Things getting worse at RIM... Morgan Stanley
February 14, 2012
Research In Motion Ltd.
Low’rg Ests as Sell-Thru Gets
Sluggishier and Sluggishier
Lowering FQ4’12 and FY13 estimates based on
checks indicating orders from Asian suppliers fell
sharply in Jan and at best remain flat in Feb as
sell-through remains weak, esp in North Am as
iPhone and Android devices continue to gain share.
Checks from our colleagues in Asia indicate RIM’s
supply chain orders slid 45% m/m in Jan and are
expected to be flat in Feb, implying CQ1 units could be
down 30% q/q as sell-through is weak. We have picked
up mounting anecdotal evidence that RIM continues to
lose momentum given its lack of major new phone
launches until BB10 devices come out in “latter 2012,”
while news flow indicates enterprises from Halliburton to
U.S. agencies are adopting alternative devices.