According to a recent report from Comscore, Research in Motion's ( RIMM ) share in the U.S smartphone subscriber market declined from around 32% in December 2010 to 27% in March 2011. Google's ( GOOG ) Android was the biggest beneficiary and increased its share to 35%, while Apple's ( AAPL ) market share slightly increased to around 26%. This is not good news for RIM, which was the leader in the U.S. smartphone market until December 2010. The fall has been dramatic, and RIM is now in danger of losing its second place position to Apple in this market. Can RIM revive its lost glory?
We believe that RIM desperately needs innovative products to help revive its business and meet our quite bullish $68 price estimate for RIM stock , which is about 50% above market price.
Can RIM Revive its Fortunes?
If RIM is unable to control its smartphone market share decline, it's overall mobile phone market share will be in trouble. We currently anticipate that RIM's market share will increase from 3.2% in 2010 to 3.7% in 2011, but RIM will need to innovate fast to meet our expectations.
RIM recently announced the introduction of the latest version of its smartphone operating system BlackBerry 7, and unveiled two new BlackBerry Bold smartphones based on this OS. The new OS has a few improvements over preceding versions like faster performance for touch-screen navigation, web browsing, video and gaming and support for Near Field Communication ( NFC ) technology.
These developments look promising, but it remains to be seen if RIM will be able to meet our optimistic expectations.