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RIM expectations lowered, BlackBerry OS7 demand slow?

RIM expectations lowered, BlackBerry OS7 demand slow?

by Nirave26 March 2012

We know that RIM is set to deliver their Q4 fiscal results this week on Thursday but how will they do?

According to Barclays Capital’s Jeff Kvaal, RIM’s OS7 device have experienced slow growth and demand:

“Our checks indicate that current demand is poor: BlackBerry 7 devices are now close to six months old, and our checks suggest that the initial enthusiasm post launch has tailed off,” the analyst wrote. “We model 11 million unit volumes in FYQ4, at the low end of the guidance range. Management’s aggressive marketing campaign, targeted for the U.S., appears not to have been as effective as hoped. BlackBerry 7 devices remain expensive comparatively and the once popular 8520 is going end of life.”

I personally don’t agree as RIM’s BlackBerry Bold 9900 has captured the hearts and money of UK consumers. I know of a lot of consumers (both pre-existing and new to the BlackBerry platform) who have the 9900; it definitely has some quirky downsides but is a very good device as our Dani touched on.

Barclays Capital’s Jeff Kvaal may indeed be right, but in the UK, the sheer number of people using Bold 9000’s and other OS7 devices is definitely a positive for the Canadian manufacturer.


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