Analysts: "RIM’s Death Spiral" Hits the "Third Inning"
June 28, 2012 1:05 PM
comment(s) - last by
(Source: Business Development)
Trainwreck is expected to continue in coming quarters until company hits a fire sale; stock is at 9 yr. low
Research in Motion, Ltd. (
) has been circling the drain for some time now, between
falling market share
BlackBerry 10 platform
that's taken nearly two and a half years to bring to market, and
. Long profitable, the company posted its
first operating loss
in many years last quarter.
Now as RIM's earnings report nears, analysts are lining up to predict a bloodbath.
Wedge analyst Brian Blair is among the majority predicting a
forced fire sale
We see a steep drop off in revenues and units near term, punctuated by a drop in subscriber adds, and an OS refresh that is largely ignored by carriers and consumers alike, driving RIM into a forced sale in 2013.
This is going to be the third inning of RIM’s death spiral.
A year ago RIM earned $1.33 USD per share on revenue of $4.9B USD. This quarter it's expected to circle down to a loss of $0.03 USD per share on revenue of $3.1B USD.
As bad as the numbers may look for June it's expected to get much worse for the second quarter, which will be reported in August. Jefferies analyst Peter Misek told
All Things Digital
, "It’s going to be terrible with a scoop of worse for August."
Analyst predict more destruction for the Rimdenburg.
[Image Source: Jason Mick/DailyTech LLC]
no real viable product
on the smartphone market, RIM is expected to plummet further as it tries to
peddle its defunct BlackBerry 7 operating system
in the face of Samsung Electronics Comp., Ltd.'s (
blockbuster Galaxy S III
and Apple, Inc.'s (
sixth generation iPhone
In other words, as bad as it is now, it's likely to get far worse for RIM soon. Don't be surprised if RIM's
retreats back into their
Saturday morning cartoon fantasy
land amid this grim dose of reality.
All Things D
This article is over a month old, voting and posting comments is disabled
6/28/2012 5:11:26 PM
RIM just announced that the number of their subscribers reached almost 80 million this quarter.
You can now officially suck Thorsten (AKA retro) dick, "fucking moron" ((C) cheesy clown)
6/28/2012 5:24:01 PM
oh yeah... Things are looking really ggood now. Pirks was right. LOL
6/28/2012 5:34:32 PM
It's darkest before the dawn
6/28/2012 5:40:30 PM
It's also darkest before the end and a far more likely scenario. 30% layoffs is just trimming the fat pre-sale.
Whatever though, I am done trying to convince you. I will just say I told you so when its over.
"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki
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