Is RIM’s Future Looking Bleaker?
Research in Motion’s (NASDAQ:RIMM) newest operating system update is not due until January 30, yet some analysts are already cutting their ratings on the company’s stock. Despite the stock’s recent gains, Canaccord Genuity analyst Mike Walkley downgraded the cellphone manufacturer from a Hold to a Sell on Monday because he was not convinced that BlackBerry 10 sales could return RIM to profitability or popularity.
What was Walkley’s Analysis?
“While we believe BB10 is a dramatically improved user experience versus BB7 and RIM’s new hardware is more competitive with higher-end smartphones, our checks do not indicate the consumer pull, carrier push, or developer excitement necessary for BlackBerry 10 to reverse the challenging trends faced by RIM in order to return the company to sustained profitability,” wrote Walkley in a research note seen by Barron’s.
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The “checks” that Walkley referred to were the global smartphone sales for the month of November. These figures showed that Apple’s (NASDAQ:AAPL) iPhone, as well as Samsung’s Galaxy S III, experienced “very strong sales” in the last four weeks.