BlackBerry maker RIM face 71% fall in net income

BlackBerry maker RIM face 71% fall in net income

For the past couple of years, Research in Motion (RIM) has been struggling to compete with iPhone and smartphones running Google’s Android software, such as HTC, Samsung and Sony Ericson.
In a recent statement, the BlackBerry makers has said that the sales of BlackBerry phone will fall sharply in the upcoming holidays because of their tussling competition with the largest cell phone companies.

RIM stated that their net income sank 71% as revenue fell in the past few months. The company had to take a large accounting charge because of the sale of tablet computer, PlayBook, at
a deep discount. They pocketed $265m (£171m) for the quarter that ended on November 26. A year ago this earning was $911m, or $1.74 per share. The Canadian company said revenue fell 6% to $5.2bn.

The company shipped 14.1m BlackBerry smartphones and 150,000 PlayBook during the third quarter but their sale warned the company about the results. Now the current forecast is not helping
the sale at all despite RIM has said it would sell fewer BlackBerrys in the current quarter. They would ship between 11m and 12m BlackBerrys and earnings would be in the range of 80-95c a share.

Jefferies & Co analyst, Peter Misek, said in New York that RIM needs launch its new phones out fast or they could lose money in future quarters.

The company’s co-CEO, Jim Balsillie, said, “It may take some time to realise the benefits of these efforts and the platform transition that we are undertaking, but we continue to believe
that RIM has the right set of strengths and capabilities to maintain a leading role in the mobile communications industry.”

RIM is still in deep struggle to compete with the iPhone and other smartphones running Google’s Android software. On the other hand, they are also struggling in finding a niche in the
tablet computer market, which is currently dominated by Apple’s iPad.

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Posted by Zeeshan Gohar on Dec 17 2011. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry