RBC calls RIM earnings a ‘tale of two cities’

By on Mar 25, 2011 at 3:01 PM
mobile March 25, 2011

In a note to investors on Friday, RBC Capital Markets Managing Director Mike Abramsky attempts to put Research In Motion’s fourth-quarter earnings and first-quarter guidance in perspective. RIM reported its fourth-quarter and full-year earnings after the bell on Thursday and shares of RIM stock subsequently plummeted by as much as 12% in after hours trading. Most of the concern seemed to surround RIM’s guidance for the first-quarter of its 2012 fiscal year. Abramsky points out that while investors may be concerned by RIM’s guidance, it likely reflects product transitions rather than intensifying competition. He notes that new product launches and future support for Android applications will help restore confidence in RIM moving forward. While RBC does identify several possible barrier such as a general decline in technology valuations, unknown market acceptance of new products and declining average selling prices of BlackBerry smartphones, the firm reiterates its $90 price target for RIM stock.

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  • Anonymous

    “Most of the concern seemed to surround RIM’s guidance for the first-quarter of its 2012 fiscal yea.” Might wanna fix that.

    • BoLdBuRry

      oHhhHhH YeEeEEeEEee JiGgA jIggA BlaCkBuRryzZzz Wit DaT seXy **QNX** ganNa TaKe Ova Da wOrLD SON!!!!11

      aaaaaaaaaaaaaahhhh yeeEeEEeeeEe hit me on my bLaCk burry,,,,,,,,,,
      mah black burry burry
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      yeh uhh uhh yeah uhh uhh you so nice black burry

      uhh yeah

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      uhh yeah hit me on mah black burry, mah black burry burry

      • Garret Wilkinson

        Wow, can we ban people for lack of grammar and overall common sense? Yeeeesh lol.

        However, I hope that rim does find a way to turn around its own decline. I unfortunately have left the blackberry devices and don’t have plans on heading back anytime soon unless my employer forces me to do so. I got my hands on a Galaxy S Vibrant and overall speed, performance and features are just to good to pass up just for BBM. Only way they’ll get my back is once QNX hits their handsets, however, I wont argue blackberry’s have their uses and are still the best for email, and physical keyboards. Good luck RIM!! (That wasn’t sarcasm haha)

    • Anonymous

      There’s nothing to fix. RIM is in fiscal 2012.

  • Anonymous

    “Most of the concern seemed to surround RIM’s guidance for the first-quarter of its 2012 fiscal yea.” Might wanna fix that.

  • QNX Please

    $90 target price and its trading below $60… thats 50% under-value. I guess investors or nervous about RIM’s transition from BBOS to QNX and how well it will be accepted. The Playbook will sell well in the corporate world, not sure about consumer market, I doubt it will have iPad like sales unless the Playbooks market version really wows the reviewers, the reviews so far have been on pre-release, none dual core versions. But we already know what BGR’s review will be, critical on everything and complaining it isn’t Apple.

    • http://twitter.com/a1by Alberto Plantilla

      I doubt anything will have iPad like sales in 2011. In spite of a flux of competition for tablets, iPad continues to dominate the US media.

      • QNX Please

        True, the iPad and iPhone have almost become a category name, like Kleenex. For instance many many companies actively announce they have iPad or iPhone apps, when also releasing the same apps for BlackBerry and Android, even though the iPhone only encompasses 25% of the smartphone market. How often do you hear companies advertising their new Android app? Even though Android phones own the market now?

      • Math Wiz

        Android phones may have a larger market share, but the app store sales and downloads dwarfs all others combined. That’s why apps are developed for the iphone first.

      • Qnx

        BlackBerry actually has more brand recognition than Apple does, believe it or not.

      • Tim242

        Not many consumers are buying ipads. 15 million were sold worldwide in 2010…mostly to corporations.

      • Anonymous

        Yeah based on the iPad 2 lines, I’m sure consumers ignored the original iPad, while those hasty, quick-to-adopt-Apple-tech corporations jumped right on it.

        Honestly, that’s one of the silliest comments I’ve read in a while. Get a clue.

      • Tim242

        So, the Plaza hotel in New York putting an ipad in every room isn’t proof
        enough for you…they are not the only corporation buying those in bulk.

      • Michael Scrip

        The Plaza Hotel in New York only has 434 rooms and condo units.

        Apple sold 15,000,000 iPads last year.

        Even if Holiday Inn, the world’s largest hotel chain, put an iPad in every room… that would still only be 238,440 iPads. But they didn’t.

        You’re the only person I’ve ever heard say “corporations are buying more iPads than consumers”

        Any actual proof?

        Hell, you’re the type of guy who would say the iPad is a toy… so why would corporations buy them?

      • Tim242

        15,000,000 worldwide…that is a very small number. It is a fact that
        corporations bought them in bulk. The point is, tablets are an item most
        people do not see a need for. One brand of smartphone, the Galaxy S series,
        sold more than that. The tablet market is not what these companies think it
        is. They will figure that out soon enough.

      • Anonymous

        LMAO!! Tim u are still out here trying to claim iPad sales were all corporate sales??!!! God u r a dumb fuck.

      • Tim242

        15,000,000 worldwide. That is a small number…and it is a fact corporations
        bought a lot of them in bulk.

      • Anonymous

        Show me the figures. U claim it’s a fact show me some numbers. And
        even if it was true. Explain to me what the fuck a company is doing
        with a 5-800 dollar device?? U claim it’s a useless item. But clearly
        if 90% of the 15 million ipads were or corporate use then what are
        they doing with them?? And don’t give me that fucken giving them away
        as gifts bullshit. A few thousand were given away. Not 13 million. The
        shit u say is so messed I wonder if u are possibly a retard?

      • Tim242

        15,000,000 worldwide…not a very high number. Corporations are using them
        to replace laptops when possible for portability reasons. Google is your
        friend. Look it up.

      • Anonymous

        I’m not gonna waste my time looking for some bullshit fake number.
        What do u make of the lineups for iPad 2?? Fake? Or did corporations
        pay random people to line up to buy them an iPad? Did apple refuse to
        sell ipad 2′s to corporations in bulk this time?? Do u really believe
        the fucken crap that comes out of your mouth? Seriously man. Do u have
        ANY common sense? U want a little math? iPad costs approximately 350
        bucks to make. Sells for 500-850. Depending on model. So let’s say
        conservative average of 600. So 600-350= 250 x 15,000,000=
        3,750,000,000 that’s 3.75 BILLION. that’s profit. So I don’t give a
        crap if u think 15 mill is a small number. Ur dick is small. Only
        person who cares is ur boyfriend.

      • Tim242

        You are wound so tight. Relax. Don’t have a stroke over something so not
        worth it. About the lines: It’s like the Verizon iphone. It broke a first
        day presales record. Then on launch day, no lines. The people that wanted
        them, got them quick. Simple, really. Now, take a deep breath. Go for a
        walk. Relax. It’s not that serious : )

      • Anonymous

        Lmao. Sure pal. That’s ur standard line when u got no answer when u
        get called on that crap u spew. Go fuck yourself.

      • Tim242

        What are you, 12? You must live a pathetic life. Does it make you feel all
        macho to talk like that? Seriously, you have issues.

      • Anonymous

        HAHA. only one with issues is u. Seriously. Post just ONE link to an
        article or survey that says iPad sales were 90% corporate and I will
        shut up. You can’t can u?? LMFAO!! fucken moron

      • Tim242

        If I could post a link, I would. Let me let you in on a secret. Bgr doesn’t
        allow links. Don’t believe me? Try it. Keep it up. People like you do not
        get under my skin : )

      • Anonymous

        Lol. Yeah sure. Then type it out. Without the www or dot com. U can’t
        cuz it don’t exist. Does it bother u that a 12 year old is smarter
        than u? BAAAHAHAHAHH a three year old is smarter than you.

      • Tim242

        You think I’m going to type that out for you? Google is your
        friend…Judging by your attitude, probably your only friend. Steve Jobs
        couldn’t care less about you. Sorry to be the one to have to break that to
        you.

      • Anonymous

        Lol. Yeah. Nice try. U are willing to type out a response to me over
        and over but u won’t type one out that will shut me up. Too funny.
        Again u just can’t see how fucken stupid the shit u say is. What a
        dumbass.

      • Tim242

        Nothing will shut you up, you’re one of those people that likes to heae
        yourself talk, and type bs. I’m going to do us both a favor and stop
        responding to you. You made one great point…responding to you is a waste
        of my time. Have a good one. PS: Take your meds.

      • Anonymous

        MUUUAHAHAHAHA I WIN!! ALL WHO READ THIS WILL KNOW!!!! TIM IS A
        MORON!!!! SCROAT IS GOD!!!

      • Michael Scrip

        – “and it is a fact corporations bought a lot of them in bulk.”

        Well… facts aren’t facts just because you say they are. Show us some proof!

        We all read the same tech blogs… wouldn’t corporations buying millions of iPads in bulk make the news?

        I’ve heard of some school buying iPads… but not by the millions.

        So please… show us some proof that corporations bought 8 million iPads last year and consumers only bought 7 million.

        I’m curious to see this…

      • Tim242

        Many schools purchased them. That would be the biggest buyer. Google is your
        friend, look it up. As you should know, links aren’t allowed on bgr.

      • Michael Scrip

        I just find it hard to believe that cash-strapped schools are buying more iPads than consumers… when there are 300 Apple Stores, 1,100 Best Buys, 1,700 targets, and 8500 Wal-Marts…

        Plus… if more schools and corporations have iPads… that means they are even more locked down than the iPad you have at home.

        How are there so many iPad apps being downloaded? Are people downloading all these apps at school and work?

      • Tim242

        My neice’s school just purchased 2,000 of them. And yes, they do download
        apps.

      • Michael Scrip

        If schools purchased 8,000,000 iPads last year… wouldn’t Apple wanna brag about that at their keynote?

        I’m just puzzled because that seems like a big deal… yet many of us here have never heard about it.

      • Anonymous

        TIM IS A MORON!!!! hahahaahhhahahahah

      • numetheus

        This is officially the most retarded statement I have heard all day today. It’s like someone arguing the fact Forrest Gump sold a ton of cows with Dane.

      • Michael Scrip

        – “15,000,000 worldwide… that is a very small number.”

        Don’t forget… no other company sold 15 million tablets last year. Oh, you’ll say “there weren’t any other tablets back then”

        OK fine… why not? What was Google workin’ on the day before the first iPad was announced 14 months ago?

        – “One brand of smartphone, the Galaxy S series, sold more than that.”

        Cool… let’s compare cell phones to tablets…. that makes sense.

      • Tim242

        The point is, tablets are pointless and stupid. There is only a small market
        for them. Let’s not forget, when it’s pointed out that Android is the top
        OS, you iFans try to bring in tablets and ipods, when the discussion is
        about phones.

      • Michael Scrip

        – “tablets are pointless and stupid. There is only a small market for them.”

        Is that why every major manufacturer is pumping out tablets this year?

        It may be a small market (compared to what?) but it’s not stopping every company from wanting a piece of that action.

        Ask Google if tablets are stupid… then follow up with a question about why they made Honeycomb.

        – “you iFans try to bring in tablets and ipods, when the discussion is about phones”

        So… you counter by exhibiting the same behavior?

        Way to rise above…

      • Anonymous

        FUCKEN MORON LOL.

      • Anonymous

        Hi asshole!!!!! Lol.

    • LOLRIM

      Dear RIM Employee,

      Please STFU already.

      If you want “QNX Please” then download it @ qnx website since it’s already 20+ years old.

      Consider changing your name to “Android on QNX Please” as that seems to be the new direction of the company you work for.

      Thanks,
      BGR Reader.

    • Math Wiz

      Actually try 30%

    • Kallisen

      NOBODY is going to have ipad sales; the ipad was a game changer, totally new gotta-have-it application and the market all to itself for over a year.

      On the other hand, the appetite for tablets that Apple created is now ravenous and about to be satiated by a host of worthy and not-so-worthy competitors. ipad2 (yawn) did little to secure ipads dominant position – and other competitors offer a mixed bag of pretty good technicals and higher than ipad price or not so good technicals and equal to/comparable to ipad price.

      The market has not yet seen a better than ipad at comparable price offering. Not until April 19th. Pre-sales to enterprise will demonstrate that RIM was smart to play to this strength – I don’t see Apple or anyone else taking a huge bite out of this piece, despite repeated vague assertions from analysts that “Apple is making strides in the corporate environment” there isn’t a lot of proof backing up the bluster.

  • QNX Please

    $90 target price and its trading below $60… thats 50% under-value. I guess investors or nervous about RIM’s transition from BBOS to QNX and how well it will be accepted. The Playbook will sell well in the corporate world, not sure about consumer market, I doubt it will have iPad like sales unless the Playbooks market version really wows the reviewers, the reviews so far have been on pre-release, none dual core versions. But we already know what BGR’s review will be, critical on everything and complaining it isn’t Apple.

  • Anonymous

    Don’t need an Ipad hit… just 10% of the market would be incredible for RIM and it stock.

  • max

    I’m sooooooooo shorting this bitch. So so shorting it. I love taking $$$ from BB Morons. Hey they’re satisfied with the curve for 10 years. Hard to feel for them.

    • RI

      yeah i bet you are a large investor/hedge fund manager who has the capability to short a stock. what is your AUM? probably a few billion hey?

      • Generatione

        Dude anyone can short a stock. Buy a put option on Etrade and done.

      • Tony

        seriously….if he was some sort of hedge fund manager, or really in any type of a management position he’d probably have a BlackBerry.

    • Anonymous

      I really really hope you do short RIMM. There is very little doubt that it will gain over then next 2-3 years at least. People like you don’t think about the big picture and how well RIM is doing, how well they have integrated themselves into corportations and governments, and how well they have planned for the future. RIM’d outlook is brighter than it’s been since 2006-2007. Please Short RIMM so we can watch you melt even more about how much you hate RIM.

  • Generatione

    Down with RIM. Burn baby burn!

  • Anonymous

    QNX. The new destroyer. Taking over. Run everyone. Run. Blackberry will become dominate again. LIKE this if you know this will never happen!! lmfao!!!

  • http://infinus.myopenid.com/ infinus

    rim took almost 6 months to launch playbook..
    they are very fast…

  • Qnx

    The funny part is, all you apple fanboys, with RIMs “ancient” devices, it still took how many years for Apple to outsell them? The tides will turn once updated hardware, OS 6.1, and QNX come to the phones.

  • More

    Of course BGR would find and post this…………..

  • Anonymous

    RIM has perhaps 18 months left as a major player in the North American market, dead last in the JD Powers satisfaction ratings this month, no compelling phones, hanging it’s fortunes on a new, unproven OS that’s never been applied to a mobile solution, pricing a 7″ tablet the same as a 10″ iPad, no apps to speak of, corporate adoption of the iPhone and Android OS’d phones/devices at record highs, and CEO’s that are too single minded to pay attention to changing consumer preferences.

    Make no mistake, I think RIM was amazing to essentially turn a pager OS into a phone OS, and grow their company into a corporate icon, but when the iPhone came out, their blinders were firmly in place and they couldn’t see the future of mobile devices, they see now, but they simply don’t have the comprehension of what it takes to compete.

    BGR is the only RIM cheerleader I know of, everyone else, including hedge fund managers are ready to take RIM dows like an old whore…

    • Rtc1169

      I mostly agree, RIM is the next Palm, they haven’t innovated in a long time (referring to their phones). This is coming from a person who has been a loyal Blackberry user for many years. Most of my professional friends use to carry a blackberry for work and an iPhone for pleasure. Now it is just an iPhone. (if security permits). And if they don’t like AT&T, then they have a Motorola Droid X on Verizon.

      RIM will never see $90 a share unless they innovate.

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