A storm of a different kind is rocking Research in Motion Ltd. (RIMM). While the gadget blogosphere and consumers fret over the software glitches and supply problems of RIM’s touchscreen device, the Storm, Wall Street is more worried about lower earnings, revenue and unit sales. The company’s warning is the latest indication that the economic headwinds are proving too powerful for the once hot smartphone market.
“The handset manufacturers are finding out that the smartphone market isn’t impervious to what’s going on in the economy,” said Daniel Hays, a director at management consulting firm PRTM. “We’ll see some migration to the mid-to-low end as people move away from buying smartphones to more traditional handsets.”
RIM’s comments late Tuesday follow a similar warning by Palm Inc. (PALM) on Monday. Nokia Corp. (NOK) - the world’s No. 1 seller of smartphones - is expected to either offer its own warning or provide some sober commentary when it holds an analyst day event on Thursday.
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