RIM’s Q1 results fell below market expectations, despite the company reporting a record
11.2million devices shipped, a 24% increase in revenues and a 60% increase in
new subscriber accounts.
The company's shares fell on the back of the results in the face of increasing
competition from Android handsets and continuing competition from Apple.
The Canadian handset manufacturer reported a growth in revenue of 24% over
the same quarter last year to £2.86 billion. In the same period, BlackBerry
smartphone shipments grew more than 43% against the same period last year (11.2
million) with RIM shipping its 100 millionth BlackBerry smartphone during the
In addition, the BlackBerry subscriber account base grew around 60% over the last year to 46 million, with 4.9 million net new subscriber accounts added in
The company is pinning its hopes on the launch of a range of Blackberry
devices in the next few months, expected to include a handset featuring a sliding
keyboard and another model with a clamshell design.
RIM is also about to launch a new version of its operating system, the
Blackberry 6, which it is hoping will provide a challenge to its competitors.
Jim Balsillie, co-CEO of RIM, said: ‘RIM achieved significant earnings growth
and shipped a record 11.2 million devices during the first quarter, including
its 100 millionth BlackBerry smartphone.
‘We continue to be focused on growing our business globally and we believe
that the range of exciting new BlackBerry products being released in the coming
months will create significant opportunities to accelerate RIM’s growth in the
second half of the fiscal year.'
RIM dropped as much as £2.25, or 5.7 percent, to £37.33 in late
trading after the results were announced. The stock has declined 13 percent
this year on the Nasdaq Stock Market. RIM said today it plans to buy back as
many as 31 million shares.