RIM Expects Recovery from Recent Rough Sales Patch

RIM Expects Recovery from Recent Rough Sales PatchThere are rising expectations that US consumers would be looking to have BlackBerrys and PlayBooks soon, as the Research in Motion has trimmed-down its price for the PlayBook. However, market analysts think otherwise, as there is near consensus that RIM would have tough time against rival devices from Apple Inc. and Google Inc.

It has been told that Mike Abramsky at RBC Cap-ital Markets, one of RIM's biggest supporters earlier, has reduced the target price of the stock to US$23 from US$29 and even estimates for earnings per share (EPS) and revenue are being kept low.

The makers have had tough time recently when their services got disrupted in October and consumers had been outraged with this. This has not only affected consumers trust on the makers but it has given bad name to the repute of the company in the international market. Sales of the products are told to be facing stiff competition from Apple's new iPhone 4S and Google's Android.

If National Bank Financial analyst Kris Thompson is to be believed: estimate for EPS would be somewhere close to $4.70, though it could come down in the time to come.

Owing to some recent developments, market analysts gave flick of hope to the makers and the shares were seen rising by mere 7%.

"While RIM's devices have been marginalized at the enter-prise, the company continues to sell them even in the face of a complete operating system make-over which raises the spectre of making obsolete all previous consumer application (app) investment", said Brigantine Advisors analyst Kevin Dede.

Though the sales of BlackBerry were jolted in Q2, it has been told that sales have gone stable now. If report from market research firm Canalys is to be referred, shares of the smart-phone have gone down by 9% in the most recent quarter while it suffered a loss of 24% in its share value last year.