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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.

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