Competitive Pressure Expected for RIM BlackBerry

5:15 am on January 12, 2006 | Category: Business, Mobile Devices

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Research in Motion shares dropped 2.3% on the NASDAQ Tuesday, amid analysts’ doubts that the company could defend against new competition for the popular BlackBerry email device.

In a research note, Credit Suisse First Boston analyst Michael Ounjian voiced expectations that the market for the RIM BlackBerry to increase over the coming years, but that competition would also increase as the company’s business model becomes “increasingly attractive” to competitors.

“We continue to expect improving devices to be launched by leading handset vendors in the next few months, including the Motorola Q, Nokia E-series and (Palm’s) Treo 700w,” wrote Ounjian. “As these devices begin to ramp, we continue to expect pressure on Research In Motion’s device pricing — or on subscriber growth — to become more apparent.”

Ounjian also predicted a very volatile stock price for RIM, until their patent dispute with NTP is resolved as early next month. At this point, RIM is most likely looking at a positive outcome to these disputes.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock