RIM investors overreact to the iPhone

Comments

investors.jpg

Really? Just the investors? Thanks to this the tipster with the weird screen name “WoodyLovesTheBoss”, we’re pointed to this article on Yahoo that says what not one of you were thinking: “Investors Overreacted to Apple’s Threat to Research in Motion, Analysts Say”. The article notes that the BlackBerry won’t lose it’s dominance in the market amongst businessfolk because the iPhone is targeted toward the consumer market. Sure, it starts that way, but will it stay?

Yesterday saw the majority of mobile stocks take a bit of a dip – heck, RIM’s stock went down almost 8%, but that, as stated, should be no cause for concern.

“The sell-off in Research in Motion stock is overdone,” Merrill Lynch analyst Vivek Arya wrote in a client note. “We think Pearl’s momentum can continue and will further accelerate.”

Who agrees with this? …anyone?

  • Verizon User

    Accelerating momentum? No way. For people who want a smartphone this year, the Pearl is a good choice. And the price of the iPhone will certainly limit adoption well into 2008. So Pearl sales in 2007 probably won’t be greatly affected. What will be affected is the sales and excitement around the next-gen BB smartphone. The iPhone is a Pearl v 2.0 killer.

    I have to assume that the 2008 iPhone will be cheaper and better as Apple refines its manufacturing process and component costs decline. Either BB will match features or the iPhone will dominate. Who knows. But clearly Apple has raised expectations for what a smartphone can do.

    Also, on price, I’m paying ~$1500/year for a Verizon family plan with 3 phones and unlimited Internet. If a $500 device is better than a $250 device over the two year life of the plan, I’m going to pay the extra $$. The real investment is Internet in my hand, and I want the best device to leverage my investment.

  • Verizon User

    Accelerating momentum? No way. For people who want a smartphone this year, the Pearl is a good choice. And the price of the iPhone will certainly limit adoption well into 2008. So Pearl sales in 2007 probably won’t be greatly affected. What will be affected is the sales and excitement around the next-gen BB smartphone. The iPhone is a Pearl v 2.0 killer.

    I have to assume that the 2008 iPhone will be cheaper and better as Apple refines its manufacturing process and component costs decline. Either BB will match features or the iPhone will dominate. Who knows. But clearly Apple has raised expectations for what a smartphone can do.

    Also, on price, I’m paying ~$1500/year for a Verizon family plan with 3 phones and unlimited Internet. If a $500 device is better than a $250 device over the two year life of the plan, I’m going to pay the extra $$. The real investment is Internet in my hand, and I want the best device to leverage my investment.

  • http://thebogles.com/blog Phil Bogle

    The iphone is too limited in terms of text input, too slow in network support, too pricey to rule either as.a mass market device or as a business device.

    This isn’t to say it won’t be a great locked-in ITunes video and music device. But can a 2.5G phone that doesn’t have a real keyboard really steal significant share from the existing Blackberry market?

    Touch typing on a touch screen without a stylus is impossible. Music, photos, and movies are good applications of the iphobe, email, search, and IM are not.

    Plus the iphone is only 2.5G, in six months time that will be a serious liability at that price point.

  • http://thebogles.com/blog Phil Bogle

    The iphone is too limited in terms of text input, too slow in network support, too pricey to rule either as.a mass market device or as a business device.

    This isn’t to say it won’t be a great locked-in ITunes video and music device. But can a 2.5G phone that doesn’t have a real keyboard really steal significant share from the existing Blackberry market?

    Touch typing on a touch screen without a stylus is impossible. Music, photos, and movies are good applications of the iphobe, email, search, and IM are not.

    Plus the iphone is only 2.5G, in six months time that will be a serious liability at that price point.