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Poor BlackBerry 10 Phone Sales Result In First Quarter Loss For RIM

June 29, 2013
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redOrbit Staff & Wire Reports – Your Universe Online

Shares of Research In Motion (RIM) plummeted by more than one quarter on Friday after the BlackBerry maker posted larger than expected losses, various media outlets are reporting.

The Ontario-based technology firm revealed a quarterly loss of $84 million for the three months ending on June 1, according to BBC News. That figure was an improvement over the $518 million net loss reported during the same period in 2012, but nonetheless stunned Wall Street analysts who had expected the company to produce a $25 million operating profit, added Juliette Garside of the Guardian.

RIM also announced that they would post an operating loss for the next quarter, which runs through September. Following the news, the company’s shares plummeted nearly 28 percent to $10.46 on the Nasdaq exchange at the end of trading Friday, said Reuters reporters Euan Rocha and Alastair Sharp.

According to Rob Gillies of the Associated Press (AP), smartphones running RIM’s new Blackberry 10 operating system have not performed up to expectations. The company revealed that it had sold 6.8 million phones overall, one million fewer than last year. Those figures also include older models.

“It wasn’t until well into a conference call with analysts that RIM announced that 2.7 million of the devices sold in the quarter were Blackberry 10 models,” Gilles said. “RIM’s Blackberry 10 operating system is critical to the company’s comeback. New phones running the BlackBerry 10 software began selling around the world this year.”

The touchscreen BlackBerry Z10 and the keyboard-outfitted Q10 have both received “positive reviews,” but both devices saw their US release delayed, he added. While the first quarter included “a substantial period of sales” of the Z10 in the States, it did not include sales figures for the Q10, which only went on sale in the US earlier this month. However, based on “sales results and RIM’s projections,” it does not appear that either device is selling well.

RIM also announced that it would no longer develop new versions of its Playbook tablet computer.

“During the first quarter, we continued to focus our efforts on the global roll out of the BlackBerry 10 platform,” RIM president and chief executive Thorsten Heins said, according to The Telegraph. “We are still in the early stages of this launch, but already, the BlackBerry 10 platform and BlackBerry Enterprise Service 10 are proving themselves to customers to be very secure, flexible and dynamic mobile computing solutions.”

“Over the next three quarters, we will be increasing our investments to support the roll out of new products and services, and to demonstrate that BlackBerry has established itself as a leading and vibrant player in next generation mobile computing solutions for both consumer and enterprise customers,” he added.


Source: redOrbit Staff & Wire Reports – Your Universe Online



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