Will Storm's delays hurt RIM's Q3?

Will Storm's delays hurt RIM's Q3?

Summary: I know you're probably on Blackberry Storm overload by now - but please indulge me once more. Last month, I asked all of you whether I should go iPhone or wait for the Storm.

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I know you're probably on Blackberry Storm overload by now - but please indulge me once more. Last month, I asked all of you whether I should go iPhone or wait for the Storm. Overwhelmingly, you all told me to wait for the Storm, that it would be a game-changer. And so I did.

But, today, I don't have one. By the time I got to a retailer late Friday morning, they were all sold out. Now, the supply has become an issue over a software glitch that's being corrected. That's kind of funny to me because, when I put a call out to Verizon Wireless a few weeks ago trying to get a launch date for the Storm, I was told the reason they don't tie themselves to a date until the last possible minute is because they don't want to get caught up in making a promise they can't deliver on. Yet, that's exactly what happened. Now, with an inventory problem on their hands, it looks like mid-December before another round of Storms will become available. Having them on shelves before Black Friday doesn't look too promising now, does it?

Which leads me to the next point: Research in Motion, the maker of the Blackberry, was, no doubt, hoping to get those Storms sold and log those buyers as subscribers before the end of its third quarter on Nov. 29. Now, given the problems, we're not really looking at big subscriber numbers for Q3 - and that's prompted Citi's Jim Suva to trim his estimates for subscriber growth, revenue, and profit, according to Silicon Alley Insider. He now expects RIM to report 2.7 million net subscriber additions in Q3, instead of the previous estimate of 2.9 million. Likewise, he now expect sales of $2.85 billion instead of $2.96 billion and an EPS of 85 cents, instead of 91 cents.

Meanwhile, JPMorgan analyst Paul Coster told clients in a note that the Storm has been greeted by "unambiguously strong consumer demand that has outstripped supply," a positive comment that prompted shares of Research in Motion to rise today, up more than 3 percent at one point but closing down just over one percent at $45.26. Shares were down slightly in after-hours trading.

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Topics: Verizon, Hardware, Mobility, BlackBerry

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8 comments
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  • Having fun waiting?

    I guess wi-fi wasn't a factor in your decision, or entertainment apps.
    jsumoski
  • RE: Will Storm's delays hurt RIM's Q3?

    I'm actually disappointed for a few reasons.

    1. As you've already pointed out the supply is way to low
    for the demand (and is a big turn off)
    2. The device is not multi-tuch as the iPhone is such as
    zooming into a picture.
    3. Most importantly I was hoping RIM would update their
    pocket mac sync software for apple when this phone was
    released. I have been having trouble getting it to work
    after my initial sync with my current blackberry and now it
    doesn't even launch. There is no point in me purchasing
    such a big ticket product if I cannot sync it with my
    macbook.

    That's my 2 cents.
    fixmedoc
  • RE: Will Storm's delays hurt RIM's Q3?

    We have them in and they don't sync well with our BlackBerry Enterprise Server. It took use six tries to get it to sync before we stopped all the services on BES except address book, waited for the sync to complete then restart the services. I'm not complaining I'm just saying it's not easy.
    bwilkes81
  • RE: Will Storm's delays hurt RIM's Q3?

    I got one on Friday, there has already been an update to the 4.7 software that came up when I sync'd. It actually seemed to improve functionality. Having had both the 1st and 2nd generation iPhones you are correct in saying it is not an iPhone....thank God. Before I get flamed, I liked many things about the iPhone, I miss the browser terribly, I don't miss the dropped calls, miserable battery life, and finicky enterprise functionality.

    The keyboard on the Storm in landscape mode is just as tricky as the iPhone, miss by a millimeter and you get the wrong letter. Sure type is as good as a standard keyboard. Speaking of landscape, you can get it in just about every application. Sometimes there is a delay after a press but it is not bad. Call quality is excellent, speakerphone is loud and not distorted, yes I wish WiFi was in but it is not a deal killer for me. It does take some time to adjust to the phone, so before you give up (if you read some of the not so kind reviews) try it.
    jbaer1
  • RE: Will Storm's delays hurt RIM's Q3?

    Yep... it will for me. My g/f was going to get me this for my bday/Christmas. Since its already on back order, I've seen they are having issues (got me past the 'must have now' illness), and my phone discount is up in May of '09. Not that I'm sure the discount will apply to the Storm, but either way I'll probably just wait until then.
    Nate413
  • the phone is difficult to use, look elsewhere.

    I was ready to get one, then I finally tried one out. The keyboard is terrible, the operating system is so slow. I could live with this phone if it worked correctly and ignore that it doesn't use microsoft mobile.
    Now that I see it is so difficult in inputting text I may actually consider a samsung saga to replace my junk samsung sch-i760.
    I really wanted this phone so I tried to get information from RIM. I downloaded a worthless owners manual.
    I asked several times about the calender feature and the voice commands. I wanted to know how they work and how they integrate with outlook. Also I needed to know what integrates with outlook. So far no answers from RIM.
    So my question is why buy a phone that the manufacturer cannot support?
    By the way, my first inquiries asked about the Blackberry Storm 9530, the replies are which phone are you asking about, the Storm or the 9530 or the bold or the 9500.
    vertdriver
  • Recall?

    I'm still waiting for my storm to come in the mail but my co-worker got one and the screen does not click properly near the edges and it makes it hard to register keys along the edges like the letter 'a' in ladscape mode and the 'zoom out' icon in the browser. He tried this fix described below where you put a business card folded in half between the battery and back cover and it actually works. He's getting verizon to send him a new one though.

    http://forums.crackberry.com/f86/th...em-look-101670/

    I hope mine doesn't have this problem otherwise I'll get a replacement. I guess not all devices are tested in mass production thoroughly, only some in a batch.

    Sounds like a recall to me.
    Precy
  • RE: Will Storm's delays hurt RIM's Q3?

    Check out the HTC that Verizon released on the 11/24/08 without any fan fare. Has proven touch screen along with WiFi access.
    nomadsmg