9/26/2008 3:53:00 PM
RIM share price down by 15% as growth rate slows
The unrelenting growth of RIM was dented last week as it revealed its Q2 results, which were below expectations hammering the firm’s share price.
RIM has been identified as a major competitor by Nokia and sold over 11 million Blackberry devices in the first half of this year.
Although it made a £270m ($495m) profit for the quarter, it was below the guidance the company had given analysts and as a result saw RIM’s shares fall by 15% on the American stock exchange.
Analysts were particularly concerned by the effect on RIM’s margins. Referring to the tough market conditions, RIM’s co-CEO Jim Balsillie said: ‘The year is proving to be an extraordinary year for RIM and its partners.’
While its share price has dipped, RIM’s overall market share is expected to keep rising. The manufacturer will be boosted in the UK by its tie-up with 3 on the Bold - the first ever Blackberry to be ranged on 3.
Blackberry’s push for the consumer market is also likely to be sustained when it releases it the first ever Blackberry Flip phone. The Pearl Flip 8220 will be out in the USA in time for Christmas, and is expected in the UK in the new year.
Blackberry will also enter the touch screen market soon with a device expected to be called the Blackberry thunder.