Saying carriers will transfer their promotions from Nokia (NYSE:NOK)smartphones to Research in Motion Ltd. (NASDAQ:RIMM) smartphones in response to their decision to go with Microsoft's (NASDAQ:MSFT) Windows Phone 7 platform, Citigroup (NYSE:C) upgraded RIM from "Sell" to "Buy."
Citigroup analyst Jim Suva said, “This promotion commotion shift away from Nokia to other OEMs … will take center stage as Nokia loses share in the quarters ahead. While RIM’s market share has seen some pressure of the last two quarters due to Android, we nonetheless believe that RIM should be able to capitalize on a confusing Nokia strategy.”
While Nokia and Microsoft are working on releasing their first phone, it leaves what Suva identifies as a “multi-quarter gap in Nokia products and carrier promotion support."
Consequently, RIM should get an unexpected boost in business during that period.
Suva increased his price target on RIM to $80.
Wednesday, February 16, 2011
Citigroup (C) Sees Nokia's (NOK) Decision Helping RIM (RIMM) in Short Term
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1 comment:
Carriers are not going to put too much emphasis behind RIMM products which are rapidly entering the "has-been" category.
They will be going all out to push the more beautiful and more secure iPhone and Android models.
Especially when RIMM phones begin to manifest the many bugs that will be inherent in an OS (QNX) which has only been in RIMM's possession for a mere 11 months. An inadequate period for Engineering optimization time.
Think... Disaster.
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