RIM’s positive day turns downward on analyst warning

Although today started out on a high note for Research In Motion, it looks like Monday may end on a low note, at least where the Waterloo, Ont. company’s share price is concerned.

The day began with news of RIM itself tweeting that its PlayBook was the topselling tablet in Canada at both Future Shop and Best Buy last week,trumping even the almighty Apple iPad, according to reports from Mobile Syrup.

The positive vibes continued with another figure released from RIM,this one touting that 90 per cent of PlayBook users had upgraded to thelatest 2.0 version of its operating system within one month of itsrelease – a much higher uptake level than, say, Android‘s upgradeadoption rate, TechVibes reported.

But the good news gave way to a forecast, reported by Barron’s, fromCanaccord Genuity analyst Mike Walkley. He wrote that “with increasingsmartphone competition in all price tiers, we believe softer BlackBerrysales will continue during F2013, particularly with RIM delaying newBlackBerry 10 products until H2/C2012.”

Then came a warning issued today by Northern Securities analyst SameetKanade that RIM will likely face pressure to lower its monthly carrierfees from $5 per device to around $2 per month, a move that would cutinto its profit margins substantially, according to the Globe and Mail.

That sent RIM shares sliding by about 3.46 per cent (as of 2:15 p.m.ET) in intraday trading on the TSX. Just another up and down day in thedaily saga of RIM.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Related Tech News

Get ITBusiness Delivered

Our experienced team of journalists brings you engaging content targeted to IT professionals and line-of-business executives delivered directly to your inbox.