BlackBerry Maker Will Survive with 'New' Offerings: Analyst
Research in Motion dispatches its first-quarter earnings Thursday after the bell. Mike Abramsky, RBC Capital Markets analyst, shared his optimism about RIM's survival in the consumer market.
Although consumers have "raised enormous concerns" about the user experience of RIM's technology, including the Blackberry, the company is ready to make improvements, Abramsky told CNBC.
"It is true that RIM has lagged in terms of user experience and that has raised enormous concerns, which obviously have weighed on its share price," Abramsky said.
"But they are poised to address some of the gaps in those experiences starting with new software, new products."
As RIM's earnings and Apple's iPhone 4 simultaneously go public Thursday, the concern is whether RIM will sell out just as the Palm did to HP. Abramsky said "there's an entirely different equation at work."
"I don't think RIM is like Palm," Abramsky said. "Palm had scale challenges. Rim's carrier distribution is 550 carriers. Palm only had 5. Palm only shipped about 2 million smartphones. RIM will ship 50."
But competitors such as the iPhone and Android will pose a "threat" if doesn't address the gaps in user accessibility, Abramsky said.
"RIM has to get improvements to its browsing experience, its app experience, and new devices out there—all of which are coming—that will retain to its particular consumers," he added.
Scorecard—What He Said:
- Abramsky's Previous Appearance on CNBC (April 1, 2010)
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Disclosures:
RBC Capital Markets makes a market in the securities of Research in Motion.