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In an exciting bit of news for early adopters north of the border, the new BlackBerry Bold smartphone from Research In Motion Limited (NASDAQ: RIMM) is slated to hit Canadian shelves this Thursday, August 21. Because RIMM has signed service pacts with various wireless carriers in different regions, the Bold is being rolled out gradually around the globe. The snappy new device has already launched in Germany, but U.S. carrier AT&T (NYSE: T) is so far keeping mum about its plans for the Bold's Stateside debut.
The latest addition to the CrackBerry family is aimed toward business users; as proof, even Rupert Murdoch is getting in on the act. The Wall Street Journal Digital Network announced today that it's launched a new mobile application to provide immediate access to headlines in the WSJ family of financial publications (including Barron's, MarketWatch, and All Things Digital). The application is available for free on most BlackBerry smartphones.
Naturally, the Bold has already garnered comparisons to Apple's (NASDAQ: AAPL) iPhone -- but there are a few notable differences. While Jobs & Co. are slowly trying to make headway into the corporate world, their core audience is still top-heavy with tech-gadget completists and trust-fund hipsters. Meanwhile, BlackBerry's already in business with business, and the new WSJ app is just an extra boost of its Street cred.
Another key difference? The relative lack of hype about the Bold. This could be a function of the new BlackBerry's nebulous launch date; by contrast, Apple prefers to pre-announce its release dates months in advance (how else would early adopters know when and where to set up their tents and lawn chairs?).
From a contrarian standpoint, the lack of pre-release Bold-mania is a positive for RIMM. As long as Wall Street's expectations remain in check, there's plenty of opportunity for the company to surpass those modest hopes. There's also room for pessimism to unwind, which means more buyers could rush to the table and perpetuate the stock's long-term uptrend.
For example, as we approach the (potential) U.S. release date of the Bold, RIMM shares are resting modestly atop long-term support from their 10-month moving average. Despite the solid price action, short sellers and option players prefer bearish bets on the handset maker. Short interest swelled by more than 7% during the most recent reporting period, and puts outnumber calls among options slated to expire within 3 months.
Plus, the latest data from NPD Group is bullish on the BlackBerry's fundamentals. While cell-phone unit sales fell 13% during the second quarter, sales of fully loaded smartphones nearly doubled during the period. RIMM even managed to ramp up its market share during the quarter -- and this data doesn't include corporate buyers, which indicates the numbers could be even more robust.
With sector-leading sales figures and a long-term uptrend on the charts, RIMM continues to impress. As smaller handset makers struggle, now might be the time to jump on the sophisticated smartphone bandwagon.
Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the weekly video series Option Basics on SchaeffersResearch.com.
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Reader Comments (Page 1 of 1)
8-19-2008 @ 2:54PM
Beltway Greg said...
Isn't Canadian Thanksgiving Oct. 1?
This post will be very tasty served with lots of gravy to help choke it down.
Bon Appetite.
Beltway Greg
8-19-2008 @ 2:57PM
jcdm said...
Sounds kinda like the old Yogi Berra comment, "it's so crowded, nobody goes there anymore."
The Bold is so great, the lack of hype is the hype.
Ummm sure, whatever you say.
8-19-2008 @ 3:24PM
realitybites said...
Elizabeth,
I'm sorry,
What you meant to say is that like all RIMM products, this will be adequate, nothing too flashy, nothing innovated, perfectly following the RIMM motto...If we could build beige, text only, Blackberries, we would.
No hype? Nothing to talk about.
8-19-2008 @ 3:39PM
Mike said...
Blackberry (bold or not) is not in the same league as the iPhone. They are geared at different markets and their priorities are completely different.
I don't know anyone who proudly exclaims that they're listening to music or watching video on their Blackberry. First and foremost, it's a corporate e-mail and contact device. Everything else is secondary.
iPhone? Priorities are music, multimedia, and personal calls... corporate e-mail is quite a bit lower on the totem pole.
Comparing the two is like comparing Apples and Oranges (no pun intended).
8-20-2008 @ 11:35AM
maggie's farmboy said...
"I don't know anyone who proudly exclaims that they're listening to music or watching video on their Blackberry."
Buddy, if you are bragging about doing that, or anything else, on your iphone, you seriously need to get a life.
8-28-2008 @ 4:26AM
Fommy India said...
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9-06-2008 @ 3:00AM
jvon said...
"I don't know anyone who proudly exclaims that they're listening to music or watching video on their Blackberry."
Oddly, this is EXACTLY why I am seriously considering buying one.