The nightmare continues for Rim (Research In Motion): the Canadian company that produces Blackberry smartphones is once again forced to deal with unfavorable market conditions. The results of the last quarter of the fiscal year speak of profits reduced by a remarkable 47%, equal to 497 million dollars against the 797 of the same period last year.
Overall revenues were also down to $4,2 billion, down 10% from the last quarter and down 15% from the same period last year. In particular, the performance of PlayBook, the tablet that had started well and got a little lost along the way, was far below expectations: in the second quarter of the fiscal year, RIM sold 200 tablets against the 500 marketed in the previous quarter . Instead, Rim says she is satisfied with the market response to BlackBerry 7, a new product that has "aroused interest" in consumers.
Meanwhile, at the opening of Wall Street the title was in free fall: -22%, for an overall loss in value of 60% since the beginning of the year.
The comment released to Bloomberg by Rbc Capital Markets analyst Mike Abramsky was harsh: "Their credibility is hitting rock bottom." For Edward Snyder of Charter Equity Research, however, "these results are yet another blow to the management."
Despite this, Rim reaffirms faith in its Playbook tablet, promising a substantial software upgrade in the coming months. Furthermore, to entice consumers to purchase, the company is thinking of incentives and discounts that can indirectly reduce the cost of the tablet.
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