BlackBerry smart phones
Google's eagerly-anticipated Nexus One phone may be grabbing the headlines, but rival Research In Motion has been quietly boosting its sales, according to analyst firm Avian Securities.
"Recent U.S. retail store checks indicate a solid December driven by the popularity of the Bold 9700 at AT&T and T-Mobile, wrote Avi Cohen, the firm's director of research, in a note released Monday.
With rival Google expected to launch its Nexus One phone in a blaze of publicity tomorrow, RIM has been hard at work bolstering its links with key partners.
For example, Mr. Cohen pointed to "significant" promotional activity on RIM's part, such as 50 per cent off all BlackBerry devices at AT&T and promotions at Sprint and Verizon.
"Research In Motion's February quarter is off to a solid start as our checks indicate a strong December for Blackberry in the U.S. market," he added. "Our checks in Europe published several weeks ago also indicated continued momentum for Blackberry in December."
Avian's checks will be welcomed by RIM investors at a time of intensifying competition in the smartphone space. In addition to Apple's iPhone, the Blackberry faces stiff competition from Google Android phones such as Motorola's Droid and HTC's Eris, not to mention the forthcoming Nexus One.
BlackBerry users have also had to contend with recent service outages, hardly good news at a time when rivals are hell-bent on stealing share. Despite these challenges, the BlackBerry is still regarded as a key tool for many businesses, particularly for sending and receiving emails. During the company's recent fiscal third quarter, RIM added 4.4 million new BlackBerry users, taking its total subscriber base to around 36 million.
RIM shares dipped 85 cents, or 1.26 per cent, to $66.69 (U.S.) on Monday, possibly as a result of the brouhaha surrounding the Nexus One, which is expected to make its debut tomorrow at a press conference in Google's headquarters in Silicon Valley.
The tech sector's attention will also be firmly focused on Las Vegas this week as investors keep a close eye on the Consumer Electronics Show, traditionally a launch pad for a slew of new products.
RIM, however, has typically avoided making major announcements at the event, preferring to launch its products away from the CES feeding frenzy.
"While RIM will have a booth presence at the CES show in Las Vegas, we do not expect any material announcements from the company," wrote Avian Securities' Mr. Cohen. "However, we believe news flow around new competing products from the likes of Google (Nexus One), Palm (Pre/Pixi for Verizon), and possibly Motorola (Calgary/Devour for Verizon and/or Motus for AT&T) is likely to drive volatility in RIM shares."
RIM, which recently posted strong third-quarter results, expects fourth-quarter revenue to hit between $4.2-billion and $4.4-billion. Analysts surveyed by Thomson Reuters had predicted fourth-quarter sales of $4.29-billion.