Smartphone explosion good news for RIM

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explosionphone.jpgThere’s always way too many people looking into their crystal balls, but I guess that’s just the way society works these days. According to folks at Merrill-Lynch, smartphone sales are nearing some sort of explosion this year (in a good way), and RIM’s waiting in the wings to take advantage of the result. Talk about perfect timing for the 8300.

“We believe RIM is uniquely positioned to benefit from a multi-year acceleration in smartphone sales,” Merrill Lynch analyst Vivek Arya says in a note to clients, adding the Blackberry maker’s new product line-up, which includes multimedia, GPS and mobile commerce features, will drive its next leg of growth.

Maybe this is the year when RIM’ll finally make it to where they want in the consumer market. Anyone want to jump on the bandwagon now before it gets too crazy?

He raised RIM’s fiscal 2008 EPS estimate by 6% and its fiscal 2009 estimate by 15%, while reiterating his ‘buy’ recommendation and price objective of US$165, which represents roughly 21% upside on the current value of the stock.

In the research note, Mr Arya says IDC, an information technology research company, is projecting smartphone shipments in RIM’s core markets, which include Canada, the U.S. and western Europe, will increase from 39% growth last year to over 50% for the next two years.