Research In Motion (NASDAQ:
) is only days away from revealing the full release details for
BlackBerry 10, the company's long-awaited mobile operating
The firm has been somewhat of a golden child on Wall Street,
rising nearly 50 percent in January 2013 alone. Over the last six
months, shares of Research In Motion have climbed more than 137
percent. Some of those gains are being diminished Monday as the
stock plummets more than six percent. Even so, Research In Motion
is still largely considered to be one of the most important
stocks in technology.
Nonetheless, not all analysts are convinced that BlackBerry 10
will be a huge success. Jan Dawson, Chief Telecoms Analyst at
Ovum, fears the worst.
"RIM continues to face the twin demons of consumer-driven
buying power and a chronic inability to appeal to mature market
consumers," Dawson said in an e-mail Monday morning.
"There is nothing in what we've seen so far of BB10 that
suggests it will conquer the second of these demons, and the
first is utterly out of RIM's control. We don't expect a speedy
exit from the market; with no debt, 80 million subscribers and
profitability in the black in at least some recent quarters, the
company can continue in this vein for years. But its glory days
are past, and it is only a matter of time before it reaches a
Dawson's comments originated from a
December blog post
on Ovum's website. He said that Research In Motion's strategy is
more focused on building the best BlackBerry device for
BlackBerry users "rather than something that will necessarily win
converts from other platforms."
"The points of differentiation RIM has focused on in teasers
for the new platform confirm this - better multitasking,
productivity, email, contacts and calendar applications and so
on, rather than a better gaming, content consumption or social
networking experience," Dawson added.
The mainstream media has been quick to
praise Research In Motion's latest effort
while dismissing everything Apple (NASDAQ:
) releases. Apple, which was the golden child of Wall Street and
the mainstream media in 2011 and the early parts of 2012, is no
In a bit of irony, Apple's stock is up more than two percent
Monday. These gains come after more than four months of losses
that exceeded 35 percent.
Some might say that the two stocks have an inverse
relationship; as Research In Motion rises, Apple falls. The
opposite also appears to be true.
This could be due to the limited potential that smartphone
manufacturers have in the marketplace. Unlike Samsung, which
produces a multitude of electronics that could carry the business
if its smartphone division dies off, Apple's future is heavily
dependent on the iPhone.
Outside of a failed tablet, Research In Motion does not make
anything but smartphones, so BlackBerry 10 must be successful in
order for the firm to survive.
When things were not looking good for Apple, investors seemed
all too eager to buy into Research In Motion. Now that BlackBerry
10 is about to be released, some investors are getting cold
Of course, the company could rebound tomorrow. It could soar
all week if the final BlackBerry 10 devices prove to be popular
in the media.
The real test, however, will not come until the devices are
finally released. Even then investors will not be able to judge
their success until they have been available for a few months. If
BlackBerry 10 performs well after the launch rush, investors can
rest easy knowing that Research In Motion might have a secure
If that fails, don't fret -- Apple will be happy to take any
and all investors that want to come crawling back.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Gain access to more investing ideas, tools & education.
Get Started on Marketfy, the first ever curated
& verified Marketplace for everything trading.