BlackBerry-maker RIM profit misses estimates; shares drop in late trading

“Research In Motion Ltd. reported profit and sales that missed analysts’ estimates after delaying the release of the BlackBerry Bold phone in the U.S., its biggest market. The shares fell 8.7 percent in late trading,” Vivek Shankar reports for Bloomberg. (RIM reported net income of $495.5 million, or 86 cents a share. Analysts predicted a profit of 87 cents on average, according to a Bloomberg survey. Revenue of $2.58 billion, compared with the average projection of $2.59 billion from analysts.)

“The Bold, a faster version of the BlackBerry e-mail phone, is Research In Motion’s response to Apple Inc.’s updated iPhone,” Shankar reports.

MacDailyNews Take: That was some response: “It’s here. The new BlackBerry Bold. Twice the price. Half the device.

Shankar continues, “Research In Motion, based in Waterloo, Ontario, dropped to $89 in late trading after rising 82 cents to $97.53 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have dropped 14 percent this year.”

Full article here.

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

Bloodbath.

40 Comments

  1. @ericdano

    Dude, we can’t win no matter who becomes President. The size of Government increased faster under George W. Bush than at anytime since the 1930s. On top of that he made the idiotic decision to start a pointless war AND simultaneously cut taxes.

    Now we have McCain promising crap that sounds like more big government, promising to keep the war going until, well, whenever, and also promising to not raise taxes.

    I’m a conservative also, hell I’m a libertarian, but at least with Obama he’s telling ya up front he’s gonna get the money from you!!!!

  2. What I’m not understanding is that AAPL got hammered hard in after-hours trading – but the fact is that people are buying their product in droves, and that is what is crushing RIMM. So one would think that AAPL would spike, right? I know, it’s pessimism about the smartphone market. That’s just stupid. Smartphones are selling – they just happen to be coming from Apple.

  3. Crushing? Blackberry is selling their share of devices too, which are at fire sale prices right now due to pending model refresh / new models so I think 4thQ / 1Q09 will be a very different report as new devices drive growth. I hardly call missing by 1 cent awful. Let’s face it the economy is having a major impact on everything.

    I love how lately MDN doesn’t report any negative news on Apple but it’s expected .. we are on a Apple news site. Reality is Apple is in dire space of losing both a number of indepent developers due to the AppStore fiascos of late and every week brings yet another security risk to light with iphone.

    Just today I had 4 different emails about recent iphone security alerts and why the device is being allowed to connect to our Exchange environement. Likely our Security / Compliance areas will remove the iphone from the allowed device list until security concerns are addressed.

    Add that to the growing interest in the Verizon Thunder/Storm and Apple better hope they keep getting people buying the iphone. If Verizon comes out at $299 with the floated specs it will be a huge drain on whatever hype Apple has been riding.

  4. @ted

    I wish.

    The guy is basically actuarial corpse with what amounts to a freaky evil office manager for a running mate and she could become the next president if he bites the dust in the next 4 years. Together the two of them don’t seem to be able to form a coherent sentence let alone inspire the masses with their great leadership qualities.

    And then theres Obama.

    This guy looks good in a suit, has that wonderful African-American tonal quality in his voice, and speaks with the cadence of a Baptist Preacher. As a result he has a cult of personality bigger than (dare I say it) Steve Jobs. He’s about as substantive as smoke though, and you’ll have an easier time nailing jello to the wall than you will figuring out exactly where he stands on anything.

    And the country seems to be stuck on deciding exactly who is less qualified, Palin or Obama.

    Is that nuts or what? The Republicans have given us a ticket with all the imagination of a dead cactus and the Democrats have gone out of their way to demonstrate the problems with affirmative action.

    We’re screwed either way.

    All we can do is hope that whoever wins just leaves the economy alone. For once, just leave it the hell alone. Let the winners win, the losers lose.

  5. Love it! Chance to buy the stock cheaper. RIM is still going to grow massively. It’s not like they didn’t report a profit. They did grow 70% over last year. Given the new spending on R&D;and advertising, the company is firing on all cylinders. They are going to add 2.9 million new users next quarter vs. 2.6 million this quarter. MDN will never learn. Mobileadmin brings up some very good points…

  6. Obama always scared me, but lately McCain is really scaring me to death. “Hell to the no” on McCain….Obama is underqualified..but he has a better likelihood of asking for help when its needed. I am certain now that the terrorists would prefer McCain in office…he’s a ticking time bomb…exactly what they specialize in!

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