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BlackBerry Playbook
RIM stock plummets in after hours trading after it reports fiscal Q2 earnings

We reported earlier today that dark clouds were looming over Research In Motion. This afternoon, RIM announced its fiscal Q2 earnings [PDF] and things aren't looking so pretty. The company reported net income of $695 million for the quarter compared to $934 million in fiscal Q1. Its fiscal Q2 earnings were also down compared to the $769 million in made in the same quarter last year.

RIM stock is taking a beating in after hours trading, currently down 15.11 percent to $29.93.

When it comes to hardware sales, RIM announced that it shipped over 13 million BlackBerry smartphones and roughly 500,000 Playbook tablets. RIM wouldn't specify how many Playbooks it has actually sold at this point. 

For his part, RIM Co-CEO Jim Balsille had this to say about this company's performance during fiscal Q2: 

Fiscal 2012 has gotten off to a challenging start. The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter. RIM’s business is profitable and remains solid overall with growing market share in numerous markets around the world and a strong balance sheet with almost $3 billion in cash. We believe that with the new products scheduled for launch in the next few months and realigning our cost structure, RIM will see strong profit growth in the latter part of fiscal 2012. 

As a result of its latest misfortunes, RIM also announced that it will "streamline operations", which means that a "headcount reduction" will take place. RIM didn't go into specifics on how many workers will lose their jobs, but the company has a current workforce of about 17,500 employees.



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Marketing speak
By jordanclock on 6/16/2011 6:34:24 PM , Rating: 5
That's a lot of marketing speak just to say "The Playbook is failing and we're firing everyone who was involved."




RE: Marketing speak
By Warwulf on 6/16/2011 7:30:26 PM , Rating: 3
And good riddance! The Playbook was a really halfbaked idea that ended up getting further undercooked in production. Fail.

RIM has had trouble innovating and moving beyond it's core enterprise market. As other manufacturers make headway in that area, RIM may soon find itself out of a market. It's a testament to companies that rest on their laurels and squander opportunities.


RE: Marketing speak
By Pirks on 6/16/11, Rating: -1
RE: Marketing speak
By Chaser on 6/16/2011 11:18:21 PM , Rating: 2
1. RIM has been in a market coma for far too long while the competition rose around them while RIM stood there stoically and watched them being built. RIM's management completely over credited their (collapsing) Blackberry popularity and then in an over rushed panic tried to market a couple of new smart phones. And the reputable review sites, Engadget, BGR, and Gizmodo responded and rated them with a disappointed yawn.

2. Then when tablets became popular and somewhat credible to market RIM's Playbook was met with the same mediocre reviews. More like a thud.

3. So you have one and it's the greatest uber device in history. Great. Prop your wonderful nowhere tablet up on a table and admire it and yourself for having such keen insight that the rest of the tech informed world failed to see.

4. No one bought the Playbook because amidst the competition of the iPads and even the (hopefully) emerging Android tablets the Playbook was met with another yawn.

Android tablet sales are soft because most Android enthusiasts aren't jumping in droves to buy a tablet. Unlike the iPhone sheep that have to have their matching cool tablet. Where does that leave the Playbook and really the rest of RIM? Squandered years late and and millions of market share dollars lost.

Its unfortunate to see a once viable competitor asleep at the helm and now slowly sinking like the Titanic did as competition is a good thing for consumers. But Apple and Android won't be noticing this gnat.


RE: Marketing speak
By Pirks on 6/17/11, Rating: 0
RE: Marketing speak
By eek2121 on 6/17/2011 1:27:44 AM , Rating: 2
Never thought i'd hear myself say this, but i'm gonna agree with Pirks. Having never owned a Playbook (only rim device i EVER owned was a blackberry tour, and it defined the word 'turd'.) I expected it to be crap. A friend of mine has a playbook (got it for free during the app challenge.) and i had an opportunity to spend a few hours on it. Amazing device. It's definitely on my list of thing to buy. WAAAY better than the iPad or even the Galaxy Tab 10.1. User interface was actually optimized for touch (unlike the iPad or even Android 3.x.) and is extremely responsive. I have a feeling that most of the people bashing the Playbook (or RIM) have never used one in their lives. Playbook != Blackberry.

Disclaimer: I hate RIM in general (too corporate) and don't have any shares (too broke) or any RIM devices at this point in time (except a deactivated piece of shit tour sitting in storage somewhere).


RE: Marketing speak
By Pirks on 6/17/2011 1:46:47 AM , Rating: 1
well, the reason why Playbook is so freakin' awesome compared to other RIM devices is the QNX. if RIM haven't bought QNX they would be dead by now, but with such a main caliber battelship cannon like QNX they are going to be pretty tough nut to crack for Jobs and Google, why? because iOS and Android are only good until you start comparing them to QNX... at which point your realize both are same ugly quickly cobbled together P.O.S. and QNX is where the real deal is, QNX is like Windows NT and iOS/Android is like Win98 if you know what I mean

now the other RIM devices don't use QNX so my guess is this is the reason for their pending demise and for the RIM troubles in general. but RIM is going to move them to QNX later as well, Playbook is the bleeding edge device for RIM and they bet their future on it and on QNX

I agree RIM was pretty dumb not to buy QNX a couple of years earlier, but come on, AMD was dumb not to buy out ATI earlier and not to start working on Llano earlier too

imagine AMD coming out with Llano in 2008. imagine RIM coming out with QNX smartphones a year ago, smartphones that are as awesome as Playbook. industry world is full of fail, EVERYONE is late and acts slowly, only freaking Jobs has ability to see the future so he's the only exception. EVERYONE else is late and is fail, MS, Google, HP, Palm, you name it. RIM is just all the other companies who don't have a visionary and prophet like Jobs onboard. no better but no worse. no matter what engadget/chaser/other clowns are spewing around. trust me on that, I'm not reading reviews here, I'm just telling my real life experience with the device, that is all.


RE: Marketing speak
By themaster08 on 6/17/2011 3:35:28 AM , Rating: 2
Although not ever using a PlayBook, I agree with you about people being so subjective. The PlayBook is something I would really like to try, and it's much cheaper than most Androids and the iPad, at least here in the UK.

However, I see a few problems that are in RIM's way, no matter how good the PlayBook is:

1) C'mon, Pirks, do you really expect people to be objective about everything they buy, particularly many of those that own Apple products? Apple is like a religion. Even if its followers are proved wrong with solid evidence, they'll still refuse to listen.

2)Another thing about Apple; I find that many of the teenagers, and other non-business consumers that puchased BlackBerry's in the past have mostly transitioned to the iPhone. It was cool for them to own a BlackBerry, particularly for BlackBerry Messenger. They were part of the in-crowd. That craze seems to have died down somewhat. The next "thing to have" is the iPhone, and I'm afraid I don't see that changing for a long time. This craze has also transitioned to the iPad, due to their experiences with the iPhone.

3)Those that have previously owned a BlackBerry product, that have now moved onto a different device may think that this is more of the same, or not even want to bother trying this device. Why? Well firstly they may have become extremely fond of the platform they are currently using and see no reason to switch back to BlackBerry. Their reputation may be tarnished due to lacklustre past experiences. Products like the iPad are shoved in peoples' faces each time advertisements are shown. It's becoming more and more of a household name, akin to the iPhone, and more-so, the iPod.

4)I see your point about half-baked products later becoming more feature-rich and stable, but that missing functionality will not bring in the more informed customer, that will see another tablet with more functionality and look elsewhere, instead of having to wait months for that same functionality. Then again, why should people wait for functionality that already exists in other devices? The point I am making is BlackBerry are not Apple, and cannot get away with shortcomings. Double standards? Sure, but then think of their target markets and you'll realise why.


RE: Marketing speak
By Pirks on 6/17/2011 4:20:08 AM , Rating: 2
yeah I agree that RIM dropped the ball somewhat with their smartphones and lousy old OS on them but they realized that now and do all they can to replace the old OS with a modern one and make a come back, and the first shot (Playbook) is really good. they just have no choice in this crazy market, they have to release early, release often, release half baked and improve later, constantly bombard ppl with ads and stuff like that... yes this is not ideal and ppl will always use double standards but what can you do? if you release polished stuff but late all engadget Apple whores will spit at you and bring you down anyway, RIM just has no choice now but to move as fast as they can, or they won't survive

besides releasing half-finished product and add features later Apple-style is also very wise move as your users test device for you, you know. you can do this testing in such a way that doesn't hurt users a lot, you just have to release only a few features a pop but make them polished. by doing these baby step releases you a) test you stuff b) build the brand c) spread the word. it worked for Apple and should work for RIM too. it won't do wonders since Rim has no RDF and no Jobs but it is still better than polishing stuff for years and come onto the market after everyone has moved on. this is just stupid and RIM does better than that, fortunately

question is: is RIM too late to save themselves or they still have time. can't say for sure, AMD was down and almost dead for a while too, I don't think RIM can't go through the same routine and not survive, maybe they will do AMD 2.0 thing and raise from the dead, who knows. judging by Playbook they have quite a lot of talented folk in house so if they don't start firing them all right now... they have a good chance. we'll see


RE: Marketing speak
By melgross on 6/17/2011 8:27:44 AM , Rating: 2
They dropped the ball with their tablet as well. I don't know what you find so compelling about it, but for the half hour I used it I was far from impressed. It is built well, as it should be for a tablet with half the screen size but the same price as the iPad. But QNX needs a LOT of work. And there is no real software available, and without that, it's pretty much useless, and will not compete.

So far, they're behind on delivering mail; missed that deadline, and in the call said it would arrive late this summer. Not good.

So who is this for right now, other than BB owners? No one. I hope RIM does get it's act together, as competition is good, but it doesn't look as though these two guys know what's happening. They refused to take any blame for RIMs' poor performance, and kept on praising each other. Embarrassing!


RE: Marketing speak
By Pirks on 6/17/2011 1:22:40 AM , Rating: 2
quote:
No one bought the Playbook
RIM shipped 500,000 of them already just in North America, and they are launching it in 16 more first world countries (Western Europe, etc) right now, so you can just stuff it like all the other engadget clowns who don't know sh1t

and next time when you read the "OOOHHH AAAHHHH I'm ejaculating in your mouths guys 'cause I'm holding THE HOLY IPHONE 5 GRRRZOMG!!!!!!111!! IN MY HANDS!!!!" reviews from engadget - you will remember my words. unless you are a tony swash clone of course. I don't understand how people can believe these Steve Jobs deep throating cock suckers at engadget and other pro-Apple "review" sites. come on folks MAKE YOUR OWN JUDGEMENT, DON'T LET yet another Jobs cock sucker on a secret Apple payroll to skew your decision making with their so called "reviews" - REVIEW THE STUFF YOURSELF! who are you guys, real men who can think for themselves or are you Apple sheep/Engadget sheep/Gizmodo sheep? come on, don't disappoint me.

I'm talking about my real experience and you are showing me Apple propaganda from Gizmodo in response? really? nice try Chaser AKA Tony Swash 2.0, didn't expect THAT from ya buddy...


RE: Marketing speak
By Belard on 6/17/2011 6:42:34 AM , Rating: 2
Okay... you got me sold...

er... Next time I'm in a computer store that actually sells the Playbook, I'll try to play with it for 10-15 minutes and let my kid figure it out too.

Since we have an iPad-1, we both have experience with tablets. Android 2.x tablets sucked. To have bothered was a mistake.


RE: Marketing speak
By melgross on 6/17/2011 8:36:31 AM , Rating: 3
That is one of the most asinine, filthy posts I've read in a long time, and contains nothing useful.

You don't seem to understand just what "shipped" means. It means product that is in distributers warehouses, on retailers shelves, and in trains, trucks and ships bound for those warehouses. It has nothing to do with "sold", as in something that a consumer or business bought and paid for. When these clowns were asked how many phones and tablets sold, they looked at each other and said that they didn't have the numbers. BS they didn't. They didn't want to give them out, because they would be so low. Never trust "shipped" numbers. They mean nothing other than the channel is being stuffed. When they announce how many they sold, then you can either gloat, or hide under a rock.

And if you want to curse me out, fine, have your tantrum if it makes you feel better


RE: Marketing speak
By eek2121 on 6/17/2011 10:10:00 AM , Rating: 2
Do you not understand how the supply chain works? Shipped IS sold from RIM's standpoint. They already made the money their standpoint. It doesn't matter if the Playbooks are sitting in warehouses for a year. Another thing: Considering that they've shipped 500,000 playbooks, people MUST be buying them otherwise they wouldn't be continuing to ship them.


RE: Marketing speak
By Flunk on 6/17/2011 9:48:35 AM , Rating: 3
What happend? I thought you were an Apple fanboi. Did Steve Jobs come over to your house and beat you up?


RE: Marketing speak
By Tony Swash on 6/17/2011 2:40:29 PM , Rating: 2
quote:
RIM shipped 500,000 of them already just in North America, and they are launching it in 16 more first world countries (Western Europe, etc) right now, so you can just stuff it like all the other engadget clowns who don't know sh1t

and next time when you read the "OOOHHH AAAHHHH I'm ejaculating in your mouths guys 'cause I'm holding THE HOLY IPHONE 5 GRRRZOMG!!!!!!111!! IN MY HANDS!!!!" reviews from engadget - you will remember my words. unless you are a tony swash clone of course. I don't understand how people can believe these Steve Jobs deep throating cock suckers at engadget and other pro-Apple "review" sites. come on folks MAKE YOUR OWN JUDGEMENT, DON'T LET yet another Jobs cock sucker on a secret Apple payroll to skew your decision making with their so called "reviews" - REVIEW THE STUFF YOURSELF! who are you guys, real men who can think for themselves or are you Apple sheep/Engadget sheep/Gizmodo sheep? come on, don't disappoint me.

I'm talking about my real experience and you are showing me Apple propaganda from Gizmodo in response? really? nice try Chaser AKA Tony Swash 2.0, didn't expect THAT from ya buddy...


You may want to calm down a bit mate - you know - for your health's sake - it's only a consumer durable. You might also consider where all the homo-erotic/phobic imagery comes from - perhaps seek some help and friendly advice - sort a few things out.

I don't want to get you going again but by the time the Playbook is launched in all those countries RIM will be worth about tuppence at the current rate of decline.


RE: Marketing speak
By Pirks on 6/17/2011 2:44:00 PM , Rating: 2
Mike Dell said the same about Apple once. Hello there Tony Swash AKA Mike Dell 2.0


RE: Marketing speak
By Tony Swash on 6/17/2011 1:22:32 PM , Rating: 1
There is no such thing as a tablet market. At least not as it is imagined by many on this forum.

There is an iPad market which is very large, very, very profitable and growing very fast.

There is another market, we could call it the 'the traditional tablet market', this is a derivative of the tablet market that Microsoft has been championing for many years. In this sort of proto-market various manufacturers launch various types of tablet devices. These devices all have a number of things in common, they sell in relatively small quantities (compared to the iPad market), the products are designed and marketed as having 'lots of features' and 'really good specs' (none of which normal consumers care about), and none of these devices make much money for their makers. Thus the various tablet models come and go.

The mistake that is often made is to think that there is such a thing as a single all encompassing tablet market, and that it is like the phone market or the PC market. Such a view massively underestimates the scale of the disruption that the iPad has caused and which continues.


RE: Marketing speak
By Pirks on 6/17/2011 2:26:36 PM , Rating: 2
Crappy products can have very large market share for some time, no big deal. Windows 3.x and 9x which was DOS based had humongous market share too although it was pure crap. Important point for me is that Playbook feels better and is more mature technology wise so I made my choice. The sheep like you who blindly follow market share can have your own choice, I don't mind. Crappy Apple tablet may have its huge market share like Win 3.x did for a while but it will go down replaced by mature product, like 3.x was replaced by NT. The deal is it's most likely to be replaced by another Apple product, less crappy than now, but still... innovators like RIM will get their slice of the market I'm sure. Not everyone is a sheep you know, some people are smart ;)


RE: Marketing speak
By Tony Swash on 6/17/2011 2:46:39 PM , Rating: 2
How long do you think RIM can survive? Longer than Nokia?

From SeekingAlpha today
quote:
The quarter for Research in Motion (RIMM) was devastating, sending shares down over 14% in the after market, confirming my warnings for RIM investors. The company has a big problem on its hands: It's lost its mojo to Apple (AAPL) and Google (GOOG). While RIM is selling more devices each year, it's been making a lot less from each sale, courtesy of fierce competition from the iPhone and Android.

In 2006, RIM earned $136 on every Blackberry it sold before taxes. That was before the iPhone was launched in 2007. Ever since, it's been downhill for RIM, marked by a dwindling operating profit on each cell phone. In its most recent quarter, the company made $65 on each device. The profound drop isn't done: The company issued weak guidance. Right now, RIM's operating income per device sold is $65; that's going lower as the company is forced to sell at lower prices and margins.
Compare Apple's robust profits per unit through the years, helping Apple clobber RIM. Apple has been able to earn more money every year per unit sale of its devices -- iPhones, iPads, computers, and iPods. While RIM's profits on each sale have halved, Apple's have more than quadrupled. RIM's underperformance is incredible when you remember the companies sell their products in the same space. Research in Motion's numbers wouldn't be so bad if they occurred in a vacuum, but they don't. Pay particular attention to Research in Motion's drop in operating income per device from 2008 to 2009 as the iPhone began to take off.


RE: Marketing speak
By Pirks on 6/17/2011 3:16:44 PM , Rating: 2
How much time Mike Dell would give Apple back in those days? More than for Nokia?


"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

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