition in the smartphone market could be detrimental to RIM. Nokia, Motorola, and Palm have been upping their offerings of smartphones, and Apple's iPhone could stiffen competition in the already cutthroat market. Unlike many of its competitors, RIM is almost entirely dedicated to the smartphone industry, offering devices, software, and services. As such, it's much more exposed to increased competition than much of the competition.
Apple has announced that the IPhone could host Microsoft exchange software which would bring in the corporate clients that RIMM holds as an competitive edge as of now.
Rimm has acknowledged that BB6 is slow and outdated, so why no talk of a new operating system? Developers are not going to invest their time in old technology when Apple and Android are making APP's generate big Revenue.
Rimm missed the boat on acquiring Palm, and QNX in the next 12 months for mobile devices is a DREAM!
Rimm cannot advertise their way to continued growth.
Gone, joining another company that doesn't listen well to customers and New Markets, unless they design/control them/
The WiMax vs W-CDMA battle could impact RIM. So far, only one BlackBerry offers either of the two technologies, with the 8700 series offering W-CDMA compatibility for certain models. If RIM continues to implement W-CDMA technology in its devices, the success of WiMax at becoming the next industry standard would be a strong blow to the company.
Microsoft now includes wireless e-mail software with its Windows Mobile operating system, giving users the ability to sync with Windows servers without purchasing extra software. Given the ubiquity of Microsoft software on PCs, this could directly (and effectively) compete with RIM's BlackBerry Internet Service (BIS).