With the Apple iPhone and Android handsets stealing the headlines, BlackBerry maker RIM made some headlines of its own Thursday night. Only the news is not good. The company said that its shipments of smartphones will drop this quarter to the low end of its previous estimate which was a range of 13.5 million to 14.5 million units.
Bloomberg reported that the warnings have analysts reaching for their pencils to lower their numbers. Avian Securities' Matt Thorton said, "The sales on their existing devices must have fallen off a cliff," and added that "they are getting hit by a combination of a stale portfolio and heated competition on devices."
RIM's profit estimates for the current three month period were also below its previous estimates. The Canadian company now sees earnings of $1.30 to $1.37per share for the period vs. a forecast last month of $1.47 to $1.55 per share. Revenue will be lower than the $5.2 to 5.6 billion that RIM had as its prior estimate.
Not surprisingly, analyst Michael Walkley with Canaccord Genuity said that RIM's forecast shows poor sales for its high-end smartphones like the BlackBerry Torch 9800. RIM co-CEO Jim Balsillie was talking about the new BlackBerry devices like the Toorch and the just launched PlayBook tablet when he said, "All things being equal, we would love to have these products earlier and not be having this call. Because it’s such a big upgrade, it takes longer." Speaking of the BlackBerry PlayBook tablet, the company said that it is meeting RIM's estimates of sales.
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As a result of the report, RIM's NASDAQ traded stock was down 11% after hours. The stock was trading at $50.43.
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Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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