Print 22 comment(s) - last by Pirks.. on Jun 17 at 3:16 PM

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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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!

"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home
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