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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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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!


"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

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