Launch of RIM's 3G BlackBerry faces delay

Launch of RIM's 3G BlackBerry faces delay: report
By Susan Taylor
38 minutes ago


Research in Motion (RIM.TO) shares fell 3 percent on Friday after a Fortune.com story said that a high-speed wireless version of its BlackBerry smartphone for top U.S. phone company AT&T Inc (T.N) is facing delays.

The introduction has been pushed back as far as August from June, the story on Fortune magazine's website said, citing unnamed people close to the companies. The reason for the delay was unclear, but AT&T had worries about call quality, the report said.

RIM and AT&T declined comment on the report, which also said the delay could hurt RIM phone shipments and subscriber growth in its second quarter ending August 30.

But one analyst said the delay isn't news, pointing to a January report in which he flagged a later-than-expected launch.

Canaccord Adams analyst Peter Misek downgraded RIM on January 11 to a "hold" rating, citing a 3G device delay until June as well as U.S. economic weakness.

Misek wrote on March 31 that RIM's 3G BlackBerry had just recently been delivered to AT&T and Vodafone labs and he repeated his February forecast that the launch was now likely delayed to August.

RIM had to work with its chip supplier Marvell (MRVL.O) to resolve technical problems, said Misek. He believes those issues are now sorted out and that network certification, which takes about three months, is the last hurdle.

"I'm very, very disappointed that the market finds this as any kind of news. It's not going to have any impact on the August quarter and we've always said this device is going to be delayed," he said. "I'm just really surprised more people didn't know about it."

Shares in Waterloo, Ontario-based RIM fell C$3.77 to end at C$122 on the Toronto Stock Exchange and dropped $3.62 to $120.02 on Nasdaq on Friday.

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