Revenue outside the U.S., UK, and Canada was up 48% over the last three quarters of 2011 to US$8.24B. That compares to a revenue decrease of 44% in the United States. I think that the future of the smartphone market is outside of the USA (smartphones are already becoming commonplace there unlike much of the developing world like Indonesia and even Brazil where bandwidth remains constrained). Investors are undoubtedly overly concerned with the American market rather than looking at the global picture.
Momentum from last night’s purchase of Research in Motion stock by Greenlight Capital may or may not last — but it should, according to Tavis McCourt, tech analyst at Morgan Keegan. “It’s a worthwhile bet. The chances for success in the U.S. are relatively low, but the future profitability of RIM is likely to come internationally, where there is still a wide open race for market share,” said McCourt. Apple and Samsung price points don’t compete well in emerging markets, he argues, because they’re too expensive, which leaves plenty of playing room for RIM. So, despite months of getting hammered in the market, McCourt is confident that RIM can still be a “good niche provider of smartphones over the long term.” For the value investor, there may be no reason to wait.
Agree, We may not reliaze but RIM already made the decision based on #s that the Smartphone growth will be higer internationally then USA. If good products are delivered, USA will not be problem but will not mess with international market just cos of USA. The margin are lows in North America, so why bother..