Blackberry's market share declining faster than expected
19 Sep 2011
Research In Motion's market share is declining much faster than expected, not only in the US but globally, even as concerns mount over its cash flow and ability to meet outlook, analysts warned on Friday.
The shares of the Nasdaq-listed company were down about 21-per cent in pre-market trading. On Thursday the company posted a steep drop in quarterly profit, painting a dismal picture for the current quarter. It said it expected to reach only the lower end of an already reduced full-year outlook.
While investors bullish on RIM have long looked to international growth to offset reverses in North America, this quarter largely failed to offer any comfort with international revenues now also seen to be declining sharply according to Goldman Sachs analyst Simona Jankowski, in a note to clients.
Revenue from international operations for the second quarter apart from the UK, slowed 15 per cent as against the previous quarter -- confirming that the decline in RIM's market share was not limited to US and UK markets.
RIM's BlackBerry, synonymous with corporate communication and once a byword for its immediacy as a corporate communication tool has yielded place to Apple's iPhone and devices running Google's Android software.
According to Goldman's projections RIM's global market share declined to 9 per cent in the second quarter from 16 per cent a year ago.
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