Jefferies Comments on Q112 QNX Launch by RIM (RIMM): Rushed Job Could Be Harmful
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Price: $14.64 +12.36%
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies comments on Research In Motion's (Nasdaq: RIMM) upcoming QNX-equipped smartphone. The firm maintains an Underperform rating and $22 price target on the shares.
RIM's QNX phone is expected to launch sometime in the first-quarter of 2012, according to Jefferies. Though RIM has dubbed the device a "superphone," Jefferies notes, "we also believe it will be a single-core, non-native email, non-push, non-data compressed Blackberry...we find these specs uncompelling...we see this as nothing more than ditching features, functionality, and performance in an attempt to adhere to a Q1 launch commitment to carriers and partners." Jefferies is looking for the second-half of 2012 for native email, dual-core QNX phones.
Further, Jefferies says, "we would become incrementally more bearish if RIM were to launch an underpowered and non-BES/BIS-linked Blackberry powered by QNX. We believe it would harm consumer perceptions and would likely encourage enterprises to seriously evaluate alternative solutions...[one prominent blog] reports that enterprises will have to use Microsoft's ActiveSync to support Microsoft (Nasdaq: MSFT) Exchange email on the QNX phone. We believe this could lead to a permanent shift away from Blackberry services and devices."
RIM shares are about 6.2 percent better on Tuesday's session.
Click here for more analyst color on RIM, or here for a ratings history.
RIM's QNX phone is expected to launch sometime in the first-quarter of 2012, according to Jefferies. Though RIM has dubbed the device a "superphone," Jefferies notes, "we also believe it will be a single-core, non-native email, non-push, non-data compressed Blackberry...we find these specs uncompelling...we see this as nothing more than ditching features, functionality, and performance in an attempt to adhere to a Q1 launch commitment to carriers and partners." Jefferies is looking for the second-half of 2012 for native email, dual-core QNX phones.
Further, Jefferies says, "we would become incrementally more bearish if RIM were to launch an underpowered and non-BES/BIS-linked Blackberry powered by QNX. We believe it would harm consumer perceptions and would likely encourage enterprises to seriously evaluate alternative solutions...[one prominent blog] reports that enterprises will have to use Microsoft's ActiveSync to support Microsoft (Nasdaq: MSFT) Exchange email on the QNX phone. We believe this could lead to a permanent shift away from Blackberry services and devices."
RIM shares are about 6.2 percent better on Tuesday's session.
Click here for more analyst color on RIM, or here for a ratings history.
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