“Research In Motion gave investors a jolt when it reported quarterly earnings on Sept. 25. Margins in the current period will shrink and earnings won’t match analysts’ forecasts as the company steps up spending on newfangled devices, the BlackBerry maker said, sending shares plummeting more than 19% in extended trading,” Arik Hesseldahl reports for BusinessWeek.
“Even as RIM said sales increased 88% and profit surged 72% in the quarter that ended Aug. 30, it also said gross margins will narrow to 47% from 54% last quarter,” Hesseldahl reports.
“RIM’s numbers also revived concern that in the face of competition from Apple (AAPL), RIM will incur higher expenses as it makes products snazzier. ‘Apple is really pushing the envelope and now RIM is responding with higher-quality displays and touchscreens, and that is pushing up’ costs, says Samuel Wilson, an analyst at JMP Securities (JMP) in San Francisco,” Hesseldahl reports.
Full article here.
[Thanks to MacDailyNews Reader “James W.” for the heads up.]