Analyst says that Apple's iCloud could seriously damage RIM

Analyst says that Apple's iCloud could seriously damage RIM
If the name Shaw Wu sounds familiar, that is because he is the analyst who continually wrote clients to tell them that a Verizon branded Apple iPhone was coming. Wu, who now toils for Sterne Agee, told clients on Friday that Apple's soon to be introduced iCloud is a game changer that will make it tough for other manufacturers to compete with the Cupertino based firm.

The new service, expected to be introduced Monday, will make iTunes more powerful according to Wu, who says that it can hurt Google, Amazon, Microsoft and RIM. While all of the aforementioned companies have tried to compete with iTunes,Wu sees iCloud making life especially difficult for RIM. Why? Because RIM offers its own "push" network for users of BlackBerry phones. While iCloud won't offer all of the same services that BlackBerry does, it will relieve some of the traffic congestion that carriers face by offloading data processing and as we reported the other day, the service will begin life free to users.

After speaking to industry contacts, Wu told clients that iCloud could impact RIM's forward service revenue and gross margin. Currently, carrier payments offer RIM gross margins as high as 87%. With that kind of profitability in danger, Wu has cut his revenue estimates for the Canadian based company to $24 billion (US) for the 2012 fiscal year, a drop of $100 million from his previous figure. Even more damaging, Wu now expects the BlackBerry maker to produce earnings of $6.35 a share, down from the $6.65 originally estimated. With this in mind, the analyst has cut his target on RIM's stock to $44 from $52. Friday morning, the stock was trading at $39.83.

Monday, Apple CEO Steve Jobs is expected to introduce the iCloud service during his keynote speech at the WWDC in San Francisco. A banner showing the iOS icon for iCloud is already hanging at the Moscone center where the WWDC will be held.

source: AppleInsider



1. davecann2

Posts: 460; Member since: Mar 15, 2011

I think RIM can seriously damage RIM

2. E.Graves unregistered

My question is that for all the people that do not have unlimited plans how will the icloud benefit them. Why use a icloud service in your own house on your own wifi network when your music is most likely on your computer any how. I currently use amazon mp3 cloud player with my Evo, but i do have unlimited data that isn't throttle as far as I have noticed. The cloud concept is great, i have taken 6 gbs of music off my sd card and uploaded it to amazon. But i don't see it crushing other services right now because the IPhone is on two networks that are no longer offering unlimited non throttle data packages.

7. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

Verizon still has an unlimited plan.

9. Fanboys Suck

Posts: 609; Member since: Dec 12, 2008

Not for long...

12. LionStone

Posts: 1048; Member since: Dec 10, 2010

Yea well, for the next two years most of us still do! :)

26. MpowerSkills

Posts: 47; Member since: Feb 19, 2011

When is it supposed to go away? I should probably get an unlimited plan before it goes away, right? Then I'll be grandfathered in?

3. taco50

Posts: 5506; Member since: Oct 08, 2009

We'll see what Apple has up their sleeve. They're very innovative so they may offer something more than cloud storage. They could really make it game changing.

4. koutrelakos

Posts: 30; Member since: Mar 17, 2010

I've stored 7000 songs and counting with Google Music Beta. iCloud isn't innovation, it's just Apple's version of what already exists. Who cares.

5. Lucas777

Posts: 2137; Member since: Jan 06, 2011

uhhh everyone who uses itunes cares... im sorry but ur google music kinda fails... holy crap u uploaded ur songs when u cud have just put them on ur phone in 1/5 the time! and anyways i believe icoud is much more than just music

8. Rich unregistered

everyone uses itunes? well mostly everyone who has an iphone uses itunes. but not everyone uses itunes. i think the whole cloud thing is kinda dumb. but maybe itll work. but clouds already exist. this isnt innovative, but however apple will get all the media credit and publicity bc apple is just the tend right now. i can plug my phone in my computer, click connect as hard drive, and just drag any files into the phone that i want to have there to bring around with me.

31. Lucas777

Posts: 2137; Member since: Jan 06, 2011

i said everyone WHO uses itunes... learn to read... and ya it already exists... but in every aspect of life, its who makes money from it that matters...

14. Whateverman

Posts: 3295; Member since: May 17, 2009

Lucas777. Why do you think Google Music is a fail? Looks pretty cool to me.

16. InspectorGadget80 unregistered

I store 17,000 songs on my Google Music Beta

6. theBankRobber unregistered

Every cloud streaming service sucks Ass, its going to be a batter killer and data increased. This is just the most stupid ideal I ever heard, and god I hate to really really really say this but, Apple is talking another ideal that others have started and is going to make it seem like they invented the Shit. Look at what Wu said , its going to be another game changer, how, its another persons ideal that Apple will throw billions of dollars around just to make it seem they did it 1st and was completly their ideal.

10. taco50

Posts: 5506; Member since: Oct 08, 2009

All you Apple haters don't get it. Apple isn't innovating new ideas. They're taking things that exist and innovating to make them better and user friendly. That's why Apple sells. Look at touch screens. They existed before the iPhone, but the iPhone OS was way more user friendly and made touch screens mainstream. Same thing with the iPad. Tablets existed for years, but no one cared because they weren't user friendly. Apple may be able to do the same with icloud.

19. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

Bill Gates had the right idea all along; he just couldn't implement it in a user-friendly way.

11. LionStone

Posts: 1048; Member since: Dec 10, 2010

So people are apple haters if they don't buy into the whole apple game? Great they have nice touch screens and tablets, and what else? Oh yea, a grand marketing (brainwashing) let's not confuse what really sells apples.

13. taco50

Posts: 5506; Member since: Oct 08, 2009

No people who prefer different products aren't Apple haters. People like you that follow Apple articles around just to talk shit are. Statements such was "brainwashing" is nothing, but hating. You know very well that Apple makes good products and that's why people buy them. Anytime someone is successful there are haters. You happen to be one of those people which sucks for you.

22. LionStone

Posts: 1048; Member since: Dec 10, 2010

Taco, who is the one hating? I even agreed that apple has nice touchscreens and tablets (I even bought one for my buddies daughter's birthday!) But you don't realize that you pretty much said what the Bank Robber said...only difference is I don't think you know what you are saying. First you say they are very innovative, then you say they're not innovating new ideas, just taking something existing and making it better. To me, that's not really innovative, that's polishing. Which leads into their marketing scheme which everyone knows about and does NOT come from a hatred position. Especially since i have heard first hand how people don't even care about what apple has for specs, etc. but that they want it (whatever it is) because its apple and that's all they hear about...from their friends, the news, the billboards every 200'...I mean come on, that's reality. Apple makes a fine product yes, but that is not the whole picture as to why people buy them. I follow these articles to see what the competition offers and to share with my friends who use apple. Even 530Gemini stated he's not sold on the iCloud service in general, does that make him a hater too!? I think not.

23. taco50

Posts: 5506; Member since: Oct 08, 2009

Did you read your own statement? You said "great they have nice touch screens and tablets and what else?". Then you said they brain wash people into buying their products. Anyone can scan Apple articles on this website and see you posting one shit talking comment after another. It's not news to anyone, but you apparently. You're saying what Apple did with touch screens isn't innovation? Pinch to zoom? Webkit browser (which android now uses by the way). You also have a reading comprehension problem even for things you write. I never said if you aren't sold on Apple products or don't want to use icloud you're a hater. I said people who follow Apple articles just to post shit talking comments are. You're first comment you were clearly trolling. Now you don't want to own up to it.

24. taco50

Posts: 5506; Member since: Oct 08, 2009

There's a guy that named himself ihatecrapple for gods sake. His screen name is based on hating Apple. I'm guessing he's a VZW employee because he hasn't talked to much since Verizon got the iPhone.

29. LionStone

Posts: 1048; Member since: Dec 10, 2010

Oh waahh taco, grow a "brainwashing" comment is my opinion of apples marketing scheme, yea so what?! You gonna cry "hater!" everytime somebody's comments don't agree with yours on apple subjects?

15. 530gemini

Posts: 2198; Member since: Sep 09, 2010

I'm not sold on this cloud service in general. If it's just music and videos, I wouldn't care for this service. I have my music and videos with me now and can play them anywhere, so I don't know how the cloud service can significantly impact the way I access my media. I will see it beneficial if it can let me access all my files (music, videos, photos, and docs), synch all my idevices, and let's me switch devices and continue what I was doing. Otherwise, I'm not interested.

18. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

I'm not sold on cloud services either, honestly. Like the guy who responded to me said above, Verizon has unlimited data...for now, and probably not much longer. With these cloud services, there is going to be a lot of uploading/downloading from devices and streaming, all of which use data. If everyone is moving to tiered data plans, how is this going to benefit the consumer? Sure it might be convenient, but having to pay for the cloud service (which they say crApple might do) and having to worry about your data usage kinda negates that? In my opinion anyway.

17. InspectorGadget80 unregistered

How is it going to KILL RIM? This is why I hate analyst they can't predict anything that's accurate.

25. taco50

Posts: 5506; Member since: Oct 08, 2009

Youre assuming it's only for storing music. They can use it to push email, offer sync services similar to how rim uses their servers.

27. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

IN RESPONSE TO COMMENT #24Yea, I hate crApple products....I have my preferences, and you have yours. I don't say much anymore because there weren't too many interesting articles here for a while.And yes, I am also a VZW employee. And that's another reason I hate crApple; they stifle the commissions on that piece of sh*t and you barely make money on the phone itself. Windows 8 will crush everything... :)

28. taco50

Posts: 5506; Member since: Oct 08, 2009

You had that screen name way before VZW had the iPhone. I hate crapple came from being a brainwashed Verizon employee who bought into the hype of hating the iPhone just because VZW didn't have it.

30. LIboy unregistered

Forget iCloud. I have instinctiv better. I control my library across multiple players and get many features too.

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