RIM under pressure to move down market say Barrons

According to an article over on Barrons, they believe that BlackBerry maker RIM already captures almost a quarter of the mobile phone handset industry operating income, and to further increase their share, they believe RIM will likely be under pressure to move down market which may put pressure on corporate gross margins.

They also believe that the pressure could exacerbate by an increasingly competitive smartphone market considering the amount of new smartphones from the likes of LG and Motorola.

They therefore estimate that a 100 basis-point drop in gross margin versus their present assumption of 42.2 percent could reduce fiscal 2011 earning by 22 cents per share.

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