But I did say it.
RIM’s 28% drop today ties perfectly into my last post. What is weird is that all the analysts were “shocked” that RIM had to spend more money on advertising to fend off the iPhone, spend more on R&D to make better phones, reduce profit margins to compete on price, and cut margins to go after consumers.
The writing was on the wall folks. If you expected RIM to keep those silly margins, you are blind. RIM makes cheap hardware, but because they were competing with Windows Mobile and selling to business customers that are not sensitive to price, they could keep those margins and sales growth.
Good luck RIM, see you when your market cap is under $10B.
Here are some fun links: