RIM shares drop on BlackBerry revenue miss, weak outlook; PlayBook to run Android apps

“Research in Motion Ltd.’s stock took a hit Thursday after the maker of the BlackBerry reported revenue from its recently concluded quarter that fell short of expectations and warned that sales in the current three-month period are shifting to cheaper models,” Peter Svensson reports for The Associated Press.

“RIM’s shares were down $6.81, or almost 11 percent, at $57.31 in extended trading after the Waterloo, Ontario, company reported results from the three months that ended Feb. 26.,” Svensson reports. “It posted net income of $934 million, or $1.78 per share, for its fiscal fourth quarter. That was up 31 percent from $710 million, or $1.27 per share, a year earlier. Analysts surveyed by FactSet expected earnings of $1.75 per share, on average. Revenue rose 36 percent to $5.6 billion, shy of the $5.65 billion expected by analysts.”

Svensson reports, “For the current quarter that ends in May, RIM said it expects earnings of $1.47 to $1.55 per share, below the average analyst forecast at $1.65… The PlayBook goes on a sale in the U.S. on April 19. It’s half the size of Apple Inc.’s iPad, and it’s designed to work both as a standalone tablet and as an accessory for a BlackBerry phone. RIM said Thursday that the PlayBook will be able to run applications written for Android, which is popular on smartphones that compete with BlackBerrys.”

Read more in the full article here.

28 Comments

  1. what a set up for option puts… i see RIMM totally being bought by someone like MSFT or a hardware maker.

    RIMM is putting up a fight. they were in trouble a long time ago – 2007, but when 2010 came around and they still had nothing to even be close enough to ‘copy’ the iPhone (let alone android). They were in deep trouble…

    Except for mobile email… IF THAT IS ALL YOU DO… why get a Blackberry.

    1. RIM “shipped” 14.9M BB’s. They just did a lot of arm twisting and blowjobbing to get that shite stuffed into the “channel”.

      They did not “sell” those phones to real “persons”

      1. Sold or shipped – really about 7.5 million “sold” because of BOGO. I uspect by September, telcos will be offering BOGO for Playbook with a contract. extesion for there phones.

        1. BOGO is only BOGO for the consumer.

          A blackberry costs some $450-500. Consumer normally pays $100 or $150. When they are offered to buy one and get one free, the price is essentially reduced by $50 to $75 for each of those two devices sold to that consumer. So, while it may seem to the consumer that they are getting it for free, they are essentially getting a 15% discount on those two phones.

          Not to mention that the 15% discount is usually absorbed entirely by the carrier, and RIM rarely discounts their hardware to the carriers.

          Regardless of the skeptical Wall Street, RIM actually DID move millions and millions of devices, and still has millions and millions of subscribers. At this point, they are like Windows — corporate drones will keep renewing and getting new models because nobody gets fired for buying IBM / Microsoft / Blackberry.

    1. See my comment above.

      Blackberry’s retail price is not just $100 (or $150) that consumer pays upfront. It is at least $500. So that ‘free’ blackberry is essentially only at best a 15% discount on two phones.

      And that discount usually comes from the carriers. RIM got full money for every Blackberry sold.

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