The nightmare of Research In Motion (RIMM) continues and so far the company has failed to provide any specific timeframe when its free-fall will come to an end. Ever since Apple's iPhone hit the market, Research In Motion has been losing its leadership position. For the last couple of years, the company failed to launch any device that could capture market share from iPhone or Android-based high-end smartphones.
After experiencing weak financial results for the first quarter of fiscal 2012, the company reported highly disappointing future financial guidance. It seems management is doing research in slow motion, as the company failed to understand how the tastes and preferences of consumers are changing.
Meanwhile, the market becomes intensely competitive with the emergence of several low-cost Asian phone developers. We do not find any immediate catalyst and therefore downgrade our recommendation to Underperform.
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