Apple iCloud Could Cause 'Collateral Damage' to RIM

Shaw Wu, an analyst with Sterne Agee, says Apple's iCloud will cause 'collateral damage' for rival handset maker Research in Motion.

AppleInsider relays the report in which Wu says that iCloud will "change the game".

"While iCloud doesn't replicate all of RIM's push network, the ability for iCloud to offload data center processing and traffic from carriers is attractive," Wu wrote. "And it looks like AAPL will likely offer some base service for free."


Wu believes iCloud will impact both RIM's forward service revenue and gross margin because carrier payments are estimated to have a high gross margin of 85 percent to 87 percent.

Read More