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.

  2. So is RIM using their own proprietary OS and interface, and it happens to also be able to run Android apps “on the side”? Or is this just another Android tablet with some proprietary “apps” for BlackBerry interaction?

  3. Any company that thought the world would be the same for small electronic devices after the 1st minute of Steve Jobs introducing the iPhone January 9th, 2007 had TOTAL IDIOTS in the Exec. Suite AND the Board of Directors.

    I don’t give RIM a chance after blowing 4 years with nothing substantial to show. Not a thing but hot air.

    Nokia with its volume at least has a chance, but no partner of Microsoft has ever entered greatness.

    I’ll bet Apple and their Asian competitors are the last men standing in 2015.

  4. I’m an enthusiastic Apple supporter like the next MDN reader, and have nothing but contempt for RIM just like the rest here.

    However, let us be realistic. RIM made almost a billion dollars last quarter on revenue of less than $6B. They beat Wall Street expectations. They guided lower (much like Apple always does), and Wall Street didn’t like that.

    The only bad indicator is that RIM is losing its market share to Apple and Android makers. In absolute numbers, though, their growth is still pretty robust. Once the mobile market matures and growth slows, the fight will then really be on between various makers and it is only then that RIM will begin to suffer from Apple (and possibly Android, if it continues to exist in its present form, in the aftermath of any patent infringement verdict).

    1. They didn’t beat Wall Street expectations. They missed expectations, even if by a little. When Apple blows away expectations regularly, when one of its competitors misses expectations, no matter how slightly, this is a VERY bad sign to investors – as it should be.

      1. “RIMM 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.

        Profit DID beat expectations. And they grew 31%. The only thing that came ever so slightly below the expectations was gross revenue (missed by 1%).

        RIM is NOT gone yet. I can see them gone in 4-5 years, but not today and not tomorrow. A company that consistently grows quarter after quarter simply does NOT stop growing all of the sudden. Apple simply cannot MAKE that many iPhones for every blackberry subscriber to switch right away.

        Let us not forget, RIM is the ONLY mobile phone maker that still extracts monthly kickback for every subscription they have. Something not even Apple is doing anymore (and they did, with the original iPhone subsidy arrangements; it’s now gone, and they’re back to the usual subsidy model).

        As for their stock value, I have no doubt it will continue to languish, since investors look at the horizon, and that is definitely clear — there is no bright future for RIM with their present strategy. That does NOT mean, though, that they’ll be auctioning off real estate and fixtures anytime soon.

    1. You would think a disoriented Ballmer would sound coherent based on the premise that two negatives make a positive – but not in this case. Balsillie is a bumbling, rambling mess with no coherent strategy, just like the Playbook.

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