RIM Q1 performance over shadowed by future product plans


RIM Q1 performance over shadowed by future product plans

Simon Quicke
Shipment delays and a focus on forthcoming products has had an impact on Blackberry manufacturer Research in Motion (RIM) revenues and device sales.

The smart phone market has become increasingly competitive in the last couple of years with Apple continuing to develop the iPhone and the arrival of Android phones to provide users with several choices heaping the pressure on RIM to keep its subscriber numbers rising.

For its fiscal first quarter RIM reported a year-on-year 24% increase in revenue to $4.24bn and it managed to increase shipments by 43% and subscribers by 60% over the same period in 2009. But both of those percentage rises were at the low end of market expectations.

RIM now has a total subscriber base of 46m and pointed to products coming out in the second half of the year as its answer to some of its offerings from rivals.

Jim Balsille, co-CEO at RIM, said that shipments had been hit by some issues to do with the products coming later in the year and customers had chosen cheaper products in the range which hit revenue.

"We are planning two significant product introductions that will likely bridge the end of Q2 and the start of Q3," he said.

He said that the enterprise market continued to be a major customer for the Blackberry and it had been able to secure customers that had tried rival products and abandoned trials and returned to the RIM products.

Balsille highlighted the performance in the UK as one of the highlights of the quarter highlighting the role that O2 had played in promoting Blackberry.

Apple launched its iPhone 4 yesterday to long queues and weeks of waiting for those keen to get their hands on the latest offering from the vendor.

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