falling rapidly in popularity with consumers all around the world leaving the
business-centric smartphones behind as consumers
move in droves to Android-based smartphones and the iPhone. RIM is hurting
so badly that some have called for the company to sell off all the IP it holds
in an effort to get investors some measure of return on their money.
RIM is set to report earnings and revenue that are down
significantly compared to previous quarters. The company did put several new
smartphones on the market, but those phones came too late in the quarter and
will have no real impact on the upcoming financial report.
had been warned about the poor showing for the quarter.
Reuters reports that rather than focusing on how bad the previous
quarter was, investors will be looking ahead to RIM's predictions that next
quarter will look better. RIM launched updated version of the Bold, Torch, and
Curve smartphones and the company thinks those devices will help its efforts in
the maintaining market share.
Analyst Ed Snyder from Charter Equity said, "Even if a viable product
surfaces, gaining ground against entrenched iPhone and Android platforms won't
be easy." Snyder also said, "…they [enterprise customers] won't be
enough to offset a dying handset business."
The outlook for RIM’s PlayBook also doesn’t look to bright. The main drawback
is that the tablet can’t email seamlessly and doesn't yet have the Android app
capability RIM promised. Analysts think that about
600,000 PlayBooks have shipped in about three months and under 12 million
Blackberry smartphones making for the second straight quarter of decline.
Shipments are expected to rise to over 14 million in the current quarter.Updated @ 5:34pm EST
RIM has officially released its earnings for Q2, and investors aren't impressed. The company reported revenue of $4.17 billion (RIM had forecast $4.2 billion to $4.5 billion), while it reported net income of $329 million for the quarter.
Speaking of missing estimates, the company only shipped 10.6 million BlackBerry smartphones when it had originally forecast 11 million to 12.5 million BlackBerry shipments. Likewise, RIM shipped 200,000 PlayBooks compared to 500,000 in the previous quarter.