BlackBerry 10 - Enough to Save RIM?

Jim Suva, an analyst with Citi, recently sent out a research note in which he argued why RIM’s stock will continue to slide. He set a $12 price target for the Waterloo-based company’s stock and said he still maintains his “Sell” rating. Suva also listed 10 reasons why RIM’s situation isn’t going to improve any time soon. As compiled by Forbes:

  1. RIMM is at risk of missing back to school in 2012, because….
  2. …The launch of its BB 10 products was delayed to the calendar 2012 second half from the first half “as the company is planning to use more integrated, higher efficiency LTE chipsets for its next generation platform.”
  3. RIMM can not cancel its Playbook program as the QNX language is the future of the company which developers and enterprises need to work with.
  4. RIMM is missing much of the Nokia share opportunity while Apple and Android are grabbing this share.
  5. The iPhone 4S is pressuring  RIMM’s North America business as Verizon’s CDMA iPhone 4 was not suited for traveling business users.
  6. RIMM is losing carrier support in shelf space, promotion, eagerness for product certification.
  7. Highly profitable monthly carrier subscriber fees to go lower as North America for RIMM continues to go lower and network outages cause carriers to push back on these fees.
  8. RIMM is going through a business realignment (restructuring) and will reduce employee count at a time when we believe the company should be hiring to get product out on time versus delays.
  9. EPS growth will decline year over year and RIMM’s sales growth will be less than half of the industry’s smart phone growth.
  10. BYOD (bring your own device) and corporate sandboxing are only beginning and could severely impact the company.

RIM’s struggling, no doubt. The company’s PlayBook wasn’t exactly a hit product — in fact it’s now available for just $200 — and its “latest” BlackBerry smartphones still feel years behind the competition. The company will really need to wow investors and consumers alike when it unveils its next generation BB10 smartphones, although, as Suva points out, it might already be too late.

[via Forbes]