RIM's Global Market Share to Fall Below 5%, Analyst Warns

Posted by Knowlton Thomas

Can RIM's global market share fall below 5%? It's a scary thought, but RBC Capital Markets analyst Mark Sue believes it's all too possible.

Mark forecasts RIM will sell just 9 million BlackBerrys this quarter, below the going estimation of 10.5. And although he acknowledged that "RIM has no debt," Mark warned clients that if things keep going south, "RIM may burn cash next year."

But that wasn't the only grim statistic the analyst predicted. Mark anticipates RIM's average selling price to decline 20% this fiscal year. He also expects average service revenue per user to sink 9%. And he further suggests that unit sales will collapse 19%.

RIM shares are up 3% today to $14.50. The company is rumoured to be announcing its BlackBerry 10 platform and first device this August.

Company:
BlackBerry
Website:
http://www.blackberry.com
Location:
Waterloo, Ontario, Canada

Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry® solution in 1999. BlackBerry products and services are used by millions of customers around the world to stay connected to the people and content that matter most throughout their day. The BlackBerry product line includes the BlackBerry® PlayBook™ tablet, the award-winning... more

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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis or otherwise enjoying the outdoors. more

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