RIMM recently got clipped following earnings that did not blow the iphone out of competitive range. RIMM's blackberry is still a solid veritable if not top brand name for the smart phone industry. Stupid pundits speculate RIMM will suffer in its margins due to competition among other brands - but this is not logical due to the incredibly strong brand RIMM already has. I like the argument that says business continue to buy RIMM over iPhone because iPhone is viewed to be more of a novelty device. RIMM also provides way more security than the iPhone and is viewed as more economical. Some say "businesses will stop spending." That might mean something to products that business a) don't need and, b) don't have to replace, additionally c) business can pass the cost onto employees. The fact is smartphones need replacing. Another fact is that people would give up lots of other luxuries before they give up their precious smartphone. Blackberry remains a resilient brand name whose only competition for brand is the iPhone and it is arguably more valuable of a brand than the iPhone. Business or people at the minimum must continue to buy these phones because technology has that curve of both obsolescence and depreciation. Additionally only about 20% of the phone market is smart as of now although that number may now be at around 22%.
$67.57 (10/05/09)
