Research In Motion (RIMM) Under Attack

WSJ reported that with the expected release of Droid by Verizon Communications Inc. (NYSE: VZ), there will be a new war in the smart phone market. Besides Verizon Communications’ Droid, Sprint Nextel Corporation’s (NYSE: S) Palm Pre is another participant looking to have a bite in the smart phone market. Due to these new participants, one that could be affected will be Research In Motion Limited’s (NASDAQ: RIMM) Blackberry.

In the third quarter, Apple Inc’s (NASDAQ: AAPL) iPhone, has already reduced the market share gap with RIM. Research In Motion failed to take advantage of its lead in email service by not instituting a robust web browser.

Analysts are already expecting RIM’s profits to decline. They also expect that as competition increases, prices and margins will remain under pressure.