As Research in Motion (Nasdaq: RIMM) readies for release of its PlayBook tablet, analysts and tech observers weighed in this weekend on the product’s chances to turn the company back in a positive direction. On the skeptical side…
Jean-Louis Gassee, partner at Allegis Capital and tech veteran, thinks RIM management has simply gone mad:
RIM is scrambling to gate a tablet to market “before it’s too late”…Reacting quickly, not wanting Apple to gain too much of a market stronghold makes business sense. But launching what is clearly an immature product and trying to compensate for a dearth of applications with a misleading claim of compatibility with the wrong version of Android is insane.
At PaidContent, Tom Krazit makes altogether unflattering comparisons to Palm and concludes:
It’s impossible to completely write off a company that still has sizable market share and profits, as well as a recognizable brand. But it’s also impossible to argue that RIM is on the cusp of turning its fortunes around: the Playbook is simply not compelling enough compared to either the iPad 2 or even the Xoom to be recognized in the mass market, and developers aren’t willing to help make up the difference.
But ZDNet’s Larry Dignan finds that these RIM obits are a bit premature:
Add it up and expectations are very low for RIM and its PlayBook. And that typically spells opportunity. Remember this: All RIM has to do is defend its enterprise turf with the PlayBook and the tablet will be a success. Apparently no one thinks RIM can rebound except for Balsillie. If he’s right this time RIM will be a big surprise. If Balsillie is delusional, the company will continue to live off of its international sales and its enterprise installed base. Many companies would take RIM’s worst case scenario any day.
As of end of day 3/25, three Covestor models are long RIMM:
- Bluenose, from GEARS
- Bottom Up Analysis Aggressive, from Epic Advisors
And one is short RIMM:
- Bottom Up Analysis, from Epic Advisors
