“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.