NYT loves Apple's iPhone
The New York Times ran a long review of Apple’s newest product this am, with descriptions such as:
– “so sleek and thin, it makes Treos and BlackBerrys look obese”
– “fast, beautiful, menu-free, and dead simple to operate”
– “unlimited Internet service adds only $20 a month to AT&T’s voice-plan prices, about half what BlackBerry and Treo owners pay”
A few months ago, when Steve Jobs did a soft release of the phone, we featured a note from Chris Umiastowski. Chris is TD Newcrest’s hardware analyst (covers Research in Motion, RIM:TSX) and he dismissed the idea that the iPhone would have much of an impact on RIM, other than stunt sales in the consumer marketplace.
Fair enough, but the Blackberry Pearl seemed so much fresher back in January.
And although RIM’s shares have rallied $25 (17%) since TD’s analysis was released in January, the $8 selloff over the past few days can partly be attributed to the pending iPhone launch. Momentum investors (read: hedge funds) don’t like headline risk. And reading in their newspaper this am that people are starting to line up for a cellphone that won’t be available for another 2 full days will scare them a bit.
And so it should.
While the Canadian consumers that I know who’ve bought the new RIM Curve are happy with it, they didn’t have the chance to buy an iPhone. And likely won’t for many months to come. Whether or not RIM’s growth in the consumer vertical slows, the stock will certainly respond to the brewing excitement surrounding Apple’s successful product execution.
Which may provide another entry point to RIM’s stock for those of us that mistakenly sold it many years ago. (To finance a kitchen reno, mind you, not ’cause I didn’t like my handset or the company’s prospects. Turned out to be a very expensive kitchen as RIM is up many fold since circa 2003.)