RIM Earnings Drop 59% on Poor BlackBerry Sales

Things aren’t looking too good for RIM. During its second quarter 2012 earnings report, the company revealed worse than expected year-over-year numbers with its net income plummeting from $797 billion in the second quarter of its fiscal year 2010 to $329 billion in the second quarter of its fiscal year 2011.

The company also saw its revenue fall from $4.6 billion to $4.17 billion in the same time period. Co-CEO Jim Balsillie credited the grim results to lower-than-expected shipments of “in-life products as customers worked through their existing inventory and awaited the launch of new BlackBerry 7 smartphones”.

Compounding RIM’s problems further was the fact that the company shipped only 200,000 units of its BlackBerry PlayBook. Co-CEO Mike Lazaridis said RIM is working on turning those numbers around through a massive software update that the company says will address a slew of nagging issues that have hurt the tablet.Improvements expected to be featured in the update include native e-mail, calendar, and contacts — three things we knocked the tablet for in our review.

The update is also said to include the highly anticipated, but oft delayed, Android App Player. Additional improvements expected for the tablet include an enhanced web browser, multimedia video content through the BlackBerry Video Store, which will offer roughly 10,000 movies and television shows.

“We recognize that the current availability of content and applications for PlayBook has limited the near-term uptake of the device on the market and we are actively working with key partners to deliver the most desired applications and content to our targeted market segments,” Lazaridis said. The company is also continuing development work on its first QNX-based smartphone, Lazaridis said, with prototype phones becoming available in the not-too-distant future.

Despite RIM’s poor report, the company said it expects total revenue in the third quarter to be in the range of $5.3 to $5.6 billion, which includes smartphone shipments of between 13.5 million and 14.5 million, an increase of between 27 and 37 percent. The company also touted a 40 percent growth in subscribers. Still, the outlook for RIM is still looking pretty grey from here.

AUTHOR BIO
Daniel P. Howley
Daniel P. Howley
A newspaper man at heart, Dan Howley wrote for Greater Media Newspapers before joining Laptopmag.com. He also served as a news editor with ALM Media’s Law Technology News, and he holds a B.A. in English from The Richard Stockton College of New Jersey.
Daniel P. Howley on
Twitter Google+
LEAVE A REPLY
Name*
Email* (will not be published)
Website
*Indicates required field
Comments*
Submit Comments

  1. V Says:

    A couple of rather glaring typos. “$797 billion”? “Mile Lazaridis”?

FIND A REVIEW
Laptops
All Product Types Accessories Cars Digital Camcorders Digital Cameras eReaders GPS Laptops MP3 & Video Players Projectors Smartphones Software Storage Tablets / MIDs VoIP Wi-Fi
All Subcategories
All Subcategories All-Purpose Budget Business Desktop Replacement Gaming Multimedia Netbook Nettop Rugged Student Tablet PCs Ultraportable
Brand
Acer Alienware Apple Archos ASUS Averatec BenQ CTL Corp. Dell Digital Storm eMachines Emtec Everex Fujitsu GammaTech Gateway General Dynamics Getac Gigabyte Hercules HP HTC iBuyPower Intel Lenovo MSI Nokia Nvidia OCZ OLPC OQO Origin Panasonic Sager Samsung Sony Sylvania Systemax TabletKiosk Toshiba Verizon Viewsonic Viliv VooDoo Workhorse PC ZT Systems
Minimum Rating
Any Rating Editor's Choice 4.5 Stars 4.0 Stars 3.5 Stars 3.0 Stars
Screen Size
10 11 12 13 14 15 16 17 18 20 4 5 6 7 8 9
Resolution
1024x576 1024x600 1024x768 1200X800 1280 x 720 1280x1024 1280x768 1280x800 1366x678 1366x768 1440x1050 1440x900 1600x768 1600x900 1680x1050 1680x945 1920x1080 1920x1200 800x400 800x480
Weight Range
10.1 - 12.0 pounds 12.1 - 14.0 pounds 14.1 - 16.0 pounds 2 lbs 2 pounds and under 2+ lbs 2.1 - 4.0 pounds 4.1 - 6.0 pounds 6.1 - 8.0 pounds 8.1 - 10.0 pounds Over 16 pounds Under 2 pounds
more options
SUBSCRIBE