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Article

Title: Palm's Outlook, RIM's Results

Author: Carson, Phil Article Type: Product Analysis
Source: RCR Wireless News, v26 n15 p5(1) Publication Date: Apr 16, 2007
  ISSN: 1533-0796
URL of Publication: http://www.rcrnews.com

Palm Incorporated and Research In Motion (RIM) are similar in terms of stock appreciation and in the type of product offered in the market, but the business stories behind them are contrasting. RIM has achieved significant success in its business as revenue increases to $930.4 million in the fiscal fourth quarter, marking a 66-percent increase from the year-ago figure. The companys subscriber base also increased by a million bringing the total number to around 8 million. Traders bolstered the companys stock, but it soon went down after revenue and profit expectations were not met. There is also the issue of the Securities and Exchange Commission formalizing the investigation into RIMs stock-option practices. Despite the hurdles, RIM assured its investors that its BlackBerry Pearl device had raised company revenues. The company also boasts of positive results for its 8800 model. On the other hand, Palms stock is being run up as speculations arise that it is a target of a merger or acquisition. Palm is also competing in the enterprise market with a consumer PDA background, making it less competitive against giants such as Nokia and Motorola. Palm is looking to distinguish its web browser, lower overhead costs and improve time-to-market speeds, but the stock market is still downgrading the stock due to the merger and acquisition talk.

Companies:
Palm Inc Research In Motion Ltd (RIM)

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