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RIM Co-CEO Jim Balsillie.  (Source:
2011 Q1 was even worse than expected for the BlackBerry maker

The bad news keeps piling on for BlackBerry manufacturer Research In Motion, and it's starting to have an effect on shareholders.

Last month, the Canadian company predicted a poor showing for its first quarter of the year. It predicted smartphone sales to fall, while the smartphone market overall is growing. It also warned that its gross margin would drop 41 percent.

For RIM, a lot was riding on the success of its tablet, the BlackBerry PlayBook. But early reviews have not been very favorable for the device, which reviewers generally concur was rushed out to market without key features such as email, contacts, and a calendar.

The outlook has gotten so tepid that RIM issues a surprise profit warning, thanks to increasing competition and delays in getting its next-gen BlackBerries to market, Financial Times reports. The move prompted shares to plunge by as much as 11 percent, $6.17 per share, in late Thursday trading.

The company predicted Q1 profits of $1.30-$1.37 per share, compared to $1.47-$1.55 it predicted last month. BlackBerry shipments would also be at the lower range of what it predicted last month (13.5-14.5 million units), and would skew more towards the cheaper models, according to FT.

"We all wish we could have got the new products out quicker," RIM Co-CEO Jim Balsillie said in a conference call with analysts, "but that just hasn’t happened." The turmoil is "transitory," he added, rather than being long-term.

According to FT, RIM is expected to address these issues at a software developer conference next week, where it may also unveil its next-gen BlackBerry devices.

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By rudolphna on 4/29/2011 10:27:11 AM , Rating: 2
Who has a blackberry these days, honestly.

RE: Hah!
By Pirks on 4/29/2011 10:52:27 AM , Rating: 2
some big corporate suits maybe but who cares about those eh? ;)

RE: Hah!
By quiksilvr on 4/29/2011 12:11:55 PM , Rating: 2
They are all getting iPhones and Droids now anyways.

RE: Hah!
By Pirks on 4/29/2011 12:55:07 PM , Rating: 2
Keep dreaming.

"I think 99% of the Android phones are junk. If the iPhone had a physical keyboard I would probably have one of those" (C) Dean364

RE: Hah!
By theslug on 4/29/2011 7:32:41 PM , Rating: 2
It's pretty much anyone in a corporation. If they have a smartphone of any kind that's owned by the company, it's probably a Blackberry.

RE: Hah!
By ochentay4 on 4/29/2011 11:29:47 AM , Rating: 2
In Argentina all carriers promote BlackBerry. I hate them. Im in love with Android and its difficult to buy one, and prices are super high. Sigh.

RE: Hah!
By CityZen on 4/30/2011 9:52:12 PM , Rating: 2
I feel your pain, fellow argie :)
Just give it time. Prices will eventually come down, and iPhones, Windows phones and Androids will become more popular than Blackberries just as it's happening in more developed markets

RE: Hah!
By Dean364 on 4/29/2011 11:40:08 AM , Rating: 2
I love my Blackberry. It's small, light and easy to use. I could care less about Apps, they're a waste of time. Give me a phone that has contacts, a calendar, and a basic web b rowser and I'm happy. However, the part I hate about Blackberry is that they make you pay for stuff everyone else gets for free. I spend an extra $40 a month just so I can connect it to a BES Server. And don't get me started on the Playbook, was a disaster! No email unless you "bridge" it to a Blackberry phone??? They do not have enough market share to force that kind of connection. C'mon. Who do they think they are, Apple?

I think 99% of the Android phones are junk. If the iPhone had a physical keyboard I would probably have one of those.

RE: Hah!
By RussianSensation on 4/29/2011 2:27:18 PM , Rating: 2
But on an Android or iPhone you also have contacts, calendar and advanced web browsing features. On top of that as multimedia devices, they destroy the blackberry. Add to this much superior screens, faster and more user friendly OS (customizable for Android) and far thinner and better looking phones, and there is 0 reason even consider a BB. Unless BB does something drastic, they will be left behind by W7, Android and iOS far behind by 2015.

RE: Hah!
By Pirks on 4/29/2011 4:31:53 PM , Rating: 2
on an Android or iPhone you also have advanced web browsing features <- this link dispels your dumb lies about RIM browsers which are actually better than Google/Apple crap
Unless BB does something drastic
They already did it with QNX, wake up and smell the ashes, lamer :P

RE: Hah!
By formulav8 on 4/29/2011 12:30:52 PM , Rating: 2
Well tell that to my wife. She still wants one.

RE: Hah!
By retrospooty on 4/29/2011 2:43:36 PM , Rating: 1
No, you need to tell your wife why its a bad purchase int eh year 2011. Blackberry was great in 2005.

RE: Hah!
By teng029 on 4/29/2011 2:47:32 PM , Rating: 2
i'd sooner be bled from my liver than carry another crapberry.

To Be Fair...
By bplewis24 on 4/29/2011 11:09:37 AM , Rating: 2
But early reviews have not been very favorable for the device, which reviewers generally concur was rushed out to market without key features such as email, contacts, and a calendar .

Reading this sentence makes me cringe. To think that WP7 was recently criticized for rolling out without "key features" such as multi-tasking and the like, you would think that Blackberry would be absolutely eviscerated for rolling the Playbook out without CORE features such as email, contacts and a calendar.

I mean, that is absolutely ridiculous.


Not Fair
By neogrin on 4/29/2011 3:14:14 PM , Rating: 2
RIM Co-CEOs Jim Balsillie and Mike Lazaridis were hear in the background muttering "That's Not Fair".

BB 9780
By mycropht on 4/29/2011 4:54:15 PM , Rating: 2
My second BB is 9780 Bold and by using it I can say some things are very wrong in RIM. E.g. you can make screen waves by lightly pressing sides by the screen and until a recent SW update the GPS would work only by accident (on BB support forum they were playing dumb). Now it works but you need a lot of patience to get a fix - no fear of RIM tracking their users. Interesting thing is that the GPS was quite problematic also on my previous BB until 2 or 3 updates. They got the push mail thing really well but now everyone has it. They made a really good miniature keyboard and now keyboards are out (I still want it). Instead of working like hell on the next generation BBs they were counting money. Maybe they will make better phones once there will not be so much money to count.

By smilingcrow on 4/29/2011 7:40:17 PM , Rating: 2
The guys at RIM are just getting totally rimmed.

Let's be honest
By Lord 666 on 4/29/2011 7:48:10 PM , Rating: 2
They are a dumb Canadian company with co-CEOs. Seriously, what is the point of co-CEOs? For two people to fail?

RIM's best luck of growth is being purchased by Cisco.

By MarioJP on 5/4/2011 1:58:22 AM , Rating: 2
Part of the competition is to make companies fight back. I am sure RIM isn't going to take this. Despite what most says about their phones. They are great phones overall. What rim needs to do is ditch the Marvel process and slap in a Snapdragon processor.

Up until now rim really didn't care about performance and its starting to show and bite them in the ass.. If RIM adds a faster processor on their phones the outcome could change and will make a difference. Please start making phones that runs at least 1ghz. no more 600Mhz phones please.

By Belard on 5/1/2011 5:32:42 AM , Rating: 1
I have no dreams to see RIM go out of business, etc - hell, not even MS should die.

I never liked how the UI functioned on blackberries. But each their own. We all DON'T drive the same color or type of cars. Eat the same type of food, have the same brand or style of TVs, the same underwear. etc etc...

But pretty much most people, if not anyone I know who HAD blackberrys - ever wanted one after using an Android or iPhone.

One of the companies I work for had gone through 5-6 models of blackberrys over the course of 3 years (and 1-2 Windows Phones). Had to constantly reset the blackberry (pull the battery & SIM), go into some packages of some sort, delete them, then have the phone re-download certain updates. It was constant! Every few months, the bloody phone would JUST NOT #@($*&@$( work!

The screens were dinky for web-browsing, they were slow. Email - eh.

I had the people in the company replace their blackberries for iPhone 2, one by one. As more people saw how better they worked over blackberries / WinPhones, they'd upgrade. After 3 years, only had one or two issues with email - MINOR issues.

Personally, I never bought an Apple product in my life until a month or so ago with the iPad-1.

Why is the Playbook selling like crap?!

Who in their right mind WOULD buy a product with beta-software installed, with missing basic functions like Calendar, contacts, email, etc? HOW DIFFICULT is it to make such tools?!

Sure Apple made many improvements to the iPad OS since its first release, BUT IT WORKED! IT HAD THE BASICS COVERED!

RIM expected people to spend $500 for a new device with a smaller 7" screen that is effectively broken?! Hmmm.. there is a cheaper $480 iPad device with a much better screen that ISN'T 16:9 that works.

ASUS has a much COOLER and usable design with their Transformer. It has a 10" screen and costs $400. I hope it takes off... IMHO, I think its the best non-Apple tablet on the market. The XOOM is interesting... but it starts at $600!! $120 over an iPad2... for what?!

I think one of the failures of ALL these "me-too" tablets is the 16:9 tiny baby 5~8" screens.

Yes, I have the TWC TV video app on my iPad which allows me to watch some TV channels from it. But I use a tablet 90% of the time in portrait mode. Like a book. NOT as a media video player.

"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg

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