Research In Motion: Don't Jump On The BB10 Bandwagon Yet

The smartphone market is not in its formative stages anymore. Google's (GOOG) Android and Apple's (AAPL) iOS are the leading operating systems in this competitive market. Microsoft recently launched its Windows 8 and WP8 in a bid to create a universal eco-system which is consistent across various devices. The reception of WP8 and Windows 8 has been lukewarm so far. It remains to be seen if it can give Android a run for its money. If we analyze competition among operating systems, the only competitors for RIMM are Android and Windows based devices. This is because, the second largest smartphone operating system-iOS, is limited only to Apple based devices. Therefore, any new venture of Research in Motion (RIMM) would face challenges from Android and Windows 8.

The future of RIMM is still uncertain. The new BB10 is user-friendly and there have been positive developments on the applications front. However, the high competition in this sector warrants that no long-term decision be made before initial sales figures come in. In the short run, investors can make money from the launch event because we believe the stock will see an upside as the launch date approaches. We are giving a hold rating for long-term investors until sales numbers for devices using BB10 are revealed.

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