Citigroup analyst Jim Suva with some holiday cheer for Research in Motion:
10 Reasons Why We Feel Things Can Get Worse
1) RIMM is missing the Christmas shopping season setting up risk of additional loss of consumer mindshare.
2) Potential for delays in its QNX product launch initially scheduled for early CY2012 as problems with QNX tablet security & native email leads to QNX phone delays.
3) RIMM cannot cancel its Playbook program as the QNX language is the future of the company which developers & enterprises need to work with.
4) RIMM is missing much of the Nokia share opportunity while Apple and Android are grabbing this share.
5) New iPhone 4S recently launched to pressure RIMM’s North America business as Verizon’s CDMA iPhone 4 was not suited for traveling business users,
6) RIMM is losing carrier support in shelf space, promotion, eagerness for product certification,
7) Highly profitable monthly carrier subscriber fees to go lower as North America for RIMM continues to go lower & network outages cause carriers to push back on these fees.
8) RIMM is going through a business realignment (restructuring) & will reduce employee count at a time when we believe the company should be hiring to get product out on time versus delays.
9) EPS growth will decline year over year & RIMM’s sales growth will be less than half of the industry’s smart phone growth.
10) BYOD (bring your own device) & corporate sandboxing are only beginning & could severely impact RIMM’s subscriber base as many large corporations reassess their carrier data subscription plans on a annual basis so this cold start to be become a material challenge for RIMM in CY2012.
Author : Jay Yarow
