This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

RIM Hopes Storm Clouds Are Clearing

The BlackBerry Storm has been a bit of a publicity disaster for Verizon (VZ - Get Report) and Research in Motion (RIMM), but a recent software fix may provide some salvation.

When the Storm hit shelves at Verizon stores last month, it came loaded with a treasure trove of software snags, which quickly sent critics overboard . The glitches marred the hotly anticipated debut of RIM's first touch-screen phone and slightly tarnished Verizon's reliability reputation, not to mention its best effort yet to answer AT&T's (T - Get Report) wildly popular Apple (AAPL - Get Report) iPhone.

Pay a visit to any Verizon store and you'll get a first-hand feel for some of the consumer dissatisfaction levels engendered by the turbulent Storm. The worst may have passed though. A recent software upgrade from RIM seems to have solved many of the problems -- like delayed screen-orientation shifts from portrait to landscape and seven-minute Web-page loading.

Still, return rates for the Storm have become a matter of debate and an issue of concern for investors. Some of the angrier Web sites have claimed nearly half are being returned, but one market research analyst says that's "too high."

A Verizon representative says "no company would continue to sell a product with return rates like that." The rep added that the return rates are in fact typical for new devices.

The bigger question perhaps is whether Storm sales will have an impact on RIM's current fiscal fourth-quarter numbers.

RIM reports fiscal third-quarter earnings after the market closes later today, and with its quarter ended last month, the Storm isn't likely to be a factor in the performance. RIM has already lowered its guidance. Analysts are expecting the company to post a profit of 83 cents a share, excluding special items. And sales for RIM's third quarter are expected to be $2.82 billion, according to Thomson Reuters.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.31 -0.48%
T $33.36 -0.10%
VZ $44.91 -0.62%
FB $105.49 -0.24%
GOOG $749.32 0.14%


Chart of I:DJI
DOW 17,841.52 +29.33 0.16%
S&P 500 2,091.81 +2.67 0.13%
NASDAQ 5,120.7740 +17.9660 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs