BlackBerry-maker RIM misses analysts’ profit estimates, gives disappointing forecast; shares drop 8%

“Research In Motion Ltd., the maker of the BlackBerry e-mail phone, missed analysts’ profit estimates for the first time in five quarters and gave a disappointing forecast amid higher spending to take on Apple Inc.’s new iPhone,” Ville Heiskanen and Whitney Kisling report for Bloomberg.

“The shares fell [7.94%] after Research In Motion reported first-quarter profit of 84 cents a share, trailing the 85 cents predicted by analysts in a Bloomberg survey. Earnings this period will be as little as 84 cents, compared with the 92- cent average prediction,” Heiskanen and Kisling report.

“Co-Chief Executive Officer James Balsillie boosted sales and marketing expenses by 84 percent in the quarter to counter the buzz of the iPhone… Apple will release a faster iPhone next month that costs $199, cheaper than some BlackBerry models. That may hinder the BlackBerry’s expansion beyond its base of corporate users. ‘They’re ramping up spending, and it’ll be mostly for marketing,’ said Morgan Keegan analyst Tavis McCourt,” Heiskanen and Kisling report.

“With the new iPhone, Apple is making a stronger push to lure corporate users, which account for the majority of Research In Motion’s customers. The device adds business e-mail features and runs on third-generation, or 3G, wireless networks, meaning it can receive data at least twice as fast as the previous model,” Heiskanen and Kisling report.

“Research In Motion’s profit forecast suggests that its response to the new iPhone, the BlackBerry Bold, will go on sale later than the company planned, Global Crown Capital analyst Pablo Perez-Fernandez in San Francisco said. The company unveiled the device last month and said it will go on sale in the U.S. this summer for $300 to $400. ‘Our fears about the Bold being late are probably true and that’s why the stock is down,’ said Perez-Fernandez,” Heiskanen and Kisling report.

Full article here.

[Thanks to MacDailyNews Reader “Samir” for the heads up.]

MacDailyNews Take: When you’ve got nothing, you ramp up the marketing spending and try to prey on the ignorant. You know, like Verizon, LG, Samsung, HTC, and all of the rest of the iPhone lookalike-not-workalike peddlers; say the word “touch” a lot, hope nobody notices you never mention “multi,” and pray while you attempt to prey. You think this is bad, RIMM shareholders? The real bloodbath begins in just two short weeks from this Friday.

45 Comments

  1. We the common people in this forum told it was going to happen.

    Magazine analysts with half a brain (Dvorak & Co.) said it was not going to impact RIM.

    Monkeyboy Ballmer laughted at the iPhone.

    And the common people was right.

  2. crash, he he, ho ho, blah blah blah etc says:

    they are just building in the touch system in their failing MBA into their failing iPhone that nobody is buying! nokia has 146% of the smart phone market! microsoft makes way better software! Apple software sometimes has bugs too! there are even forums for going to with your MAC problems where people have been known to post actual problems they actually had with their MACs! suck that MAC dorks!

    you lemmings just get anything Apple makes, unlike the lemmings that follow the 90% windows share hurd! the only reason people buy iPods is because everyone else has them! that doesn’t apply to MS products though!

    <random right wing nut job comment! random capitalized words! random anecdotal evidence, random link to article that actually proves the opposite of what the poster claims!>

  3. Let’s see:

    1. RIM didn’t meet Wall Street shareholder expectations for profits;
    2. RIM’s iPhone “competitor” is late and getting later;
    3. RIM’s iPhone “competitor” will cost 50% to 100% more than an iPhone;
    4. Blackberries need RIM’s service center and can’t work (at least not full-featured) without it. Apple’s iPhone can, and can even do more with MobileMe services.

    I don’t think I would recommend RIM stock to anyone at this time. Or maybe not ever.

  4. @shen

    Ya’ know, shen, it is more than a little amusing when you WinTrolls call US lemmings. If there is, or ever has been, a metaphor more appropriate for you furballs who follow the great mindless herd of PC wildebeests, I don’t know what it is.

    To you and your kind, market share is everything. Nothing else matters but what OTHERS think, do, and buy, right? For your ilk McDonalds makes the greatest hamburger in the known world, for they sell more than anybody.

    Mind-numbed robots, you PeeCee users. Get your oil cans out (to mix a metaphor a bit); you’re gonna need ’em.

    Oh, and by the way . . . “hurd” does not equal “herd.” Dumbass.

  5. “…Balsillie boosted sales and marketing expenses by 84 percent in the quarter to counter the buzz of the iPhone…”

    Is that so? You can spend a lot of money trying to create a new American idol, but the public decides the winner. Right now, the winner is clearly iPhone, and the iPhone 3G is going to be a world champion for some time to come (presumably until Apple releases the next iPhone design).

    The only time that Apple will fail to increase its share of the market is when it runs out of iPhones while transitioning to the next generation design.

  6. “The company unveiled the [Bold] last month and said it will go on sale in the U.S. this summer for $300 to $400.”

    Hope (for RIM’s sake) that’s without the subsidy or it doesn’t stand a chance.

  7. Actually, RIM more than doubled revenues and profit and added more than 2 million new subscribers. They also issued no disappointing forecast.

    The MDN FUDmasters – or bullshit as some might call it – are at it again. Does MDN have one shred of integrity or honesty?

  8. toonie,

    The article is written by Bloomberg, not MacDailyNews.

    Your “FUDmasters” bullshit is misdirected. Plus, it’s wrong.

    Learn how to read.

    RIM missed analysts’ profit estimates and gave a disappointing forecast. And, MDN is correct, this just the beginning of RIM’s pain.

  9. “Actually, RIM more than doubled revenues and profit and added more than 2 million new subscribers.”

    I’m sure that was fairly easy with the iPhone either scarce or off the market entirely for that period.

    Investors are worried about the future, however. A refreshed, more business focused iPhone 3G at $199 when RIM has little new product ready is part of a frightening picture.

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