Shares of Marvell (NASDAQ:MRVL) are getting crunched today, as Susquehanna lowered its rating on the company from "Positive" to "Neutral."
Even though Marvell Technology Group is cheap at this time, it is balance by the risk shifts from its top customer Research in Motion (NASDAQ:RIMM) and the hard-disk market.
According to Susquehanna Financial chip analyst Christopher Caso, Marvell's most recent projection for the April quarter was made before the earthquake in Japan, which means it will be skewed because of the now anticipated weak quarter for disk drives.
Caso said with Western Digital (NYSE:WDC) accounting for about 21 percent of Marvell’s annual revenue, it “is likely to be affected by [Texas Instruments's (TXN)] motor controller shortage.”
Also noted was while Seagate Technology (NASDAQ:STX) will be adding some parts from Marvell in the quarter, that will be offset by the loss of some socket business from Seagate.
With RIM generating 14 percent of revenue at Marvell, it isn't too bright there either, even though the company will have “at least three new phones ramping at RIM."
Some of that negativity comes from assumptions that eventually RIM will use "QNX" operating systems, which will more than likely utilize Qualcomm (NASDAQ:QCOM) chips, not Marvell's.
Marvell was trading at $15.13, falling $0.84, or 5.26 percent, as of 2:19 PM EDT.
Showing posts with label RIM. Show all posts
Showing posts with label RIM. Show all posts
Monday, April 18, 2011
Thursday, March 31, 2011
UBS (UBS) Says RIM (RIMM) May Be Losing North American Subscribers
Research in Motion (NASDAQ:RIMM) may be losing subscribers in North America, said UBS (NYSE:UBS) analyst Amitabh Passi, citing information in the annual report of the company.
Passi said that net subscribers in the North American market have “either declined quite precipitously in the quarter, or, even more surprisingly, could have turned negative.”
Particularly pointed out was the revelation that 54.6% of BlackBerry users came from outside North America in the quarter, while modeling 6 million net subscriber additions during that time.
Also noted by Passi is RIM saying it is reducing its consumer access to its network operations facilities at a lower fee to carriers. If that was lowered by 10 percent for that monthly subscriber fee, it would lower EPS of Research in Motion by about 50 cents, concluded Passi.
To reach the EPS projection of $7.50, Passi said Rim will have to have a solid response from users from its new product line like Curve Touch, Storm 3, and Torch 2, as well as the Playbook tablet now on sale.
RIM was trading at $56.23, falling $0.80, or 1.40 percent, as of 1:10 PM EDT.
Passi said that net subscribers in the North American market have “either declined quite precipitously in the quarter, or, even more surprisingly, could have turned negative.”
Particularly pointed out was the revelation that 54.6% of BlackBerry users came from outside North America in the quarter, while modeling 6 million net subscriber additions during that time.
Also noted by Passi is RIM saying it is reducing its consumer access to its network operations facilities at a lower fee to carriers. If that was lowered by 10 percent for that monthly subscriber fee, it would lower EPS of Research in Motion by about 50 cents, concluded Passi.
To reach the EPS projection of $7.50, Passi said Rim will have to have a solid response from users from its new product line like Curve Touch, Storm 3, and Torch 2, as well as the Playbook tablet now on sale.
RIM was trading at $56.23, falling $0.80, or 1.40 percent, as of 1:10 PM EDT.
Friday, March 25, 2011
RIM (RIMM) Sucks Says Wall Street
Shares of Research In Motion Limited (Nasdaq: RIMM) are getting crunched Friday after mixed fourth-quarter results and disappointing first-quarter guidance.
The BlackBerry maker reported fourth quarter EPS of $1.78, $0.03 above the analyst estimate of $1.75. Revenue for the company jumped 36 percent to $5.6 billion for the quarter, compared to consensus of $5.63 billion.
While the fourth quarter was essentially in-line with what investors had expected, the important first-quarter forecast, which will see the launch of RIM's PlayBook tablet, was disappointing. RIM said it sees earnings of $1.47-$1.55 a share, missing the Street's view of $1.65 a share.
For the full year 2012, guidance was stronger. The company sees earnings over $7.50 a share, compared to the Street's outlook of $6.81. Although the company firmly gave this internal guidance, Wall Street is not convinced that it will achieve this number and believes it will have to come down. Even some of the most bullish RIM analysts see 2012 below this "aggressive" figure.
"With no QNX on handsets until CY12, we think RIM will likely continue to lose share to Android smartphones whose prices are rapidly falling," Detusche Bank analyst Brian Modoff said. "We believe fully-powered Android phones will be available for $100 by early 2012, and this will threaten RIM’s growth in all markets,"
RIM was trading at $57.01, falling $7.08, or 11.04 percent, as of 12:01 PM EDT.
Source
The BlackBerry maker reported fourth quarter EPS of $1.78, $0.03 above the analyst estimate of $1.75. Revenue for the company jumped 36 percent to $5.6 billion for the quarter, compared to consensus of $5.63 billion.
While the fourth quarter was essentially in-line with what investors had expected, the important first-quarter forecast, which will see the launch of RIM's PlayBook tablet, was disappointing. RIM said it sees earnings of $1.47-$1.55 a share, missing the Street's view of $1.65 a share.
For the full year 2012, guidance was stronger. The company sees earnings over $7.50 a share, compared to the Street's outlook of $6.81. Although the company firmly gave this internal guidance, Wall Street is not convinced that it will achieve this number and believes it will have to come down. Even some of the most bullish RIM analysts see 2012 below this "aggressive" figure.
"With no QNX on handsets until CY12, we think RIM will likely continue to lose share to Android smartphones whose prices are rapidly falling," Detusche Bank analyst Brian Modoff said. "We believe fully-powered Android phones will be available for $100 by early 2012, and this will threaten RIM’s growth in all markets,"
RIM was trading at $57.01, falling $7.08, or 11.04 percent, as of 12:01 PM EDT.
Source
Eastman Kodak (EK) Up on Apple, RIM (AAPL) (RIMM) Patent Talk
The probability Eastman Kodak (NYSE:EK) may get a windfall settlement with Apple (NASDAQ:AAPL) and Research in Motion (NASDAQ:RIMM) for patent infringement has shares of the stock jumping today.
According to CEO Antonio Perez, Eastman "deserves to win" in their patent suit with the two mobile media and communications giants.
Speculation is with Kodak winning recent patent suits against LG and Samsung, there is a good chance they'll win this one as well, with an announcement from the U.S. International Trade Commission coming later today.
At stake today is whether or not the Commission will review a judge's prior findings that Apple's iPhone and Research In Motion's BlackBerry don't violate Kodak's patent on an image- preview feature in camera phones.
The major source of revenue for Kodak in the future appears to be from licensing, which at this time drives from $250 to $350 million for them, and that doesn't include what they may get from Apple and Research In Motion.
Eastman was trading at $3.42, up $0.29, or 9.27 percent, as of 11:38 AM EDT.
According to CEO Antonio Perez, Eastman "deserves to win" in their patent suit with the two mobile media and communications giants.
Speculation is with Kodak winning recent patent suits against LG and Samsung, there is a good chance they'll win this one as well, with an announcement from the U.S. International Trade Commission coming later today.
At stake today is whether or not the Commission will review a judge's prior findings that Apple's iPhone and Research In Motion's BlackBerry don't violate Kodak's patent on an image- preview feature in camera phones.
The major source of revenue for Kodak in the future appears to be from licensing, which at this time drives from $250 to $350 million for them, and that doesn't include what they may get from Apple and Research In Motion.
Eastman was trading at $3.42, up $0.29, or 9.27 percent, as of 11:38 AM EDT.
Will Nokia (NOK) Surprise with Low Expectations?
Once the deal with Microsoft (NASDAQ:MSFT) was announced by Nokia to use Windows Phone 7 as its smartphone platform, they quickly went out of favor with investors, who had for some reason hoped they would have chosen Google's (NASDAQ:GOOG) Android as the platform of choice.
As expected, the shares of the company were punished, with short- and long-term expectations very low.
That may have set the company up for success for the long haul, as the quality of the phones they make hasn't changed and the Windows Phone 7 platform has been highly thought of by those trying it out.
And in the North American and most other mature markets, Nokia has nowhere to go but up with their smartphone sales, and any percentage gain of market share will help the company, while they continue to serve emerging markets with less robust, but not less important, phones.
Even if investors don't think Nokia will turnaround any time soon, they can enjoy the dividend yield of 5.4 percent while they wait.
Taking into account the love affair many users have with Apple (NASDAQ:AAPL) and Google in this sector, Nokia could be positioned to surprise, and it's highly probable that they do as the attention remains on these two companies, and to a lesser extent on RIM (NASDAQ:RIMM) and Motorola Mobility (NYSE:MMI).
Nokia closed Thursday at $8.45, gaining $0.07, or 0.84 percent.
As expected, the shares of the company were punished, with short- and long-term expectations very low.
That may have set the company up for success for the long haul, as the quality of the phones they make hasn't changed and the Windows Phone 7 platform has been highly thought of by those trying it out.
And in the North American and most other mature markets, Nokia has nowhere to go but up with their smartphone sales, and any percentage gain of market share will help the company, while they continue to serve emerging markets with less robust, but not less important, phones.
Even if investors don't think Nokia will turnaround any time soon, they can enjoy the dividend yield of 5.4 percent while they wait.
Taking into account the love affair many users have with Apple (NASDAQ:AAPL) and Google in this sector, Nokia could be positioned to surprise, and it's highly probable that they do as the attention remains on these two companies, and to a lesser extent on RIM (NASDAQ:RIMM) and Motorola Mobility (NYSE:MMI).
Nokia closed Thursday at $8.45, gaining $0.07, or 0.84 percent.
Research in Motion (RIMM) Sales 14.9 Million Smartphones in Q4
Research in Motion (NASDAQ: RIMM) had a decent quarter but was punished in after-hours trading on disappointing guidance.
Revenue in the fourth quarter came in at $5.56 billion, or $1.78 a share. Analysts had been looking for $5.64 billion in revenue and $1.76 a share.
The good news was the company sold 14.9 million BlackBerry smartphones, toward the top of its projected range. Gross profit beat at 44.2 percent of sales, surpassing the 43.6 percent reported in the fiscal third quarter.
Going forward, guidance was weak, with RIM projecting $5.2 billion to $5.6 billion in revenue and EPS of $1.47 to $1.55. Analysts have been looking for $5.64 billion and EPS of $1.65.
Investors didn't seem to be impressed with full year guidance ending February of 2012, where RIM sees EPS “in excess of” $7.50, well above the average of $6.81, after the guidance offered for the first quarter.
Research in Motion closed at $64.09, gaining $1.97, or 3.17 percent. In after-hours trading, as of 5 PM EDT, the company was getting punished, losing $6.72, or 10.48 percent.
Revenue in the fourth quarter came in at $5.56 billion, or $1.78 a share. Analysts had been looking for $5.64 billion in revenue and $1.76 a share.
The good news was the company sold 14.9 million BlackBerry smartphones, toward the top of its projected range. Gross profit beat at 44.2 percent of sales, surpassing the 43.6 percent reported in the fiscal third quarter.
Going forward, guidance was weak, with RIM projecting $5.2 billion to $5.6 billion in revenue and EPS of $1.47 to $1.55. Analysts have been looking for $5.64 billion and EPS of $1.65.
Investors didn't seem to be impressed with full year guidance ending February of 2012, where RIM sees EPS “in excess of” $7.50, well above the average of $6.81, after the guidance offered for the first quarter.
Research in Motion closed at $64.09, gaining $1.97, or 3.17 percent. In after-hours trading, as of 5 PM EDT, the company was getting punished, losing $6.72, or 10.48 percent.
Tuesday, March 22, 2011
RIM (RIMM) Now Taking Orders on PlayBook
Retailer Best Buy (BBY) announced it'll now be taking orders on Research in Motion's (Nasdaq:RIMM) tablet offering "Playbook," moving the share price up in early trading, although it has pulled back some as the day has gone on.
These are pre-orders being offered, as the BlackBerry PlayBook won't be available in stores until April 19 in the North American market.
Playbooks will be available in "Best Buy stores and Best Buy Mobile stores in the US, as well as Best Buy and Future Shop stores in Canada, on April 19, 2011," said the company.
You can go to the website of Best Buy and click on a link to pre-order the device.
Prices for Playbook are lower than originally put forth, starting off at $499.99 for a 16 gigabyte Wi-Fi model, and runs through $699.99 for the 64GB version. This is similar to the price being asked for for Apple's iPad 2 (NASDAQ:AAPL).
As the sale of Playbook rolls out, RIM said they have close to 20,000 retailers to distribute the tablet in North America.
Research in Motion was trading at $62.29, up $0.12, or 0.19 percent, as of 11:55 AM EDT.
These are pre-orders being offered, as the BlackBerry PlayBook won't be available in stores until April 19 in the North American market.
Playbooks will be available in "Best Buy stores and Best Buy Mobile stores in the US, as well as Best Buy and Future Shop stores in Canada, on April 19, 2011," said the company.
You can go to the website of Best Buy and click on a link to pre-order the device.
Prices for Playbook are lower than originally put forth, starting off at $499.99 for a 16 gigabyte Wi-Fi model, and runs through $699.99 for the 64GB version. This is similar to the price being asked for for Apple's iPad 2 (NASDAQ:AAPL).
As the sale of Playbook rolls out, RIM said they have close to 20,000 retailers to distribute the tablet in North America.
Research in Motion was trading at $62.29, up $0.12, or 0.19 percent, as of 11:55 AM EDT.
Blackberry (RIMM) Broken Says Sanford Bernstein
Citing the current strength in overseas sales shrinking, Sanford Bernstein analyst Pierre Ferragu said “BlackBerry (NASDAQ:RIMM) is a broken brand,” and maintains an "Underperform" on the company.
While he's looking for the company's next quarter to be good, as well as the 1st quarter afterwards, he sees full year revenue for RIM dropping to about $23.4 billion, under the consensus of $23.8 billion.
Revenue for the fourth quarter, expected to be reported on Thursday, is projected by Ferragu to reach the high end of RIM’s forecast for $5.5 billion to $5.7 billion.
Noting surveys from 2010 by Bernstein, Ferragu says only about 43 percent of Blackberry owners will continue on with the platform, in contrast to 92% of Apple (NASDAQ:AAPL) iPhone owners and 87% of owners of Google‘s (NASDAQ:GOOG) “Android“-based phones.
Research in Motion closed at $62.17 on Monday, gaining $1.26, or 2.07 percent.
While he's looking for the company's next quarter to be good, as well as the 1st quarter afterwards, he sees full year revenue for RIM dropping to about $23.4 billion, under the consensus of $23.8 billion.
Revenue for the fourth quarter, expected to be reported on Thursday, is projected by Ferragu to reach the high end of RIM’s forecast for $5.5 billion to $5.7 billion.
Noting surveys from 2010 by Bernstein, Ferragu says only about 43 percent of Blackberry owners will continue on with the platform, in contrast to 92% of Apple (NASDAQ:AAPL) iPhone owners and 87% of owners of Google‘s (NASDAQ:GOOG) “Android“-based phones.
Research in Motion closed at $62.17 on Monday, gaining $1.26, or 2.07 percent.
Monday, March 7, 2011
RIM (RIMM) Shockingly Loses Head of Marketing at Crucial Time
Research in Motion (NASDAQ:RIMM) has found itself without a marketing head just months before the release of its PlayBook tablet, as Keith Pardy will be leaving the company.
Pardy's sudden resignation has shaken up the company and shareholders, as it is only a few weeks before the PlayBook launch, and this throws the company a curve at a time when they needed stability.
The stated reason for Pardy leaving is "personal," according to RIMM.
Pardy will evidently stay with the company for six months to help with the transition.
Research in Motion closed Friday at $66.47, falling $1.98, or 2.89 percent.
Pardy's sudden resignation has shaken up the company and shareholders, as it is only a few weeks before the PlayBook launch, and this throws the company a curve at a time when they needed stability.
The stated reason for Pardy leaving is "personal," according to RIMM.
Pardy will evidently stay with the company for six months to help with the transition.
Research in Motion closed Friday at $66.47, falling $1.98, or 2.89 percent.
Thursday, March 3, 2011
Android (GOOG) Leads Apple (AAPL), RIM (RIMM) in U.S. Smartphone Sales
Google's (GOOG) Android operating system, when taken in aggregate, is leading U.S. sales for smartphones, according to Nielsen, with Apple’s (NASDAQ:AAPL) and Research in Motion’s (NASDAQ:RIMM) smartphones its closest competitors.
The period of time targeted by Nielsen was sales from November to January, and was for post-paid subscribers.
Android accounts for a 29 percent share in America, while Apple and Research in Motion are even at 27 percent share.
After that the competition falls off, with HTC having a 12 percent share, and Motorola Mobility’s (NYSE:MMI) and Microsoft (NASDAQ:MSFT) with their Windows Phone 7 having a 10 percent share each.
The period of time targeted by Nielsen was sales from November to January, and was for post-paid subscribers.
Android accounts for a 29 percent share in America, while Apple and Research in Motion are even at 27 percent share.
After that the competition falls off, with HTC having a 12 percent share, and Motorola Mobility’s (NYSE:MMI) and Microsoft (NASDAQ:MSFT) with their Windows Phone 7 having a 10 percent share each.
Monday, February 28, 2011
iPad 2 (AAPL) Ready to Take on RIM (RIMM), Motorola Mobility (MMI), Verizon (VZ), HP (HPQ), Dell (DELL)
RIM (NASDAQ:RIMM), Motorola Mobility (NYSE:MMI), Verizon (NYSE:VZ), HP (NYSE:HPQ) are all taking aim at Apple's (NASDAQ:GOOG) iPad, as the anticipated unveiling of the iPad 2 is set for Wednesday.
Research In Motion Ltd., maker of Blackberry, is expected to ship its PlayBook tablet in either March or April at a price-point close to the iPad, which starts at $499. The PlayBook's major selling point: it will have tighter security and integration with corporations' back-software.
Motorola Mobility Holdings Inc., meanwhile, just launched Xoom, a tablet that will support 4G, the next generation high-speed wireless network, through Verizon Wireless for $599 with a two-year contract.
Hewlett-Packard Co., Dell Inc. (NASDAQ:DELL), Motorola Mobility, and Toshiba Corp. are all also preparing tablets to launch in 2011.
Research In Motion Ltd., maker of Blackberry, is expected to ship its PlayBook tablet in either March or April at a price-point close to the iPad, which starts at $499. The PlayBook's major selling point: it will have tighter security and integration with corporations' back-software.
Motorola Mobility Holdings Inc., meanwhile, just launched Xoom, a tablet that will support 4G, the next generation high-speed wireless network, through Verizon Wireless for $599 with a two-year contract.
Hewlett-Packard Co., Dell Inc. (NASDAQ:DELL), Motorola Mobility, and Toshiba Corp. are all also preparing tablets to launch in 2011.
Wednesday, February 23, 2011
RIM (NASDAQ:RIMM) Says Unfairly Being Singled Out in India Says Company
Saying competitors like Nokia (NYSE:NOK), Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), Hewlett-Packard (NYSE:HPQ), Microsoft (NASDAQ:MSFT), and Cisco (NASDAQ:CSCO) aren't being scrutinized as they are, Research in Motion (NASDAQ:RIMM) is resisting some of the tough security measures India is attempting to pressure the company to adopt.
This centers around demands from the government of India for RIM to give it access to its enterprise service or encrypted emails, citing reasons of national security.
In a note to its enterprise customers, RIM said it "fully appreciates and supports the priority India rightly places on national security," adding since its competitors also use encryption in India, they too should be the subject of the Indian scrutiny.
RIM said encryption is the key to attracting and retaining business today, and that India will be hurt if they are forced to comply with the tough measures wanting to be put in place by the government.
Full Story
This centers around demands from the government of India for RIM to give it access to its enterprise service or encrypted emails, citing reasons of national security.
In a note to its enterprise customers, RIM said it "fully appreciates and supports the priority India rightly places on national security," adding since its competitors also use encryption in India, they too should be the subject of the Indian scrutiny.
RIM said encryption is the key to attracting and retaining business today, and that India will be hurt if they are forced to comply with the tough measures wanting to be put in place by the government.
Full Story
Thursday, February 17, 2011
Who Will Intel (INTC) Partner with on MeeGo After Nokia (NOK) Defection?
Now that MeeGo is dead for Intel (NASDAQ:INTC) as far as Nokia (NYSE:NOK) goes, the question is who will they find to replace them, now that Intel CEO Paul Otellini has gone on record as saying they will search for a new partner for the smartphone platform.
With the No.1 phone manufacturer Nokia gone, the next in line would be Samsung, the No. 2 phone manufacturer. They already have their own open source platform called Bada, so couldn't be in the running.
RIM (RIMM) and Apple (NASDAQ:AAPL) have their own platforms and aren't interesting in branching out, and most of the rest are going with Google's (NASDAQ:GOOG) Android as their smartphone platform of choice.
While there are a few potential candidates out there, why would they risk going with the rejected MeeGo when the line in the platform battle appear to have already been drawn.
Why would any company wanting to compete in the smartphone market choose a tiny ecosystem versus an already-established giant one?
Intel is in for a tough sell. And even if they find a partner, it's dubious as to what they could add to Intel, as they would almost assuredly be a very small player in the market.
With the No.1 phone manufacturer Nokia gone, the next in line would be Samsung, the No. 2 phone manufacturer. They already have their own open source platform called Bada, so couldn't be in the running.
RIM (RIMM) and Apple (NASDAQ:AAPL) have their own platforms and aren't interesting in branching out, and most of the rest are going with Google's (NASDAQ:GOOG) Android as their smartphone platform of choice.
While there are a few potential candidates out there, why would they risk going with the rejected MeeGo when the line in the platform battle appear to have already been drawn.
Why would any company wanting to compete in the smartphone market choose a tiny ecosystem versus an already-established giant one?
Intel is in for a tough sell. And even if they find a partner, it's dubious as to what they could add to Intel, as they would almost assuredly be a very small player in the market.
Dell (DELL), Research In Motion (RIMM) Electronic Arts (ERTS), AMD (AMD), Yahoo (YHOO), Nvidia (NVDA) Drive Techs Higher
Wednesday was a good day for tech stocks, driven by Dell (NASDAQ:DELL), Research In Motion (NASDAQ:RIMM) Electronic Arts (NASDAQ:ERTS), AMD (NYSE:AMD), Yahoo (NASDAQ:YHOO) and Nvidia (NASDAQ:NVDA).
Dell's upward move was expected after it reported a surprisingly strong quarter. Nvidia jumped on expectations of its quarterly results which were reported after hours.
Research in Motion got a boost from Citigroup (NYSE:C), which upgraded the stock a couple of notches from "Sell" to "Buy."
Electronic Arts Inc. was driven by the promising pipeline revealed by CEO John Riccitiello at a Goldman Sachs conference. He said the company should gain market share on major rival Activision Blizzard Inc. (ATVI).
AMD and Yahoo seemed to rise with the broader tech sector, although the moves they made were strong. Hewlett-Packard Co. (HPQ) also ended the trading session solid.
Dell's upward move was expected after it reported a surprisingly strong quarter. Nvidia jumped on expectations of its quarterly results which were reported after hours.
Research in Motion got a boost from Citigroup (NYSE:C), which upgraded the stock a couple of notches from "Sell" to "Buy."
Electronic Arts Inc. was driven by the promising pipeline revealed by CEO John Riccitiello at a Goldman Sachs conference. He said the company should gain market share on major rival Activision Blizzard Inc. (ATVI).
AMD and Yahoo seemed to rise with the broader tech sector, although the moves they made were strong. Hewlett-Packard Co. (HPQ) also ended the trading session solid.
Nokia (NOK) Chairman Says Nokia Windows (MSFT) Products Ready in 2012
While Nokia (NYSE:NOK) and Microsoft (NASDAQ:MSFT) are working feverishly to get a smartphone out using the Windows Phone 7 platform in time for the Christmas season, Nokia chairman Jorma Ollila said in an interview the company will definitely have smartphones out by 2012.
Talking with Finnish broadcaster YLE, Ollila said, "These Windows-based products (will be available) from 2012 onwards."
Ollila confirmed what Nokia CEO Stephen Elop has asserted, that there were a number of suitors Nokia could have chosen from.
Google (GOOG) and RIM (RIMM) have already said they had been talking with Nokia, with Google aggressively pursuing the partnership. RIM allegedly rejected doing a deal, although that hasn't been completely confirmed.
According to Ollila, there has been no pressure from shareholders to oust Elop, although a few malcontents have attempted to make some waves.
It's doubtful anything will be done with Elop until the end of 2012, or at least until half-way through the year. At that time there will be a better picture on how the deal is playing out.
Much will be determined on the dates the first products are released and how they fare. That'll take some time to work out.
Nokia closed Wednesday at $9.10, up $0.03, or 0.33 percent.
Talking with Finnish broadcaster YLE, Ollila said, "These Windows-based products (will be available) from 2012 onwards."
Ollila confirmed what Nokia CEO Stephen Elop has asserted, that there were a number of suitors Nokia could have chosen from.
Google (GOOG) and RIM (RIMM) have already said they had been talking with Nokia, with Google aggressively pursuing the partnership. RIM allegedly rejected doing a deal, although that hasn't been completely confirmed.
According to Ollila, there has been no pressure from shareholders to oust Elop, although a few malcontents have attempted to make some waves.
It's doubtful anything will be done with Elop until the end of 2012, or at least until half-way through the year. At that time there will be a better picture on how the deal is playing out.
Much will be determined on the dates the first products are released and how they fare. That'll take some time to work out.
Nokia closed Wednesday at $9.10, up $0.03, or 0.33 percent.
Wednesday, February 16, 2011
Citigroup (C) Sees Nokia's (NOK) Decision Helping RIM (RIMM) in Short Term
Saying carriers will transfer their promotions from Nokia (NYSE:NOK)smartphones to Research in Motion Ltd. (NASDAQ:RIMM) smartphones in response to their decision to go with Microsoft's (NASDAQ:MSFT) Windows Phone 7 platform, Citigroup (NYSE:C) upgraded RIM from "Sell" to "Buy."
Citigroup analyst Jim Suva said, “This promotion commotion shift away from Nokia to other OEMs … will take center stage as Nokia loses share in the quarters ahead. While RIM’s market share has seen some pressure of the last two quarters due to Android, we nonetheless believe that RIM should be able to capitalize on a confusing Nokia strategy.”
While Nokia and Microsoft are working on releasing their first phone, it leaves what Suva identifies as a “multi-quarter gap in Nokia products and carrier promotion support."
Consequently, RIM should get an unexpected boost in business during that period.
Suva increased his price target on RIM to $80.
Citigroup analyst Jim Suva said, “This promotion commotion shift away from Nokia to other OEMs … will take center stage as Nokia loses share in the quarters ahead. While RIM’s market share has seen some pressure of the last two quarters due to Android, we nonetheless believe that RIM should be able to capitalize on a confusing Nokia strategy.”
While Nokia and Microsoft are working on releasing their first phone, it leaves what Suva identifies as a “multi-quarter gap in Nokia products and carrier promotion support."
Consequently, RIM should get an unexpected boost in business during that period.
Suva increased his price target on RIM to $80.
Thursday, January 27, 2011
Verizon Communications (NYSE:VZ) Says Apple's iPhone (NASDAQ:AAPL) Accretive to Earnings This Year
Verizon Communications (NYSE:VZ) shocked the market when they said Apple's iPhone (NASDAQ:AAPL) will be accretive to earnings this year.
Canaccord says, "Verizon added just shy of a million subscribers in the latest quarter, affirming its position as the nation’s biggest carrier. The company said that a record number of subscribers were purchasing smartphones, with more than 75% of post-paid additions choosing devices running on the Google (Nasdaq:GOOG) Android or RIM (Nasdaq:RIMM) BlackBerry platforms. Strong growth in smartphones and the wireless business fuelled sales of $16.1 billion and net income of $4.6 billion. Notably, data sales stood at $5.3 billion as many of the new subscribers opted for expensive plans. 'The fourth quarter capped a strong second half of the year, resulting in improved earnings, solid momentum and an even stronger balance sheet,' summed Chairman and CEO Ivan Seidenberg. 'Verizon Wireless produced another quarter of impressive growth, with record-high profitability, as we continue to drive higher smartphone adoption and data use.' The results missed expectations on a few metrics, but investors seemed content, instead focusing on prospects surrounding the Apple (AAPL) iPhone 4, which will be offered by Verizon starting February 10. The company surprised the Street by predicting that the iPhone will be accretive to earnings this year – most had expected the device to pressure margins given the large subsidies Verizon will have to pay out. Some of the help may come from the carrier’s steps to limit its upgrade program and shorten its return window as part of the launch. The carrier may also be counting on luring customers from AT&T (NYSE:T) with the promise of cheap data plans, as management affirmed they would continue offering a $30-per-month unlimited plan to those who buy the iPhone at launch."
Verizon closed Wednesday at $36.40, gaining $0.61, or 1.70 percent. Apple closed at $343.85, gaining $2.45, or 0.72 percent.
Canaccord says, "Verizon added just shy of a million subscribers in the latest quarter, affirming its position as the nation’s biggest carrier. The company said that a record number of subscribers were purchasing smartphones, with more than 75% of post-paid additions choosing devices running on the Google (Nasdaq:GOOG) Android or RIM (Nasdaq:RIMM) BlackBerry platforms. Strong growth in smartphones and the wireless business fuelled sales of $16.1 billion and net income of $4.6 billion. Notably, data sales stood at $5.3 billion as many of the new subscribers opted for expensive plans. 'The fourth quarter capped a strong second half of the year, resulting in improved earnings, solid momentum and an even stronger balance sheet,' summed Chairman and CEO Ivan Seidenberg. 'Verizon Wireless produced another quarter of impressive growth, with record-high profitability, as we continue to drive higher smartphone adoption and data use.' The results missed expectations on a few metrics, but investors seemed content, instead focusing on prospects surrounding the Apple (AAPL) iPhone 4, which will be offered by Verizon starting February 10. The company surprised the Street by predicting that the iPhone will be accretive to earnings this year – most had expected the device to pressure margins given the large subsidies Verizon will have to pay out. Some of the help may come from the carrier’s steps to limit its upgrade program and shorten its return window as part of the launch. The carrier may also be counting on luring customers from AT&T (NYSE:T) with the promise of cheap data plans, as management affirmed they would continue offering a $30-per-month unlimited plan to those who buy the iPhone at launch."
Verizon closed Wednesday at $36.40, gaining $0.61, or 1.70 percent. Apple closed at $343.85, gaining $2.45, or 0.72 percent.
Tuesday, January 25, 2011
RIM (NASDAQ:RIMM) Tablet Sales Could Reach 6 Million Units First Year
According to RBC Capital analyst Mike Abramsky, Research in Motion (NASDAQ:RIMM) could reach tablet sales of 6 million units in their first year, far above the 1 million units a number of analysts have estimated.
He bases his assertion on a proprietary survey of 1,100 customers, which revealed about 6 percent of respondents said they were apt to acquire a Playbook from RIM.
Noted was the ability of the Playbook to interact with the Blackberry, something consumers like about it.
Assuming an average price of $450, RBC said it could add $1.8 billion in revenue to the company.
RBC has a "Top Pick" rating on RIM, which was trading at $61.11, down $1.58, or 2.52 percent, as of 2:08 PM EST. RBC has a price target on RIM of $90.
He bases his assertion on a proprietary survey of 1,100 customers, which revealed about 6 percent of respondents said they were apt to acquire a Playbook from RIM.
Noted was the ability of the Playbook to interact with the Blackberry, something consumers like about it.
Assuming an average price of $450, RBC said it could add $1.8 billion in revenue to the company.
RBC has a "Top Pick" rating on RIM, which was trading at $61.11, down $1.58, or 2.52 percent, as of 2:08 PM EST. RBC has a price target on RIM of $90.
Apple (NASDAQ:AAPL) iPhone Gets Deutsche Bank (NYSE:DB) Business, BlackBerry (NASDAQ:RIMM) Dropped
Deutsche Bank Equity Research (NYSE:DB) has dropped the BlackBerry (NASDAQ:RIMM) in favor of Apple's iPhone (NASDAQ:AAPL).
The decision was made after the company gave the iPhone a trial run using the secure email application from Good Technology.
Deutsche Bank research analyst Chris Whitmore said, "In aggregate, we found the iPhone UI was very usable and the touch-less vs. physical keyboard debate is a function of personal preference and perhaps ‘fatness of fingers.’ Versus the Blackberry trackball, the iPhone interface is vastly superior is terms of speed and accessibility and prioritizing key emails and we view the Blackberry trackball as archaic and cumbersome."
Deutsche also noted that the Apple App Store was a "huge competitive differentiator" during the trials.
Concerning the sale of iPhones and iPads, Whitmore said Deutsche is "modeling CY11 iPhone units of 67M and 30M iPads which we view as conservative in light of the upcoming Verizon launch, iPhone 5 and iPad 2 in the next 6 months. Apple remains a top pick and we reiterate our Buy rating."
For Research in Motion, it'll be a major blow if corporate customers flee the company and move to the iPhone.
Apple was trading at $339.28, up $1.83, or 0.54 percent, as of 1:37 PM EST.
The decision was made after the company gave the iPhone a trial run using the secure email application from Good Technology.
Deutsche Bank research analyst Chris Whitmore said, "In aggregate, we found the iPhone UI was very usable and the touch-less vs. physical keyboard debate is a function of personal preference and perhaps ‘fatness of fingers.’ Versus the Blackberry trackball, the iPhone interface is vastly superior is terms of speed and accessibility and prioritizing key emails and we view the Blackberry trackball as archaic and cumbersome."
Deutsche also noted that the Apple App Store was a "huge competitive differentiator" during the trials.
Concerning the sale of iPhones and iPads, Whitmore said Deutsche is "modeling CY11 iPhone units of 67M and 30M iPads which we view as conservative in light of the upcoming Verizon launch, iPhone 5 and iPad 2 in the next 6 months. Apple remains a top pick and we reiterate our Buy rating."
For Research in Motion, it'll be a major blow if corporate customers flee the company and move to the iPhone.
Apple was trading at $339.28, up $1.83, or 0.54 percent, as of 1:37 PM EST.
Kodak (NYSE:EK) Drops on Apple (NASDAQ:AAPL), RIM (Nasdaq:RIMM) Ruling
Shares of Kodak (NYSE:EK) were getting hit hard in after hours trading when news they were ruled against by the U.S. International Trade Commission concerning their patent complaint against Apple (NASDAQ:AAPL) and RIM (Nasdaq:RIMM).
The complaint revolves around whether or not Apple and Research in Motion violated digital-imaging patents held by Kodak.
This initial ruling isn't binding yet, and by May 23 the six commissioners could modify the ruling of chief administrative law judge Paul Luckern, or let his ruling stand.
Laura Quatela, Kodak's chief intellectual property officer, said she believes the company will eventually prevail, saying "We fully expect the ITC commission will ultimately rule that the patent claim at issue is valid and infringed by Apple and RIM."
Kodak has won previous cases against LG Electronics and Samsung, where they negotiated one-time combined royalty payments of almost $1 billion.
Kodak closed Monday at $5.22, gaining $0.07, or 1.36 percent.
The complaint revolves around whether or not Apple and Research in Motion violated digital-imaging patents held by Kodak.
This initial ruling isn't binding yet, and by May 23 the six commissioners could modify the ruling of chief administrative law judge Paul Luckern, or let his ruling stand.
Laura Quatela, Kodak's chief intellectual property officer, said she believes the company will eventually prevail, saying "We fully expect the ITC commission will ultimately rule that the patent claim at issue is valid and infringed by Apple and RIM."
Kodak has won previous cases against LG Electronics and Samsung, where they negotiated one-time combined royalty payments of almost $1 billion.
Kodak closed Monday at $5.22, gaining $0.07, or 1.36 percent.
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