RIM’s Turnaround Comes in 2012, New Phones Fall Short

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RIMM: Research In Motion logo
RIMM
Research In Motion

Research in Motion (NASDAQ:RIMM) recently announced plans to launch 5 new smartphones based on BlackBerry 7 operating system in a bid to revive its declining fortunes. [1] Although these smartphones have some advanced features like HD video recording capability and 1.2 GHz processor, it may still not be enough to make a meaningful run at Apple (NASDAQ:AAPL) iOS and Google (NASDAQ:GOOG) Android in the battle of smartphone operating systems. We still believe the trigger to RIM’s stock could be the next generation dual core “super phones” targeted to be launched next year. These super phones will be based on the advanced QNX operating system. We have previously discussed that the migration to QNX and careful choice of product portfolio will be the key to a successful turnaround for the Canadian company, which could justify our optimistic view on RIM’s stock (see What Justifies Our $43 RIM Estimate).

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We currently maintain $43 price estimate for RIM’s stock, which is about 70% above market price.

See our complete analysis for RIM stock here

Notes:
  1. RIM press release, August 3rd, 2011 []