RIM grows revenue 24% but still underperforms

RIM grows revenue 24% but still underperforms

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 quarter.

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 Q1.

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.

Written by Mobile Today
Mobile Today


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