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
For his part, RIM Co-CEO Jim Balsille had this to say about
this company's performance during fiscal Q2:
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.
quote: No one bought the Playbook
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 sh1tand 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...
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.