Beleaguered RIM’s earnings fall 71% amid weak sales

“Research in Motion said on Thursday that a new line of BlackBerry smartphones that it hoped would turn around its flagging fortunes will not come to market until late next year,” Ian Austen reports for The New York Times. “It was the latest, and perhaps most significant, setback in a string of product delays and missteps from the company.”

“The phones, which the company had been expected to start selling early next year, will replace RIM’s aging operating system with a new one known as BlackBerry 10. The company said the change would give them performance and capabilities more like Apple’s iPhone,” Austen reports. “The phones are widely seen as RIM’s last hope for reversing the drastic decline of the BlackBerry in the United States. BlackBerrys accounted for just 9 percent of the United States’ smartphone market in the third quarter of this year, compared with 24 percent during the same period a year ago, according to market research firm Canalys.”

Austen reports, “Research in Motion’s third quarter net income fell 71 percent, hurt by giveaway pricing for the BlackBerry PlayBook tablet and costs related to a global service interruption in October.”

Read more in the full article here.

9 Comments

  1. It’s kind of like the way the sinking of the Titanic was portrayed in the movie. At first, there wasn’t widespread panic because what was going to happen in an hour or so hadn’t yet sunk in. People knew they were on a sinking ship, but they didn’t act that way.

    Same thing with RIM. A confluence of factors (converging on the big dot at the center of an EGG graph) are all conspiring to sink it. And yet the stock, however much it declines, declines relatively slowly, much like the mood of the passengers on the Titanic.

    Investors are wary, but not as wary as they should be (as anyone reading a TOST analysis of RIM +-PBAJ towards BUN a year ago would be)… to get the hell off the RIM ship as fast as they can before it sinks.

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