Research In Motion ( RIMM) got crowned with a downgrade Wednesday as the BlackBerry smartphone enters the consumer market.JPMorgan analyst Ehud Gelblum welcomed RIM to the big league with a hard look at the challenges it faces outside the corporate email niche. As it pushes into the broader market, RIM must deal with a new set of competitive pressures, or, as Gelblum writes, "levels more representative of a worldclass handset vendor." Three takeaways from the report:
Another macro trend working against RIM is that wireless growth rates have peaked. "While subscribers should continue to grow, we believe the rate of growth of subscribers should slow considerably over the next 18 months," Gelblum wrote in his note. In an aside, Gelblum said his predictions are colored by an outlook that calls for higher unemployment levels and no real economic recovery for more than a year. Market optimists, however, have already pushed stocks up from multi-year lows under the belief that a rebound is around the corner. RIM shares were down $1.27, or 3%, to $42.96 in mid-day trading Wednesday.