Research May Not Be In Motion Anymore
Research In Motion reported its net profit plunged by more than half in its second quarter on Thursday after the stock market was closed. When I was looking into their data, I found some interesting facts that I would like to share with you all.
One year ago, RIM recorded a profit of $797 million or $1.46 per share on $4.62 billion. This year, net earnings dropped 58% to $329 million US, or 63 cents per share for the three months ended Aug. 31, after factoring in the costs of cutting 2,000 jobs from its workforce.
RIM shipped 10.6 million BlackBerrys but market analysts’ expectations were between 11 million to 12 million (Of course it is lowered than expectation because your phone keeps lagging and a lot less people use your BBM now).
It shipped approximately 200,000 BlackBerry PlayBook tablets (Your tablet only has a 7″ touch screen. The market’s standard 10.1″ now. What can I say?).
“They are just not selling. They are not competitive,” said Peter Misek, an analyst at Jefferies & Co. in New York.
Just for clarification, the new Blackberry smartphones with Blackberry 7 OS are not the smartphones that RIM designed to compete with iPhones and Android phones. RIM’s future depends on the next generation of BlackBerry devices that will be powered by their QNX OS and they promised to release the phone in early 2012. It is worth noting that RIM purchased QNX Software Systems in April of 2010 and they implemented the platform into their BlackBerry PlayBook tablet. But they only sold 200,000 PlayBook for this fiscal year. =)
Do you think RIM can turnaround the situation in 2012?