Monday, December 26, 2005

RIM has challenges outside the courtroom

Investor's Business Daily writes that Research in Motion's troubles are not confined to the courtroom. The company is still experience strong profit and sales growth, but recently "cut its subscriber growth forecast for the current quarter" the fourth time in three quarters.

Noting the entry of players, such as Nokia and Motorola into the market, Neil Strother at NPD Group said, "There will be a lot more competition in smart phones next year."However, RIM should be well-postioned due to new and expanded deals, Strother added. "The pie will get bigger, and they'll benefit from that."

As more handsets enter the market that work on standard Windows servers, Strother stated, "It's a question we just don't know the answer to: when will RIM suffer for its proprietary approach?"