Beleaguered RIM misses its revenue forecast; takes $360 million bath to clear unsold PlayBooks; shares plummet

“Research In Motion Ltd. said revenue missed its forecast last quarter amid accelerating market-share losses for BlackBerry smartphones and tablets to Apple Inc., sending the shares down as much as 11 percent,” Scott Moritz and Hugo Miller report for Bloomberg. “RIM fell (RIMM) as low as $16.61 in trading before U.S. exchanges opened. The stock had dropped 68 percent this year before today, while Apple advanced 20 percent.”

“Third-quarter revenue was ‘slightly lower’ than the $5.3 billion to $5.6 billion the company had projected and earnings were ‘at the low to mid point’ of its forecast, according to an unscheduled statement from Waterloo, Ontario-based RIM today,” Moritz and Miller report. “RIM said it doesn’t expect to meet its full-year profit target.”

Moritz and Miller report, “The shortfall — the fourth straight quarter sales missed analysts’ estimates — puts more pressure on co-Chief Executive Officers Jim Balsillie and Mike Lazaridis as they seek to revive a company that once dominated the U.S. smartphone market. RIM’s market-share decline has prompted investors such as Jaguar Financial Corp. to call for it to divide into separate companies, seek a merger or sell itself.”

“RIM will record a $485 million pretax provision to revalue the inventory for the PlayBook tablet, which has failed to win over users in a market dominated by Apple’s iPad. RIM said more promotions are needed to drive demand for its tablet, whose shipments slumped to 150,000 units last quarter, the second straight drop. In its most recent quarter, Cupertino, California-based Apple sold a record 11.12 million iPads,” Moritz and Miller report. “RIM said device shipments in the fourth quarter will decline from the third quarter. In the fiscal third quarter ended Nov. 26, BlackBerry smartphone shipments were 14.1 million.”

Read more in the full article here.

MacDailyNews Take: Apple’s dinosaur slaughter picks up speed.

32 Comments

  1. How refreshing to see the the Apple iPad named straight out as the dominating product. No shilly-shallying about the tablet market. Just iPad. Got that right!

  2. The “Crackberry”, like crack itself, is fun the first few years (decade?) but if you stick with it the only thing people will eventually care about is the circumstances of your death.

  3. “RIM said more promotions are needed to drive demand for its tablet”

    Corporate blindness to actual quality and performance of their devices and services, due mostly to a sense of legacy entitlement, is what defines ‘dinosaur’ in the enterprise, as MDN picks up on. We’re in the post-CRT and the post-analogTV eras, without much screaming, and the post-pulsedialing phone era, and the post-carburetor era, and the post-horse era, ad infinitum….

  4. AAPL competition just stinks: Rimm 🙂

    They got caught off guard? Or foolish to not recognize what was coming: iPhone! in 2007 🙂

    AAPL must not let that happen later on!

    Buy AAPL now before it passes $401.

    2012 = $555 in 12 months from now!!

  5. Like this is a surprise to anyone except the trader doofuses who continue to think RIM is still competitive and will have new products to revive its dinosaur business model.

    Philip Elmer Dewitt has a good article about how AAPL continues to get no respect from the trader doofuses despite being the second largest company in thee world. And quarter after quarter providing increased sales and profits. And continuing to increase market share and transform personal computing…

    http://tech.fortune.cnn.com/2011/12/02/about-apples-incredible-shrinking-pe-ratio/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+fortuneapple20+%28FORTUNE%3A+Apple+2.0%29

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.