< Return to Bulls page

Expansion beyond core enterprise customer base is paying off

Research in Motion's efforts to expand beyond its core enterprise customer base are paying off. The introduction of its Pearl and Curve devices indicate the company's interest in tapping into the consumer market, where growth potential is substantial. These consumer-friendly devices have been successful; coinciding nicely with the release of the Pearl, RIM's total number of subscribers in FY2007 was up 63% over FY2006. The Curve's impact is not yet evident, but, considering the success of the Pearl and the Curve's plethora of features for both enterprise customers and consumers alike, it should further increase RIM's viability in the consumer smartphone market.

The reason? Anyone can get a Blackberry Pearl for $99 from almost all wireless carriers. In comparison, when the iPhone was released there were issues of it being too expensive and even though the iPhone is unique, but its features appear in many other devices at a fraction of the price. One can argue all day about the intricacies of those features and whose are better, but for the vast majority of people, those intricacies are irrelevant while price is not. In a slowing economy, people will choose price for a commodity like device.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.