Bear Stearns analyst Andy Neff downgraded Research In Motion from "Peer Perform" to "Underperform," noting the saturation of the mobile email market and a slowing growth rate. Of course, the NTP litigation played a role in slowing demand for RIM's products, but Neff suggests that the potential uptake following the trial is dependent on the price of the service and handset. RIM plans to target these issues with new products for the consumer that include an MP3 player, camera and similar consumer class functionality. However, the analyst remains skeptical that RIM can adeptly target a new user after its previous branding for the enterprise, and this new user segment probably brings lower profit margins anyway.
For more on RIM's business strategies:
- take a look at this blog entry