Skip to main content

The Globe and Mail

RIM results will continue to disappoint: BMO

A person uses the Blackberry Bold 9900.


Research In Motion Ltd.'s revenue and margins will continue to disappoint in the coming quarters due to a lack of clarity on the launch and impact of its latest version of BlackBerry, BMO Nesbitt Burns said.

The Canadian company, which is battling unimpressive sales of its existing suite of products, has said the smartphones would be out in the second half of 2012.

Analysts view the launch, of what RIM has dubbed the BlackBerry 10, as a "make or break" event.

Story continues below advertisement

"We are ... more cautious on the timing and impact of Blackberry 10 Smartphones, which at best should arrive in the November quarter," analyst Tim Long said and cut his price target on the company's U.S. shares by $3 to $12.

"While we see some value in the subscriber base ... we struggle to see how it will be unlocked," Mr. Long said in a note to clients.

U.S. shares of the company were down 1 per cent at $13.27 premarket on Wednesday.

RIM's shares have slumped 80 per cent from a peak in February last year as the company misjudged the shifting landscape and botched the launch of the PlayBook, a poor-selling alternative to Apple's iPad tablet.

"Both ARPU (average revenue per user) and service margin will come under pressure in the next few quarters," Long said.

Long is rated five star by Thomson Reuters StarMine for the accuracy of his earnings estimates on RIM. StarMine awards the top 10 per cent of analysts five stars.

RIM's U.S. sales have fallen for five straight quarters, as consumers embrace Apple's iPhone and high-end devices running Google's Android software. RIM will report its latest quarterly results on March 29.

Story continues below advertisement

Report an error
Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at