RIM cuts its estimates of shipments, revenue and profits for the current quarter

RIM cuts its estimates of shipments, revenue and profits for the current quarter
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 $1.37 per 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.

As a result of the report, RIM's NASDAQ traded stock was down 11% after hours. The stock was trading at $50.43.

source: Bloomberg via AppleInsider


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7 Comments

1. Whateverman

Posts: 3295; Member since: May 17, 2009

Blackberries not selling well??? Shocking!

6. PhoneLuver

Posts: 481; Member since: Jul 05, 2010

Hahaha!!

2. jordanx

Posts: 23; Member since: Apr 20, 2011

In the future RIM and SYMBIAN will be dead

7. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Here is an idea - dump all of the various BB models other than the Torch and put WP7 on it. That would save RIM a boatload of S/W development cash and they could concentrate on just one particular handset. They might even beat Nokia at the game of giving up on software development. Then it really would be a 3-way race between Android, iOS and MS.

3. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Sounds like even the corporate and government customers are looking elsewhere. Depending on how quickly Apple is able to fix the iTracker 'bug', RIM's next quarter may not be looking so good either....

4. cheetah2k

Posts: 2271; Member since: Jan 16, 2011

Playbook to the rescue!!! If this is the start of RIM's return to greatness, look out everyone!! QNX is an Android beater!!

5. protozeloz

Posts: 5396; Member since: Sep 16, 2010

Too bad rim had little interest on its future

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