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RIM ships 14.9m BlackBerrys in winter, but outlook dire

updated 05:10 pm EDT, Thu March 24, 2011

RIM winter 2011 sees 14.9m BlackBerrys ship

RIM on Thursday reported strong results for its winter but had a dim outlook for the spring. The company shipped 14.9 million BlackBerry phones, up a relatively modest amount from 14.2 million in the spring. It again had exceptional profits and saw its net income climb nearly 32 percent to $934 million, based on sheer revenue of $5.5 billion.

Estimates for the spring quarter were virtually flat, however. The smartphone maker estimated that its revenue would be flat or drop, ranging between $5.2 billion to $5.6 billion. It blamed the wide range partly on possible supply problems in the aftermath of the Japanese earthquake but also blamed shifts in what people would buy. Many were expected to skew towards "lower ASP devices" like the BlackBerry Curve 3G rather than high-end models. Marketing and work for the BlackBerry PlayBook would also likely cut into revenues, RIM said.

Anxiety around the sub-par predictions led to a massive stock sell-off that saw the price drop more than ten percent after hours.

The current results show a healthy foundation for RIM but could also see it lapped by Apple a third time in a row. Neither's quarter overlaps the other, but Apple shipped 16.1 million iPhones in the fall and historically tends to see sales kept steady or climbing upwards. The fall was the last quarter before the Verizon iPhone launched and may have led to numerous BlackBerry switchers who had declined to jump to AT&T.

Much of RIM's spring performance will hinge on the PlayBook's April 19 launch and whether customers are drawn to its inaugural tablet. Although it has a very high-speed dual core processor, better cameras and the same pricetag as the Wi-Fi iPad, it lacks both a large catalog of third-party apps and even won't have a mail client of its own on launch for those that can't tether a BlackBerry.




by MacNN Staff

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Comments

  1. facebook_Steve

    Via Facebook

    Joined: Mar 2011

    +10

    Hmmm

    "its price is exactly that of the more expensive iPad"

    Where's a good proof reader when you need one?

  1. vistate

    Joined: Dec 1969

    -8

    lmao you stupid idiots

    DIRE OUT LOOK LMAO

    A company that does nothing but produce phones made 5 BILLION DOLLARS!

    THey dont even have steve jobs and pushed 14.9 units lmao omg macnn you officially lost me as a viewer.

    got suck on jobs t**

  1. DeezNutts

    Joined: Dec 1969

    -5

    Not sure I'd call it dire


    These guys moved almost 15 million devices. If that is a 'Dire' sutation then Apple must be in serious trouble themselves!

  1. spyintheskyuk

    Joined: Dec 1969

    0

    Clearly a little worse for wear

    You seem a little wayward with your spittle there. I think its the analysts that you should be spewing your wrath upon people, or at least choose the correct forum.

  1. FreeRange

    Joined: Dec 1969

    +3

    stupid is as stupid does

    @vistate - Fortunately no one is relying on you for investment advice. RIM is obviously in trouble. They are losing market share, and their ASP is declining in a market (smartphones) that is rapidly growing. This is a classic business case where the appearance of an expanding business, based solely on revenue, paints the wrong picture. Note also that more and more of RIM's sales are coming from lower priced products and services in developing countries, while their most profitable business, the US, is shrinking. Further, their tablet, by their own admission, is a huge sinkhole, and that is only going to get worse.

    You received your business degree from where again?

  1. slapppy

    Joined: Dec 1969

    +1

    Buy one POS get...

    four POS family pack program. Problem solved.

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