9/30/2009 10:48:00 AM
RIM results ‘disappoint’ as iPhone steals share
BlackBerry manufacturer RIM reported ‘disappointing but not disastrous’ quarter two results last week (25 September).
The company revealed a slight fall in profit for the quarter ended 29 August 2009, which analysts blamed on competition from the iPhone.
RIM reported revenues up 37% to £2.13bn for the quarter, compared with the same period one year earlier.
However, these were slightly down compared with the previous quarter ended 30 May 2009, when it reported revenues up 53% to £2.08bn.
Net profit fell to £296m, from £309m. The company said the result includes a charge of £69.9m for settling its litigation with Visto.
The results were below analyst expectations. IDC research director John Delaney said: ‘RIM’s quarterly results are disappointing but not disastrous. It is a little below the guidance, but it usually meets the guidance.’
However, Delaney said new products planned for later this year should boost RIM in the UK market.
He added: ‘RIM need to stay competitive and they do have some new products planned, nothing radical but some compelling adjustments to existing products. They have a few new things in the works, which will be in time for the Christmas market – on both sides of the Atlantic.’
The company shipped 8.3 million BlackBerrys during the second quarter, and 3.8 million subscriber accounts were activated, totalling 32 million worldwide.
The manufacturer said net subscriber additions should reach between four and 4.3 billion in the three months to November.
After finding success in the business market, RIM has been targeting the consumer, where the BlackBerry is competing with Apple’s iPhone.
Delaney said competitive pricing on the iPhone could have hit RIM’s latest results, but was confident of its growth in Europe. He added: ‘RIM only have a fairly small market share in Europe but they are very focused on growing market share outside North America, in Europe and particularly China.’