Could RIM go same way as Motorola?
Research In Motion’s lower than expected revenues of $3.53 billion verses $3.62 billion expected, and at the lower end of the range for new subscribers disappointed investors reports an article on Forbes.
Revenue guidance for the following quarter was lower than expected although earning a share reported for both the 2nd quarter and guided 3rd quarter exceeded expectations.
The day before earnings, Research In Motion traded at $87.44 and closed at $83.06 before earnings were released and refracted to 23 percent or $67.55 since the earnings were announced.
Management have discussed their strategy to sell more units to follow up later with service offerings, and have guided to improve gross margin along with price cuts for BlackBerry smartphones which signals a shift away from the high end to the mid range segment within the smartphone market.
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2 thoughts on “Could RIM go same way as Motorola?”
RIMM revenues were up 37% year over year. Excluding the patent charge, earnings BEAT expectations. RIMM sells for the market multiple of trailing earnings–do you really think RIMM is going to do more poorly than the average large company? You keep writing unsubstantiated, irresponsible articles like this one, and I will continue building a position.
How could any company be as bad as Motorola. A few years back having the top-selling RAZR and then let the whole division come crashing to the ground thinking they could keep milking the RAZR for years to come. Didn’t even bother to come up with another cellphone except a RAZR 2. Motorola had it all and just threw it away due to bad and greedy management. RIM has got bunches of phones of all different models. They tried to keep their BlackBerrys locked into business with good qualities of security and email, but they just didn’t see the future changing. Only Apple did. Apple caught the whole cellphone industry napping. RIM can’t be blamed for that. They’re trying to change.
Motorola did nothing except throw money away on acquisition after acquisition and none of them panned out and now they have nothing. No business cellphones and no consumer cellphones worth noting and only consumer cellphones can get their share price back up. RIM might lose market share, but it won’t be a total collapse like Motorola. And those Motorola management bastards were lying to investors, telling them they had innovative cellphones in the pipeline when in fact they had nothing.