Main reason why stocks got under selling pressure were lower forecast for current quarter. And also gross margin that has lowered to 47% from 51.3%. You remember the same problem came for Apple (AAPL). Gross margin was 34.8%, down from 34.8%.
Last significant price drop and still robust earnings growth (72%) make attractive valuation based on PEG ratio. RIM PEG = 0.98 vs AAPL PEG = 4.13.
In first half of 2008 total smart-phones sales are up 22% compared to 2007. All markets have increased except of Japan where the sales drop 4.8%. RIM posted the biggest market share increase which currently accounts 17.4%. Nokia is still leader with 47.5%. You can see sales growth and market share after first quarter in my previous post. Smart-phone market recently joined Google. Google's Android which like Apple's IPhone can't be considered as a real the competition as RIM business devices are primarily targeted to corporate clients.
Many new models to be launched till end of the year. Much-anticipated Bold launch in US could come later this. Bold is already on sale in Europe and in Canada. First flip-phone called BlackBerry Pearl Flip. And non-officially touch-screen device. Also the Storm and a mini-Bold called the Javelin are all on the way.
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We were telling traders that the analysis were wrong on RIMM when they were telling everyone to buy at $120.