RIM, Motorola won’t benefit from coming smartphone boom, analyst claims

By on Jun 21, 2011 at 3:56 PM
mobile June 21, 2011

Smartphone sales will continue to surge in 2011 and through 2012, but RIM and Motorola won’t reap the benefits according to Credit Suisse analyst Kulbinder Garcha. Apple, Samsung and HTC will be the big winners as global smartphone sales grow by a whopping 62% in 2011 to 482 million units. In 2012, Garcha sees the market growing 36% further to 656 million units. Despite the impending boom, the analyst cut his rating on RIM from Neutral from Outperform, and he sliced his target on shares of RIM stock from $70 to $30. Motorola faired even worse in Garcha’s note as he cut his rating from Outperform to Underperform and lowered his target from $31 to $19. Why do Apple, Samsung and HTC stand to be the big winners over the next 18 months? According to Garcha, they come out on top when measured by the analyst’s nine key metrics: software, services, cloud, product, brand, distribution, tablet convergence, IPR, and chipset efficiency.

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27 Comments

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  • Vinny

    What kind of metric is “cloud” supposed to be?

    • Anonymous

      The whole thing just seems like a bunch of hot air.  Another “analyst” who knows nothing.

      • Anonymous

        Considering as of yesterday his target for RIM was still $70, what does that tell you?

      • Anonymous

        *yawn* another fail analyst article which proves s***

      • Anonymous

        *yawn* another fail analyst article which proves s***

      • http://twitter.com/gragib G Ragib

        I thought cloud == services.

      • SJones

        You guys really have no idea how the world works. It’s very funny to watch, though a bit sad too.

        Why do you think WSJ, Barron’s, etc etc etc constantly report on analyst notes? Why do you think BGR does too as of a few months ago when they seem to have elevated themselves a tad above nonsense like Engadget and other useless blogs?

        Do some thinking. These analysts feed investors and investors power the market. This isn’t a stupid little Android phone that will come and go… These are the people who dictate where the market goes.

        Try to educate yourself on matters before you run your mouth and look like an idiot, even if it’s anonymously in the comments section of a website.

      • No

        > These are the people who dictate where the market goes.

        Bullshit. If they had a clue they’d run there own fund not be an ‘analyst’ . You’re half right though, at best these are charlatans trying to make a quick buck shorting stocks, etc.

    • Anonymous

      A fluffy one….

  • Max

    i am going to short RIM daily. Making money off tech mental midgets makes me happy.

    • Anonymous

      too late everyone and their cousin knows RIM is going south. I don’t care how much money they have in the bank, they have been mismanaged for the last few years and employees are going to be jumping ship asap. And I use a BB daily for the past 4 years+, and have an iPad and iPhone.

    • Perspective Penis

      Dude, if you can even come close to explaining to me how an actual short works in the market I swear to god, I will make honest and true sweet love to you. Do you want to know who shorts stocks? Motherfucking investment bankers who know what theyre doing. Not little horny BGR trolls that talk about market caps and think because they read a blog headline they know how markets function. If you actually are an investor (which I doubt oh so strongly) then by all means, short the stock. Nevermind the fact that acquisition talk generally drives UP the stock of the company to potentially be acquired. Also nevermind the fact that in a number of instances shareholders like layoffs, because it means less overhead and the company is trying to save money. I know people like to pretend to be someone else in comments/blogs, but at least try to do a better job of not looking like a fucking n00b.

      • Max

        Just STFU you RIMjobber.

      • Perspective Penis

        pwned

  • http://pulse.yahoo.com/_GP2WYAHXS6CRUREISWBGPUSUGE Michael

    Wait, why are those women holding phones…. And if they are hold phones who is making my sammichs?

    • Starbuck

      hope your hubby makes your dinner

  • Anonymous

    I bet if you short AAPL here at 325 and buy RIMM here at 28.55 you make money on both trades over 3 months, 12 months. Wall Street analysts are always amusing.  RIMM is down from 90 to 28… so NOW it is a “sell”.  Let me cut mt target from $70 to $30.  Yep, that works.  

    • Scott

      And yet people wonder why the whole world is going down the crapper.

  • Anonymous

    This analyst is wrong, R.I.M. stock should be ‘sliced’ to .05¢.

    And, what’s up with the same two Samsung hoes’;
    fresh meat, please?

    • Idroid Vzw

      I take on both of em after they make my sammich abs bring me a beer.

  • Starbuck

     why use ” I ” in any anonymous comments?  no body cares about your opinions

  • Anonymous

    And Motorola will miss the boom bc of MotoBlur and locked bootloaders.

    • Anonymous

      And the Atrix looks and feels like a child’s toy…

  • BCW

    Complete Garbage! Cloud as a metric? Pffff…

  • Anonymous

    As long as Google is the ONLY company to benefit, I am ok with it…  

  • J Dub

    All I know is that Moto would be in much better shape if they would have just followed the way of the D1. Vanilla Android on dope hardware that is easy to develop for. Not all these bloated with stupid apps, Blur, and locked bootloaders phones. I feel like the development team got the D1 right and Moto was so bad they gave it a shot. It was a hit then the dope head high-ups saw dollar signs and got their stupid know nothing butts involved.

  • thatkidfromapp

    Motorola is due for another downward spiral…I’m sure we all can remember the days of the motorola razr/crazr/rockr…it was only a matter of time before the motorola droid line suffered the same faith as its predecessors…

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