BlackBerry-maker Research In Motion Ltd.,(RIMM) recently announced the launch of two new smartphones namely, BlackBerry Bold 9790 and BlackBerry Curve 9380. The new smartphones are based on the company’s newly launched BlackBerry 7 (BB7) operating system.
BlackBerry Bold 9790 features 8GB memory in-built memory and is expandable up to 32GB. It also offers huge multimedia support and easy browsing facility. On the other hand, the new BlackBerry Curve 9380 is an all-touch handset with 5MP camera and supports HD video recordings.
Both the smartphones are expected to hit the stores just before the holiday season in order to gain a significant portion of market share as well as to compete with other smartphone makers.
Earlier, in August this year, Research In Motion upgraded its handsets by introducing five new smartphones based on their new BB7 platform. By introducing two more handsets, the company currently has 11 BB7-based smartphones in their product portfolio.
The launch of BB7-based handsets along with the upcoming holiday season will certainly boost sales in the near term. Moreover, the company plans to launch their first QNX-based smartphones in the middle of 2012, which we believe will be accretive to the company’s revenue and will also help them to regain market share.
However, stiff competition from Google Inc.’s (GOOG) Android-based smartphones and Apple Inc.’s (AAPL) iPhones will result in loss of market share.
Moreover, tepid response for the newly launched PlayBook tablets coupled with huge margin pressure related to the sale of unpopular tablets will act as headwinds for the stock going forward.
We, thus, maintain our long-term Neutral recommendation for Research In Motion Ltd. Currently, the company has a Zacks #3 Rank, implying a short-term Hold rating on the stock.
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