SHOCKER: RIM's (RIMM) BlackBerry Continues Bleeding U.S. Market Share!!!

November 27, 2012 12:02 PM EST
It's funny the way an investor's mind operates.

Research In Motion (Nasdaq: RIMM) shares are slumping amid new market data that its U.S. market share fell to 1.6 percent for the three-weeks ended October 28th. Kantar Worldpanel ComTech noted that RIM's BlackBerry market share dropped 6.9 points over a 12-week period ended in October.

Kantar Worldpanel ComTech also said Apple's (Nasdaq: AAPL) iPhone gained 26 points over the same period for a 48 percent market share.

The question is, did anyone expect something different? RIM, currently trading 6.3 percent lower on the session following a nine-session rally, is still bounds below all-time highs of $145 or so reached in 2009. Like peer Nokia (NYSE: NOK) with its transition from Windows Phone 7 to Windows Phone 8, no one is likely to buy a smartphone that will be outdated in a few months, so many will wait until BlackBerry 10 rolls out early next year. (Yes, the fact that WP7 wasn't upgradable to WP8 hasn't helped out Nokia either.)

We have another prediction: RIMs U.S. smartphone market share will fall even further through the end of January and probably for most of February.

Those willing to wait it out will probably be rewarded. Going back to Nokia, sentiment for WP8 sales have improved over the last few months, driving the stock from the $1.70 to $1.80 range over the summer, up to the $3.30 level currently. Given the potential of RIM, patience might be the best virtue on this one.

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Profit taking
PK on 2012-11-27 21:26:35
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Great article, it is curious watching the dramatic headline driven share price changes. I think this one can be attributed to simple profit taking, many made a bundle over the 50% run up this month, cant blame them for selling some evn though it will likely go further.

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