Research In Motion, BlackBerry Company, Feeling Heat Of Apple Competition

Investor Faisal Laljee (Seeking Alpha) can't make heads or tails why Research In Motion (RIMM) has slipped from $145 to $115 after only a slight earnings miss last month. This is no mystery: The company is at war with Apple (AAPL) to protect its business franchise and capture the consumer market, and increased marketing spending on the latter front is hurting margins. (And, of course, the broader market is collapsing).

Even after the miss, RIM still trades at more than 40X trailing earnings, so there's still a momentum premium in there. It has sold off considerably, so Faisal is probably right that it's due for a bounce. Eventually, however, even if the business continues to thrive, RIM will trade at 25X-30X. Don't believe us? See the demise of every momentum stock in history.

Read the whole story here.

Comments

[memphispaul]

What competition?
Apple just imploded...

[CaptainHowdy]

Surprise, surprise... yet another Apple ad disguised as a (non) news story on HuffPo.

Apple is NOT going to infiltrate the corporate phone market with the iPhone any time soon. it just aint gonna happen. Especially with a phone who's main strengths are watching videos, listening to music and browsing the web. Not really the sort of features that the corporate world wants to spend money on or worry about their employees using.

If Apple is serious about taking on RIM, they are going to need to develop a new model with features more in line with corporate needs.

'Till then, these stories are complete and utter BS.

[memphispaul]

It might actually help if apple could develop and field a phone that can handle a fall of more than 6".

[ccpostman]

Where have you been the last few months? In a cave with no RIM reception?

Here is a clue....Apple is coming out with a new 3G phone and a IPhone apps store like what you get on Itunes. Not great marketing and sales news for RIM.

http://www.apple.com/iphone/guidedtour/
http://events.apple.com.edgesuite.net/0806wdt546x/event/index.html

RIM RIP

[FlyTheBlueSky]

The iPhone is not suited for business:

1. The hardware is fragile and cannot take a beating.
2. Battery cannot be replaced. Business users like the option of being able to take a spare battery on the road, just in case.
3. iPhone email handling capability is poor - compared to Blackberry enterprise and personal email services.
4. iPhone is larger than the Blackberry. I like something that fits in my pocket, comfortably.
5. iPhone keyboard is not as easy to use as the Blackberry.
6. Business users do not need iTunes. I don't need iTunes anyway -- Rhapsody is much cheaper...

As I see it, iPhone and Blackberry cater to different markets. If you need a business tool, you're more likely to choose a Blackberry. If it's for personal use, the iPhone is a better fit.

[buddhistMonkey]

((( "If Apple is serious about taking on RIM, they are going to need to develop a new model with features more in line with corporate needs." )))

It's called the iPhone 3G, and it will be on sale Friday. You can read about it here:

www.apple.com/iphone/

[outnow]

I like the idea of a tactile keyboard on the Blackberry. The virtual keyboard is difficult at first for me on the iPhone. Either way, there is something for everyone between these two devices. Blackberries will be around for another two years probably. The Blackberry World Edition with Sprint goes internationally but with big costs on the SIMM card charges. Make sure that you understand the charges for downloads and telephone calls internationally because they add up.

More economical and faster downloads internationally will be the thing of the future. The phone itself will be a super high-speed modem first and a telephone and browser later. The look and feel of the phone are important but the charges will be more important to world travelers.

[Sundialsvc4]

(Shrug...) It is the way of things.

Blackberry was "first to market." And they have had a good run.

Now, they face the next-evolution of the industry, which puts a complete OS/X (Unix) computer in the palm of your (and my!) hand. You can't stand on your laurels... but you knew that going in, didn't you?

Thousands upon thousands of Blackberry owners are not going to "jump ship," that is to say not-yet, but you have to return the serve. In fact, what you really need to do is to smash that tennis-ball right back down Apple's throat! But you knew that too.

And I am quite sure that Blackberry will find a way to do just that.

[mntnguy]

well you are right on one regard blackberry was first to market however it never did hit big among consumers only gov and biz people and lets not forget the service leaves much to be desired for the handsets are always a problem never do what they are suposed to very complicated to work i mean you need a class to send a email. not really but you get he point! by contrast The I Phone has taken the full spectrum of the market both personal use as well as corp America. The handsets while new to most are very user friendly and easy to use much like apple computers. Blackberry will be gone inside of 2 years tops! and if apple keeps this progression up and growing the way they are they will own a massive portion (40-50%) of the personal computing market in 5 years! there products do what they say they are very reliable and user friendly plus when you need service they are johnny on the spot. They have minor issues from time to time but all in all apple stands by its products and the people that own them love them bottom line

[TrevorAlan]

I'd like an itouch (iPhone without the phone), but I can't get an iphone cause you have to get crappy ATT cell phone service.

I wasn't looking for a blackberry, but if they'll stay open to all cell phone providers, I just may reconsider.

[mntnguy]

there is I Phones out there for all services now you can buy them on ebay or thought other outlets. The ATT thing was just for the first release Apple is currently releases models for most all wireless carriers.

[DRaymond]

Blackberry is a high-end product. Nobody is giving a free blackberry with a two year service contract or a two year renewal. So in a slow economy they may not be getting more that the basic contract or keeping their old device. Not to mention everyboy is hurting in this market

[mntnguy]

people who use blackberry are not hurting so much they can not buy a new toy or two especially toys that only cost a few hundred. these are not people that take the free phone for a contract. They by what they want and have the money to do so

[DRaymond]

Well a great many blackberries were bought by corporations, and corporate IT departments are looking closely at unnecessary expenditures in this market and unless the new blackberries have a huge advantage over the old ones they will stick with them.

As for current personal blackberry users when their 2-year service contracts come due will they spend a couple of hundred dollars to get a new balckberry with a contract extension or just get the contract extended and keep their phone? For a lot of people paying a couple of hundred dollars for the blackberry was a splurge two years ago and they might want to delay doing it again.

As for the people lining up on the first day? There is a certain segment of people whose self-worth is based on buying the very latest thing that Steve Jobs wants to sell them. I call them i-robots.

[Buckywunder]

My PC partner who has had a Blackberry is now poised to get the new 3G iPhone. After getting me the 2.5 and seeing its advantages up close, she is probably going to get the new one.

That's step one.

Next on my agenda: proving that Macs are better PC's than PC's...

[mntnguy]

Apple is way better than PC always has been just did not have the marketing to make a dent in Microsoft but now that they have a family of products your going to see things change very quickly.

[CaptainHowdy]

Such a crock. Macs are no better than PCs. This is usually said by people with that aren't very knowledgeable or experienced with computers. Both platforms have strengths and weaknesses. I use both PCs and Macs and like using them both, for different reasons.

[Sundialsvc4]

Although I own an iPhone that I consider "paid for itself within two weeks," the Blackberry system is still an extremely impressive system ... a very worthy competitor that need bow its head to no one. Let that much always be clear.

[mntnguy]

Actually i find there system to be out of date and old! They have had so many crashes every time they try to upgrade they have stopping trying for fear they might crash the system! plus there handsets are way behind. If you want to know what i mean check out some models from London or japan they are up to date on cell technology.