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RIM does better than expected versus Apple

updated 11:05 am EST, Fri December 19, 2008

UBS on RIM vs. Apple

BlackBerry maker Research in Motion is surviving quite well in spite of the economy and competition from Apple, says UBS analyst Maynard Um. In announcing the results of its fall quarter yesterday, RIM revealed that it had shipped 6.7 million phones during the period, well ahead of what forecasts had predicted. This is being attributed to the release of two high-profile BlackBerries, the Storm and the Bold, which have drawn considerable attention from both the media and the public.

The performance is said to be particularly relevant for key competitor Apple, whose iPhone shipments are expected to be only 5 million for the December quarter, down 27 percent from the last quarter as retail works through inventory. Apple and RIM face the same uphill battle, moreover, as their phones each demand an expensive data plan at a time when the drain is difficult to justify.

Mixed fortunes may result from the higher gross margins and average selling prices of iPhones; whereas RIM's hardware margins are believed to be hovering around 32 to 33 percent, iPhone margins are approximately 40 percent. This would be beneficial for Apple in an unchallenged environment, but Apple may be forced to slim margins in order to deal with growing competition.




by MacNN Staff

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Comments

  1. davincij

    Joined: Dec 1969

    +10

    Returns

    I think RIM is going to drop in the future. I was one of the people who pre-ordered the Storm, waited a week to receive it and then was utterly disappointed. The phone was terrible and I returned it and immediately went to ATT and bought an iPhone. The Storm is a terrible phone and the Bold is 100 dollars more than an iPhone. Verizon can say whatever they want but I find it hard to believe that the Storm won't have a high return rate. It is terrible.

  1. Guest

    Joined: Dec 1969

    +2

    Returns

    Don't remember if it was on Apple Insider or Mac Daily news, but a report the other day did state that blog and other third party reports were indicating a very high return level on the Storm to Verizon. If true, the article indicated RIM was going to take a bath on this rushed to market device, unless firmware updates fixed the slowness and other issues plaguing it.

  1. Constable Odo

    Joined: Dec 1969

    -1

    So much for the

    death of the BlackBerry. There is enough room for iPhones and BlackBerrys in the smartphone market. Only the companies such as Palm and Motorola and Samsung are going to lose out.

  1. bleee

    Joined: Dec 1969

    +1

    Blackberries are cheap

    DB's are now the new cheap Nokia phone. But they one full featured communications devices. If everyone had a black berry they'd save tons on SMS $$$. I here one for work and am fortunate enough that all my friends have them. I also have an iphone for personal use and it holds its own for business use.

  1. bleee

    Joined: Dec 1969

    -1

    Blackberries are cheap

    DB's are now the new cheap Nokia phone. But they one full featured communications devices. If everyone had a black berry they'd save tons on SMS $$$. I here one for work and am fortunate enough that all my friends have them. I also have an iphone for personal use and it holds its own for business use.

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