RIM shares fall after disappointing results

RIM shares fall after disappointing results

RIM shares fell more than 10% last week after the Blackberry manufacturer posted lower than expected earnings for the fiscal year and its fourth quarter.

The company shipped 52.3 million smartphones in the year-long period, up 43% from the previous year. Revenue also grew 33% in the same period to $19.9 billion.

Net income for the quarter reached $934 million, up almost 24% from a year ago.

However, the markets remained unimpressed, with shares falling more than 10%. The share price fall will raise the stakes for RIM’s launch of its Blackberry PlayBook tablet next month.

The company said its significant investment in the tablet, which is designed to rival the Apple iPad, will erode profits this quarter.

The tablet is part of a wider fightback campaign by RIM, which saw it launch the Torch last year, its first touch-screen with a slide out keyboard.

However, RIM's share of the global smartphone market fell to 14% in the fourth quarter compared with 20% a year earlier.

However, RIM is hopeful that its tablet will claw back market share for the company this year.

Jim Balsillie, co-CEO at RIM (pictured), said: ‘We are pleased to report record shipments and financial performance in fiscal 2011. As we enter fiscal 2012, RIM is in an excellent position to benefit from the continuing convergence of the mobile communications and mobile computing markets.

'We are laying a strong foundation for RIM's expanding market opportunity through focused investments and we are extremely excited about our smartphone, tablet and platform roadmaps.’

Written by Mobile Today
Mobile Today


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