RIM Outlook Not So Grim
Research In Motion's (RIMM) BlackBerry sales are running at a better clip than Wall Street may be fearing, according to one analyst.
After studying data from distributors and resellers, RBC analyst Mike Abramsky says there's been "resilient demand" for RIM phones, including Verizon's (VZ) Storm and the Curve.
For the quarter ending in May, Abramsky estimates that RIM will ship 8 million phones, which would be a 6% sequential increase over his 7.57 million estimate for the prior quarter. The more pessimistic analysts' consensus calls for no increase.
The sunnier RIM forecast coincides with the Wednesday release of Gartner's fourth-quarter 2008 smartphone market share report showing No. 1 Nokia (NOK) sliding fast at the hands of rivals including RIM and Apple (AAPL). Nokia's smartphone sales fell 17% in the fourth quarter, pushing its total share of the market down to 40.8% from 50.9%.Investors have taken a suddenly cautious view of RIM after the company reported last month a startling decline in its gross margins. The news helped confirm suspicions that RIM was moving painfully out of its lucrative business services niche and into the brutal consumer market with its higher costs and lower profits. RIM shares have fallen 32% in the past month. In pre-market trading Wednesday, RIM was up 80 cents, or 2%, to $39.76.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV