toggle

AAPL Stock: 113.29 ( + 0.37 )

Printed from http://www.macnn.com

RIM warns of lower subs despite Storm

updated 09:30 am EST, Wed December 3, 2008

RIM Warns on Q3 2008 Subs

Research in Motion late Tuesday warned that it expects the number of new subscribers to its BlackBerry push e-mail service to fall significantly below its original estimates. The Canadian smartphone company now expects to add just 2.6 million users instead of the originally predicted 2.9 million and also expects its earnings per share and gross margins to drop as a result. The company blames the dip both on the later launches of phones like the Bold for AT&T and the multi-carrier release of the Storm.

The news reinforces previous downbeat news for RIM, which in the summer was overtaken by the iPhone despite the BlackBerry range's significantly longer presence in the smartphone market and its lead among business users. New subscriber additions only represent a subset of the total number of BlackBerries sold but reflect the relative growth of the company's overall user base; lower numbers point to more sales skewing towards existing owners than towards converts or first-time owners.

RIM is nonetheless hopeful for the current quarter, which ends in February, and says that it generated a "record level" of daily subscriber additions on the BlackBerry Storm's November 21st launch and has seen similar results in the weeks since the touchscreen model's introduction. RIM believes there is a "growth opportunity" once it ships more products.

The company plans to announce its final results on December 18th.




by MacNN Staff

toggle

Comments

  1. horvatic

    Joined: Dec 1969

    0

    Despite sprinkle, not sto

    Despite sprinkle not storm. :-)

  1. joecab

    Joined: Dec 1969

    0

    maybe a bit dramatic

    A 10% drop is "significant"? Meh. That's practically single digits.

    I still find it hard to believe the Storm is (according to them) selling so well. The Pearl looks like something most BlackBerry users would be happier with.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

Wren V5US Wireless Sound System

If you're a music fanatic, chances are you are, by extension, a bit fanatical about what you listen to your music on. If you're like ...

toggle

Most Commented