iPhone Release No Threat to RIM

Despite the hype, early reviews suggest a few negatives in regards to the iPhone - namely the keyboard and the service provider (AT&T) EDIT:( Apple chose to go with out of date Edge technology in addition to an apparent gamble with Wi-fi - Edge has an access speed of 200 kbps - translation LAME! Edge also has serious latency problems. Users can expect a 20- to 30-second wait per relatively graphics-light Web-page download using Edge). This is not to suggest that the iPhone is in anyway destined for failure, but it is weak in the exact areas Blackberry is strong. Blackberry also has proven rock-solid security. Royal Bank has rated Research in Motion (RIMM) Outperform, with an Above Average Risk Rating and a price target of US$180.00.

From RBC:

“Research in Motion should post a solid Q1/08 based on strong product momentum. Sales of the Blackberry Pearl continue to be strong, while the 8800 and 8830 models continue to sell well plus and the newly launched Blackberry Curve is selling strongly even as Apple Inc. launches the iPhone. Channel checks conducted by RBC CM indicate that RIM sold 80,000 – 90,000 Curves to date, with no evident slowdown ahead of Apple's iPhone launch June. 29. RIM sales may benefit from the iPhone, as over 1 million buyers are expected to storm Cingular stores; conversely, 'Headline risk' from the iPhone launch may restrain RIM's valuation multiple and given high expectations, further interim upside in RIM shares may require vigorous results above RBC CM’s outlook.”

Check out RIM's chart and related info on Google Finance

Not bad, eh?

Disclosure: I do not own any shares of Research in Motion (RIMM)

Article on theStreet.com "RIM Puts iPhone Hype on Mute"

"Sentiments like this could foreshadow, a knee-jerk reaction to RIM's stock, with some traders choosing to sell it after the earnings. But eventually, says Kelmon, what's good for the iPhone may prove good for RIM."

If you are looking to buy RIM, you may get a good opportunity if IRRATIONAL panic selling occurs after earnings report. How will you know if irrational panic selling is occurring? If earnings beat expectations, but share-prices fall anyway, then that is your chance to get in at a good price. See post below in regards to irrational selling behavior and mob mentality.