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RIM booking a $485 million charge in quarterly earnings due to Playbook sales

Posted: , by Victor H.

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RIM booking a $485 million charge in quarterly earnings due to Playbook sales
RIM’s December earnings release is nearing, but while there are still two weeks prior to that, the Canadian company has already announced that it will be registering a $485 million “pre-tax provision” to make up for unsold PlayBook inventory. Put in simpler terms, the company is writing off the sum just because it doesn’t believe it can sell the PlayBooks. The new setback also means that RIM no longer expects to meet its goal for diluted earnings of $5.25 to $6.00 per share.

On the positive side of things, customers will continue seeing slashed prices on RIM’s BlackBerry PlayBook as the company aims to clear inventory. Luckily, RIM is not quitting the QNX-based PlayBook completely as was the case with the HP TouchPad, but will continue developing new products. "RIM is committed to the BlackBerry PlayBook," Co-CEO Mike Lazaridis said. "Early results from recent PlayBook promotions indicate a significant increase in demand across most channels."

The Canadians also expect to take a $50 million hit related to the couple of days of service outage that could be felt around the world. At these troubled times, it’s good news that the company’s smartphone shipment estimate remains unchanged at 14.1 million. Finally, RIM warned that its fourth quarter results will be lower than those it posted in the third trimester.

source: Reuters

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posted on 02 Dec 2011, 08:07

1. c.hack (Posts: 614; Member since: 09 Dec 2009)

Death Spiral

posted on 02 Dec 2011, 08:11 2

2. ZEUS.the.thunder.god (unregistered)

well good luck RIM

posted on 02 Dec 2011, 08:25

3. droiddomination (Posts: 203; Member since: 01 Dec 2011)

man i hope i can p/u a cheap playbook for $99. and somehow get android on it.

posted on 02 Dec 2011, 10:45 1

4. HTCiscool (Posts: 449; Member since: 16 Jul 2011)

Ill probably get a Playbook for $200 sometime soon...

Far more capable and smooth than the Touchpad lol

posted on 02 Dec 2011, 15:02

5. downphoenix (Posts: 3165; Member since: 19 Jun 2010)

This is true, the PB actually has a great processor in it (same processor as the Kindle Fire and Nook Tablet uses) and has great performance and all that. I do hope Blackberry doesn't call it quits on Playbook, they know now they will need to be more competitive in pricing, the hardware was there, which traditionally has been a problem with them, and it wouldnt hurt to introduce a 10 inch model.

posted on 03 Dec 2011, 09:56 1

7. Rio1983 (Posts: 25; Member since: 03 Dec 2011)

Not true. You can Overclock the processor and it runs more fluently and actually responds better than the playbook. Jus sayin.

posted on 03 Dec 2011, 09:55 1

6. Rio1983 (Posts: 25; Member since: 03 Dec 2011)

Playbook is ok but a more polished and savy touchpad could easily be the industry leader.. If the Hp Touchpad would have came out at 199.99 no one would even care about a kindle fire .

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