Last Updated on June 26, 2008 by stlplace
Bear case
RIM (Nasdaq: RIMM) missed both top line and bottom line in Q1, and issued not so strong outlook for Q2. Read news from Reuters for more details. Q1 revenue is $2.24 b vs. expected $2.27 b; earning was $0.84 vs. 0.85. While I think missing of bottom line is understandable because of spending in R&D, the revenue miss is not because its competitor iPhone was sold out going into the end of quarter.
Competition from iPhone will intensify. New 3G iPhone will be launched on July 11, and it is deceptively priced at $199. The reason I said “deceptively” is the real owner cost is much higher (see Christopher Null, How the half-price iPhone 3G actually costs you more).