Apple iMessage to Take on RIM’s Blackberry Messenger

by Trefis Team
11.98
Trefis
RIMM
Research in Motion
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Apple (NASDAQ:AAPL) recently introduced the iMessage service, which is a new messaging service that lets users send text messages, photos and videos between all Apple devices. [1] This could challenge Research in Motion’s (NASDAQ:RIMM) popular BlackBerry Messenger (BBM) service from RIM with 43 million active users, [2] which has been a unique selling point as the company struggles to compete with Google (NASDAQ:GOOG) Android and Apple’s iPhone.

RIM has also been losing market share in the U.S. smartphone market for the last few months with smartphones based on Google (NASDAQ:GOOG) Android and Apple iPhone the main beneficiaries. According to a recent report from Comscore, RIM’s U.S. market share declined from around 30% in January to 26% in April 2011. [3] Due to these reasons we have updated our price estimate for RIM stock from $68 to $51 thought our price estimate is still about 40% above market price.

See our complete analysis for RIM

Notes:
  1. Apple’s press release, June 6th 2011 []
  2. BlackBerry Messenger now has 43 million active users, May 19th 2011 []
  3. comScore Reports April 2011 U.S. Mobile Subscriber Market Share, June 3rd 2011 []
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