1:00pm (EST)
Second quarter earnings season is right around the corner, but we get an early present with Research In Motion (RIMM, $58.82, down $0.82) reporting after the close today. The announcement is so important and will offer a sneak peek into how much the smart-phone playing field is leveling.
Here’s a hint.
Apple’s (AAPL, $270.00, down $0.97) iPhone had a 15% share of the global smart-phone market by the end of the first quarter. A year before that, Apple had a little over 10%.
Google’s (GOOG, $477.76, down $4.29) Droid/ Android gadgets currently have a 10% market share. What’s scary for RIMM, and why we think they could disappoint Wall Street, is that Goog’s only had about 2% of the market a year ago.
Both Apple and Google have just launched new phones. We hate to say it, but RIMM has been asleep at the wheel for years! They use to OWN the smart-phone market, and if they don’t wow Wall Street after the bell then we could easily see a 10% or more drop in their shares.
RIMM has missed the droves of new people getting a smart-phone, and you can almost bet the top two choices are going to be the iPhone or a Droid. This could get interesting.
As far as the market goes, the bears are looking for blood, and they have the bulls backed into a corner. We have been calling for a correction and last week delayed our thesis but the charts aren’t lying, folks. We could be setting up for a NASTY correction by tomorrow, and next week could be brutal if you are a bull.
The Dow is currently down 88 points to 10,210 while the S&P 500 is off by 12 to 1,079. The Nasdaq is getting punished for 25 points and was last seen at 2,228. Subscribers, check the Members Area for the updates.
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