RIM has just about doubled its market share of smartphones in the past year but has been pretty much helped by selling low cost smartphones like the Curve and Pearl Flip where Apple and HTC have often kept to selling higher-end devices that are less susceptible to pressure for price cuts.
Analyst Mike Burton of ThinkEquity stated and warned on Friday that RIM is most likely going to suffer on the verge of a price war against other smartphone makers such as HTC and Apple. He advised investors to sell their stocks immediately before the “price war.” Burton understands that carriers and competition are pushing even high-end phone makers like RIM, Apple and HTC to drop the prices on their phones and that RIM’s BlackBerries are likely to struggle without significant price cuts. Although the Canadian phone maker already has budget models as well as premium devices, these weren’t considered enough.
Burton mentioned “We think that even [RIM] with its multiple product cycles underway will have trouble growing in this environment,” Burton said. “To combat this decreased spending environment we believe that [RIM] will be forced into making more price concessions.”
-by Mac Jadalhack