Citigroup’s Jim Suva has issued a statement to clients claiming RIM’s last quarter of 2008 will be their first quarter-over-quarter net loss, as a result of (get this) enterprise sales lag. RIM’s hurting in their strongest target market?
“Our recent checks show continued strength with the consumer, but some softness within enterprise,” the analyst told clients. “While enterprise softness should not be completely unexpected given the current environment, it is nonetheless a factor which we believe is under-appreciated by consensus.”
Despite RIM surpassing subscriber estimates by 20%, hardware margins will be sitting at a steady US$3.3-billion to US$3.5-billion. Is it possible that recession worries are putting this big of a dent in RIM’s bottom line? Sure, subscribers are up, but that could easily be a result of companies recycling old handsets; it’s to be expected that fewer execs will get the shiniest and newest BlackBerrys. RIM will be announcing their Q4 results on April 2, so we’ll just have to wait and see if Mr. Suva’s dour forecast pans out.
[via National Post]