Mike Lazaridis, former co-CEO of Research In Motion
Apple Inc. shares have been retreating a little since the company unveiled its last software and products at a developers conference this week - but its impact on competitors has been far more severe.
Take Research In Motion Ltd. : The BlackBerry maker was down on Wednesday afternoon, continuing a four-day slide as the shares explore the lows hit during the financial crisis and recession more than two years ago. On Wednesday, two more analysts trimmed their target prices on the stock. Berenberg Bank cuts its target to $30 (U.S.) from $44 and maintained a "sell" recommendations. Gleacher & Company cut its target to $43 from $56 and maintained a "neutral" recommendation.
The moves follow Tuesday's revision by Morgan Keegan, which cut its target on RIM to $49 from $71 and also switched its recommendation to "market perform" from "outperform."
The outlook on RIM has been noticeably glum ever since the company issued a profit warning at the end of April for its upcoming quarterly report - a move that sent the shares falling 14 per cent in New York in a single day. This month, Nokia added to the company's woes when it issued a profit warning of its own, citing rising competition.
Investors are growing convinced that any non-Apple, non-Android smartphone is heading into the dustbin of history. The latest round of analyst cuts seems to support these fears: They point to the Apple's upcoming iMessage as a direct threat to RIM's BlackBerry Messenger service.
David Berman