Unsold PlayBooks help drag RIM profits down 71 per cent

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News that BlackBerry 10 smartphones will be delayed until late next year adds to poor Q3 results woe

Net income at Research In Motion (RIM) fell 71 per cent year-on-year in the quarter ending November 26, from £587 million to £171 million.

The fall was in part due to the firm taking a £230 million charge on unsold stock of its PlayBook tablet.

Revenues fell slightly from £3.5 billion in Q3 of 2010 to £3.2 billion in the quarter, and the firm’s gross margin fell to 27.3 per cent during the quarter, compared to 43.6 per cent in the same quarter a year ago.

The Canadian firm also revealed that it expects to sell between 11 and 12 million handsets in the current quarter, down from 14 million in the same quarter a year ago.

The poor results were followed by further bad news from the Canadian firm, as it announced that its new range of BlackBerry 10 smartphones will be delayed until late 2012.

RIM co-CEO Mike Lazaridis (pictured) said that the firm would not be able to release the new devices in Q1 next year because the advanced chips they use will not be available until mid-2012.

The BlackBerry 10 smartphones will run software based on the QNX platform used on the PlayBook.

 

 

 

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