RIM profits slide by half in Q2 as company continues to struggle

0
396

Revenue also falls by 15 per cent with product shipments less than expected, but RIM predicts encouraging Q3 due to interest shown in new BlackBerry 7 products

BlackBerry maker Research In Motion (RIM) saw profits fall by more than half to £208 billion compared to £440 billion in the previous quarter, with revenue also falling by 15 per cent.

The company’s Q2 financial results ending August 27, 2011 also showed that this figure was also significantly down from profits of £504 million reported in the same quarter last year.

Revenues fell to £2.66 billion compared to £3.1 billion in the previous quarter and was also down 10 per cent from £4.9 billion in the same quarter last year.

During the three month period, RIM shipped around 10.6 million BlackBerry smartphones and some 200,000 BlackBerry PlayBook tablets.

RIM said it expected revenues to be in the range of £3.35-£3.5 billion for its third quarter ending November 26, 2011, shipping between 13.5 million and 14.5 million smartphones. It attributed these numbers to strong interest so far shown towards its new BlackBerry 7 smartphones, which include the Bold 9900 and Curve 9360.

RIM co-CEO Jim Balsillie said: “We successfully launched a range of BlackBerry 7 smartphones around the world during the latter part of the second quarter and we are seeing strong sell-through and customer interest for these new products.

“Overall unit shipments in the quarter were slightly below our forecast due to lower than expected demand for older models.

“We will continue to build on the BlackBerry 7 launch to drive the business as we focus our development efforts on delivering the next generation, QNX-based mobile platform next year.”

Ovum analyst Adam Leach said little should be read into these results and to expect improved results in the forthcoming quarter.

“This quarter’s results were based on RIM’s existing range of BlackBerry smartphones, which have been in the market for some time, and it’s clear that the company needed to bring new models to market.

“We expect RIM’s new range of BlackBerry smartphones based on the BlackBerry OS 7 to increase demand and shipment volumes for RIM in Q3.

“RIM now needs to focus its attention on its next portfolio refresh and ensure a smooth transition to the QNX platform, which is used in the BlackBerry PlayBook.”

NO COMMENTS

LEAVE A REPLY