TORONTO-Analysts who cover Research in Motion Ltd. are warning that the Waterloo, Ontario-based company will not likely be able to sustain sales growth for some of its new wireless products.
RTX Securities’ Jason Tsai became the third analyst this week to issue a report cautioning that RIM’s sales partners are seeing poor demand for the company’s next-generation wireless handheld products.
“Much of RIM’s revenue for fiscal 2003 is predicated upon filling the channel,” Tsai wrote in a report released Monday. “Without customers upgrading to the [new] products in North America and without adoption of the BlackBerry internationally, we believe that we will see a stall in RIM’s revenue growth over the next six to nine months.”
Ray Sharma, wireless technology analyst at BMO Nesbitt Burns in Toronto voiced concerns similar to Tsai in a report published Aug 23. Richard Piotrowski, vice president at SWS Securities in Dallas, also expressed concerns about slow sales in the current quarter in a recent analyst report.
RIM shares closed at C$17.03 (US$10.75) on the Toronto Stock Exchange on Wednesday up 53 Canadian cents or 3.2 percent.
