We Sense A Trend
Via the Globe and Mail:
Everybody knows that RIM is in a tough spot. The company’s market share has collapsed, and with a withered market capitalization of less than $4-billion, takeover rumours are rife.
Ahead of the January launch of BlackBerry 10, RIM has little to do but focus its weary workforce on perfecting the new phones, slash costs and lean on the growth RIM is seeing in fast-paced emerging markets. The company could update investors on the results of a strategic review conducted with help from investment banks, but analysts are not anticipating a sale any time soon, or a radical new course of action beyond trying to license the new BlackBerry 10 operating system to other handset makers…
…Mike Walkley, an analyst with Canaccord Genuity who is bearish on RIM, said his research indicates that cheaper BlackBerrys are still selling well in markets such as Indonesia and the Middle East, but that RIM’s higher-end Bold and Torch models are faring poorly. Indeed, low-margin growth in international markets may be the only high point left for RIM these days, despite increased pressure in these markets from Chinese manufacturers such as Huawei Technologies selling cheap Android devices.
Images: Research in Motion’s US subscriber base (top), via Pingdom. RIM’s share price for the last two years (bottom), via MarketWatch.