BlackBerry-maker Research In Motion continues to fight the uphill battle against the iPhone and Android-powered devices, but some analysts think the company could be in for a turnaround when the new BlackBerry 10 devices hit stores early next year.
Only some observers were that optimistic, though, as RIM late Thursday reported narrower losses and more cash than expected. Others fear RIM still is on a crash course for oblivion, given its inability to compete against Apple and Google.
“We have not seen enough of BB10 to change our view that the new operating system will not be enough to reverse the dramatic smartphone market share losses,” BMO Capital Markets analyst Tim Long wrote in a client memo.
“We remain cautious,” said Scott Penner, a TD Securities analyst.
The problem most analysts are noting for RIM is that it’s planning to debut BB10 after the Christmas buying season. At the same time, RIM competitors are unveiling upgraded devices between now and December. And, in January and February, people will be less willing to fork out hundreds of dollars for a new gadget since their holiday credit card bills will have arrived. Some analysts further are concerned that RIM won’t release the BB10 in early 2013, as the Canada-based company has a track record of missing its intended launch dates. To wit, the BB10 introduction already has been delayed at least twice.
As for the numbers, RIM reported a net loss of $235 million Wall Street had anticipated losses of more than $500 million. Revenue totaled $2.9 billion, up 2 percent from the previous quarter, and cash flow reached about $2.3 billion. As a result, RIM’s stock was trading higher on Friday.
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January 15 2019 @ 19:53:17 UTC