http://digitaldaily.allthingsd.com/20090211/blackberry-storm-press-and-be-depressed/ by John Paczkowski Fri, 10 Feb 2012 13:27:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://digitaldaily.allthingsd.com/20090211/blackberry-storm-press-and-be-depressed/comment-page-1/#comment-5209 BlackBerry Storm 9500 World Phone, Unlocked, In Hand, Ready to Ship | The Best Offers Around Mon, 16 Feb 2009 21:47:49 +0000 http://digitaldaily.allthingsd.com/?p=12852#comment-5209 [...] Taking Ad.. Free BlackBerry Storm App of the Day Poynt - Gets 2 The Point - WIRELESS AN.. BlackBerry Storm: Press and Be Depressed? | John Paczkowski | Digital Daily.. Latest Gadget: Blackberry Storm | Latest On SEO Auto World Gadgets Website.. BlackBerry Storm: [...] [...] Taking Ad.. Free BlackBerry Storm App of the Day Poynt – Gets 2 The Point – WIRELESS AN.. BlackBerry Storm: Press and Be Depressed? | John Paczkowski | Digital Daily.. Latest Gadget: Blackberry Storm | Latest On SEO Auto World Gadgets Website.. BlackBerry Storm: [...]

]]> http://digitaldaily.allthingsd.com/20090211/blackberry-storm-press-and-be-depressed/comment-page-1/#comment-5108 Bill Carlin Wed, 11 Feb 2009 19:15:48 +0000 http://digitaldaily.allthingsd.com/?p=12852#comment-5108 John - you've got it reversed. The lower margin is consistent with the idea that RIM's product mix during the quarter was heavier with new products like the Storm and Bold. If customers were opting for Pearls and Curves or trading in the Storm for older models (which Verizon says is untrue), then RIM would actually have higher margins in the short term. Their newer products have lower gross margin in the first few quarters while they ramp volume and optimize supply chain. The reality of the situation right now is that RIM is growing its market share at the expense of profits. That is good news for mid to long term investors and bad for short term investors. In this economy, there are more short term investors, so the stock tanked, but trading volume is high and there are obviously a bunch of people loading up on what they see as another buying opportunity. John – you’ve got it reversed. The lower margin is consistent with the idea that RIM’s product mix during the quarter was heavier with new products like the Storm and Bold. If customers were opting for Pearls and Curves or trading in the Storm for older models (which Verizon says is untrue), then RIM would actually have higher margins in the short term. Their newer products have lower gross margin in the first few quarters while they ramp volume and optimize supply chain. The reality of the situation right now is that RIM is growing its market share at the expense of profits. That is good news for mid to long term investors and bad for short term investors. In this economy, there are more short term investors, so the stock tanked, but trading volume is high and there are obviously a bunch of people loading up on what they see as another buying opportunity.

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